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S.p. drops invariably out of proportion to the relatively low level of dilution.
Always a great time to top up and profit from transient sentiment lulls :-)
Capital raise as predicted last month. Doubled up this morning and raised again. Time to get serious, we hold a very good hand.
Actually alien metals website did
Highlights:
"Elizabeth Hill’s initial 1999 JORC Compliant Resource of 4.05 million ounce (“Moz”) silver at greater than 200 g/t silver: 46,800 tonnes grading 2,700 g/t silver (1.15 oz/t gold equivalent) (Ian Cowden, Iana Pty Ltd, Resource Estimate, Elizabeth Hill Silver Mine, November 1999)
1,170,000 ounces of silver mined between 1998 and 2000 at an average grade of 2,195 g/t silver (70.24 oz/t silver)"
Prospector
"Nobody has said that we already have a JORC for EH, now stop your nonsense."
YOU DID !
cjmorley, I know exactly what you are doing. You are just trying to provoke a reaction with your sarcastic comments. If you can't understand the meaning of comments you need help. Nobody has said that we already have a JORC for EH, now stop your nonsense.
Max
Thankyou for your informed reply. My research did not delve so deep. 1996 was some time ago :-)
Prospector
"cjmorley, how do you manage to invest in stocks if you don't know what's going on? MAX is referring to the plan to get Elizabeth Hill to a JORC measurement, as Bill has already explained."
Read my post again. Max said there was a JORC... not just a plan. I asked for reference.
PS. Try not to be insulting in your responses. There is too much of that on LSE
Interesting, very interesting. Basically, we bought a lottery ticket and won the jackpot with Hamersley
EH - So 4moz JORC of which 3moz is left as my understanding is when this was being mined Silver was around $5/Oz so $20m in total. No wonder they stopped.
So the 3m Oz hasn't gone anywhere however we now expect there to be hell of a lot more in the surrounding areas. So at 10m Oz at $30oz gives us $300m. Someone correct me because this quick calculation makes our Hamersley tenement look astronomical. Have I missed something. Feels like we need $100/Oz to make this big. Thoughts please?
RNS 2/2/21 stated “The JORC compliant Mineral Resource at Elizabeth Hill Mine was completed by Lana Ltd in 1999 for 46,800 tons at 2,450g/t silver (86 Oz/t) for 4.05m Oz contained silver.”
Obviously this is 22 years old and needs updating. But the QA/QC holes they just did is validating the historic data, and now they need to update with the new holes around the halo which has visible silver.
In the June Investor Presentation Bill said regarding Hamersley:
“These permits were originally picked up in a ballot. When more than one company applies for a licence in Australia it goes to ballot. Rio, FMG and BHP had put their name in the hat at the time of the ballot.” So they were after them also.
Ah I see, thanks tufftrader.
cjmorley, how do you manage to invest in stocks if you don't know what's going on? MAX is referring to the plan to get Elizabeth Hill to a JORC measurement, as Bill has already explained.
There’s a ballot system in Oz. We literally got pulled out of a hat as I understand it. All the majors were in on it.
Hi Max
How did Alien get hold of the Brockman project? Just curious why Rio didn't try to capture the land considering they're next door already.
"Then you need to add our JORC resource at Elizabeth Hill "
Max, I wasn't aware of a JORC rating. Do you have a reference please.
"Then you need to add our JORC resource at Elizabeth Hill "
Max, I wasn't aware of
With regards to defined values, we have an inferred JORC compliant resource at Han**** of 10.4 million tonnes. The in-situ value of it at $100/tonne is over US$1bn!
We have estimated operating costs of below $60/tonne.
Therefore, you are looking at a value of over $400M vs a current market cap of just £32M!
Then you need to quadruple our resource since less then 1/4 of the ridges have been tested and they run for tens of kilometres!
Then you need to add Brockman (on the boarder of Rio Tinto).
https://www.alienmetals.uk/wp-content/uploads/Untitled-design-2020-08-26T143843.624-1024x633.png
Then you need to add our JORC resource at Elizabeth Hill (only 1/4 of the ore body was mined out, 3/4 remaining) and the fact that it is now proving to be part of a much larger system with high-grade copper & nickel!
The stock is clearly incredibly undervalued by any means.
So I'm not worried about any future raises especially since we are now within the "18 month prior to production sweet spot".
Any future dips will be bought.
I believe the reason TP have not issued a revised valuation is because it would put their low case around 4 bags from where we are today and their best case about 10 bags away.
From memory, the low case was approx £40m and best case £82m.
They still need to apply the 41% uplift in ownership of Hamersley.
They still need to reduce the 80% risk factor. Even a small 10% revision would have a decent impact on the valuation.
They then need to uplift the potential of Han**** as the range was 5-15mt. That is more likely to double.
Pretty sure the estimated grade was in the 50's also
It will certainly be interesting to see what they do arrive at.
I mentioned the prospect of a raise last week. We have to remember that there are no defined values applied to our assets at this stage. Just guesses based on great initial test results. You’ll all notice TP are also being sheepish about values and numbers, merely pointing out that we have “potential” for upward reassessment. They are only doing their job. We don’t have concrete facts yet, just great indications. There is also the fact that we only have roughly £3m quid in the bank, which ain’t getting much done. So it’s eminently on the cards. Unless a deal is currently being discussed that we don’t know about. And we won’t know, because it’s early days. My view is one of reality. Until we have defined values worked out with WACC’s, accurate iron ore costs, sustaining captital etc etc they we are in risk territory. Territory where we need money to get things done, and moved on. Yet despite that risk, this investment remains, for me, my most exciting. And one with huge potential. I am thoroughly enjoying being a part of this with all of you. And I believe next year Bill is going to have his finest year.
After reading this post I emailed TP and they said they were calling people who had registered an interest in becoming TP clients, which would entail hearing about any future placings in which TP may be involved (not particularly in relation to UFO). So while clearly this does not rule out a UFO placing at some point, I think it is pretty clear that TP are not foreshadowing one either. They’re marketing a service which is of a much more general nature. Hope this helps
I agree DRB83 makes much more sense
I will welcome a raise as that cash can be used to fast track us into production IMO so not always a bad thing. The last placing was at 1.1p so I do not see them raising below this price at all, UFO are cashed up at the moment so by then the share price should be much higher until then.
Bill needs to carefully manage his cash and ensure we firm up the fundamentals before the next placement is due. Upgrade Han****, possibly submit mining license application, drill results from EH, drill results at Brockman. After this point we will be well north of here and the placing will be 2p plus.
@Delphinium I wouldn't be surprised if there is another placement soon. Just to get things over the line. I'd be interested in discounted shares, but the problem is my dealing account is with the Freetrade App. Not sure how I get in.
Anyone else had a phone call today from Turner Pope (supposedly) about registering an interest in future share issues at a discount? They were keen to know my feelings on the Webinar just released. I got the feeling that they were looking at sounding out a few holders as to how they would go for a fund raise. Whilst we had US$3.7m at the end of June and cash burn has been modest we cannot run the tank down to empty. I feel that we will shortly be asked for £3m-£5m which will allow all options and planned work to continue in play to next summer. Hopefully the share price will creep over a 1p before they hand the hat around. Any comments?