George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
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"alien metals secures 21-year mining lease for han**** iron ore project in western australia"
https://twitter.com/directors talk/status/1783877457550233844
have a nice weekend :)
We did get a mining licence for Iron Ore DSO last week or did I just dream that?
Iron ore price set for 3rd weekly rise on China demand
https://www.mining.com/web/iron-ore-price-set-for-3rd-weekly-rise-on-china-demand/
"The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) recouped earlier losses and closed daytime trade 0.06% higher at 884.5 yuan ($122.07) a metric ton."
Sinter, whats AIM stardom to you? Previous example? I think a strong tell will be when the telegram group numbers increase... I remember the heights of EUA GGP etc even PREM has 1000 folk in the chat. I still dont think we on the avg AIM investors radar
We could be six months from AIM stardom. ⭐️
Throw us a bone 🍖 guys.
What were you up to at PH ( MM and EH) ❓
https://kingworldnews.com/michael-oliver-the-mania-in-the-silver-market-is-directly-in-front-of-us/
What the Maestro thinks.
https://twitter.com/RickRuleRulz/status/1783821148968435750
What makes the price of silver go up?
Silver prices move based on a variety of factors including supply and demand, inflation, and the strength of the dollar. Prices tend to rise when the supplies are low. When the dollar weakens, investors begin to look to more stable investments like precious metals, such as silver, as a safe place to park their cash.
Max, I am in line with this. We always want 100% of the pie but when you transition into producer you have to give something up and the only leverage we have is our asset/ Like you say 100% of ~8Mt will be less than 50% of the 40-50Mt which in those ridges undrilled. I think thats the way to look at it when the JV comes through. I know many may think we given up too much of a % or whatever but its but unlocking profits... Long-term 10-20 plus years you would hope to look back and see it as a no brainer
JV route sounds good to me.
Any percentage of IOCA we have to give up for the JV, we make back on significantly reduced larger player Operating Costs.
We then also significantly increasing the size of the pie very, very quickly by drilling.
Ridges in Hanc0ck continue for several kilometers.
Mallina has same geological units as Sirius, but never been drilled before.
Brockman has an est exploration target of 233Mt!
Vivash Gorge has POW (drill permit) in place ready for drilling.
Would have preferred to do it ourselves with offtake and funding, but JV partners like FMG may want our higher grade reserves.
https://www.fool.com.au/2024/04/26/buy-one-sell-the-other-goldmans-verdict-on-these-2-asx-200-mining-shares/
Yes Max, China plan years in advance.
They even vertical integrate.
https://www.miningweekly.com/print-version/western-range-iron-ore-project-australia-update-2024-04-26
Just need to look at the mega trend. China are adding 300 million people (size of USA population) to their middle class by 2030. Then add India which are adding 600 million people to their middle class by 2030.
Then add the ASEAN region etc.
Not enough to go around.
I've given up trying to understand what is happening in China. In the space of a few days in any given week we will get conflicting stories saying "Demand strong", "Demand weak", "Demand strong", "Demand weak"...
We are in the quiet before teh storm but it is going to be a beautiful storm
hold tight not long now :)
Beautiful CJ.
https://fred.stlouisfed.org/series/PIORECRUSDM
Just a note to Myavian who took great pleasure telling us a couple of weeks ago that Fe had dipped intraday below $100
As we speak, it is $109.68 pt
UBS analyst turns positive on China's property market after being first to downgrade China Evergrande to sell three years ago:
https://twitter.com/CathyYuanZhang/status/1783689534737432609
Bothered….
https://www.londonstockexchange.com/news-article/AAL/rejection-of-bhp-proposal/16441905
Livestock. Our immediate problem is whether our BoD can get the IOCA across the finish line. They do that and UFO will go from strength-to-strength off the back of Silver, and our other PGEs, for years to come!
And that excludes Brockman!!!
Good morning to you.
FG
What will drive silver to surge?
