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Well lets see
Im really hoping we can get some advancement in EHs as im not confident about the short/medium term prospects of iron.
Silver will give us something else to play with
wow lots of comments to catch up on today, expected a drop maybe not 8% but is what it is until we get good news which can get us out of this manipulative low range sup 1p. I think anyone here who thought DSO was going to stay at above $200 is crazy , most here knew it was always going to fall back. But its good from a charting point of view now to have these new recent highs. I think once USA/Europe starts spending its way out of this mess via infrastructure bills the demand for steel will pick up I think in this decade its going to average like $150 probably which fine. UFO didn't purchase these assets knowing or thinking that DSO would be $200 , it means we will get less if we decide to sell it of but even Fenix had a price of like $100 in their feasibility plan. Regardless of the price , a JORC and JV/sell off is a great result for UFO . From a management point of view it shows buying a cheap project , Suring up and returning a profit with no messing about.
UFO are in early stages of exploration with no revenues to dpeak of, so the prices of base metals and precious metals should return and go even higher as we go through these cycles. History proved that so, imo, investors are reacting as the always do with over dramatic scare mongering. Like women looking in a mirror to find their first grey hairs and a wrinkle.
Get real...UFO has plenty to offer and EH is looking better than ever.
The price of iron orr will go back up. Cyclical people getting their knickers mixed up with their knackers and knockers. Bill'll fix it.
EH is the project to go forwards.
Even Newcrest have mentioned having issues with sourcing equipment and skilled staff and lab delays in WA, worth looking at the end of their General Explorations Managers last interview at Diggers and Dealers* perhaps. Think it is perfectly acceptable for UFO to have struggled a bit on EH plans.
Let's wait for a PFS and judge the outlook for iron ore prices and transport costs etc. before getting too negative about the potential for a standalone niche operation or JV potential.
Obviously eth markets are starting to worry (Evergrande etc.) and Oz miners seem to be taking a hit based on other factors too related to china etc.
The thing is many of us moved into these types of investments expecting doom and gloom on a global level - with the aftermath leading to more potential for the sector and PM's etc.
*Newcrest Exploration manager Answering a question from the host about dealing with challenges from increased cost of mining services and the lab delays
- The 21-day turnaround they aim for is currently out to 40-60 days like most others.
- Another industry challenge is obtaining good drillers, geologists and support staff, so they are helping to develop the next generation of personnel.
- Shortage of resources and price pressure really keeps them moving.
https://www.youtube.com/watch?v=3WPeO7JY2jk
2nd attempt at posting.
stevomining. I've been keeping an eye on Evergrande. I know nothing, but supposedly the CCP are "forcing" Chinese banks to keep the company afloat. It's too big to fail. This is supposed to be China's century. If Evergrande sinks, China's status in the world sinks with it.
ATB, FG
stevomining. I've been keeping an eye on Evergrande. I know nothing, but supposedly the CCP are "forcing" Chinese banks to keep the company afloat. It's too big to fail. This is supposed to be China's century. If Evergrande sinks, China's status in the world sinks with it.
ATB, FG
We are surrounded by the majors.
Rio Tinto's unit cost as stated in RNS 16/07/2021 is now $18.0-$18.5 per tonne (previously $16.7-17.7).
BHP’s unit cost is under $15/tonne as stated in their RNS 17/08/21.
The majors have spent very little on future production since last boom of 2011.
Also Bill mentioned the option of getting a large cheque after JORC.
The main Sirius Deposit to the East of our Sirius Extension is owned by Brockman Mining and Hanc0ck Prospecting is to the north of our Sirius Extension.
Globally, $32 Trillion dollars has been created since the beginning of the pandemic and will start filtering through https://video.foxbusiness.com/v/6271764120001#sp=show-clips
Plus many more Trillions will be printed soon focusing on infrastructure.
If there is a steel shortage now, just wait until the infrastructure stimulus comes through!
Need to get out of cash now and invest in commodities that can't be printed.
@HH, I mentioned it in my post. Yup, I spent quite a bit of time in Brazil so have many friends who work for Vale as engineers. They are gearing up to get back in the market, big time.
Im confused though- when the iron price was soaring- it was mentioned here every second. When its going down, we are being told to "not read too much into it".
This will significantly affect any potential JV discussion. "Significantly" is a understatement
Time for BBG to get his ass moving on EHs
@stevomining - I've been following the story myself, indeed it was only a couple of weeks ago that the thought police here lambasted me for suggesting we needed to remain aware of the possibility that iron ore prices may fall back below small producers operating costs. These individuals do however have a tendency to criticise any and all cautionary projections but later use them to temporarily excuse or defend situations that don't pan out in a manner that fits their own narrative.
The other "elephant in the room" regarding iron ore is the huge production coming back on line after problems in Brazil. There have been a few studies of late showing that growing global demand can be met by the output of existing producers currently operating on costs below $65/t.
We don't know where ore prices or demand may be a year or more from now as global economies are so volatile, but it is always wise to consider a range of possibilities, plan for the worst and hope for the best.
To be honest i am getting offered between 4-6% more than any of my shares show, think the MM are just using your emotions because of the