Right now, demand for silver is skyrocketing beyond its traditional uses to emerging technologies including electric vehicles and renewable energy projects. Much like gold, silver has been used as a safe-haven asset during economic uncertainties and inflationary pressures – I see no reason why this would not continue.
https://www.proactiveinvestors.co.uk/companies/news/1046176/are-we-facing-a-2010-like-silver-boom-1046176.html
I have said many times look at the Fenix example they went out there found a buyer negotiated a deal to pay it back by discounting per ton and in 12months had paid it back and were siting on a profit. They have already said they have the contractors and the costing all they have to do is go to China find the buyer and away we go. Or just JV it lol.
944T
Not really worried either way, it is what it is.
Alien Metals could be a marginal producer with low capex and high production cost, reasonable annual tonnage, decent mine life, with plenty of room to grow the resource. Fabulous infrastructure and great jurisdiction, in a commodity that will be in high demand for decades with build out of the words move to electrification. This means we have huge operational leverage, and will boom and bust with iron ore price, giving volatility to the share price.
OR
We JV and have done with all the worry, take our cut for all the hard work over the last 5 years (often it takes 10), all the stresses just go away, and we crack on as a revenue and cash flow generating company and develop the rest of JV our critical and battery metals portfolio.
Not trying to talk anyone into buying or holding here, as in the main what any of us say, won’t affect the success or failure of my investment. I’m only here the sentiment and community camaraderie.
Good evening one and all.
Fenix is a great example. Look at how they have hedged as prices have moved up. Trouble is we can’t hedge yet. It’s a perfect example of where UFO should be if we had been mining a year ago. I agree!
Well said Smiller.
https://stockhead.com.au/resources/bulk-buys-how-iron-ore-junior-fenix-resources-sees-a-pathway-to-a-long-term-future/
DEMAND
Those with lower grades may want higher grades to blend.
What about Fortescue's low grade iron ore?
The bad news for Fortescue is that the broker believes that the discount will widen on its low grade iron ore in the coming years.
And given how much the miner is planning to spend on its decarbonisation plans, this could have consequences for its free cash flow and ultimately its dividends.
Goldman expects Fortescue's discount to the benchmark price to be 89% in 2024, 86% in 2025, and 83% in 2026 and 2027.
PRICE
FE62% regulates and fluctuates between a range through supply and demand.
https://markets.ft.com/data/commodities/tearsheet/summary?c=Iron%20ore
AUD/FE divergence
https://en.macromicro.me/charts/215/aud-iron-ore
Higher highs and higher lows in Global Iron Ore price.
https://fred.stlouisfed.org/series/PIORECRUSDM
MACRO ENVIRONMENT
Commodity prices and stagflation empirical study.
Our analysis suggests that the individual stagflationary effects of commodity prices and the dollar on non-commodity export-dependent economies have compounded each other over this period as the two variables increased in tandem. This was a break from the historical pattern, when commodity prices and dollar used to move in opposite directions, so that their individual effects on stagflation risk tended to offset each other.
https://www.bis.org/publ/qtrpdf/r_qt2303f.htm
FOB, C1, AISC
Old FMG study from 2015 says 12% of their cost comes from Oil price.
https://fiig.com.au/research-and-education/fiig-research-news-item/2016/11/23/fortescue---explaining-the-various-cost-and-price-metrics
C1 $20+ in 2021.
https://www.australianresourcesandinvestment.com.au/2021/10/29/fortescue-consolidates-costs-as-iron-ore-shipments-peak/
Alwyn said we can make money above $85! I believe the current average Iron ore price fluctuates could be $100. I believe JV partner will mine the ore much cheaper than our AISC. I believe JV partners will drive a hard bargain, but the Ore will get mined and Alien Metals will be transformed from a loss making business that dilutes about £2m per annum to a revenue and cash flow generating business. I have nothing more hopeful I can say than that and I have no idea what the share price will be.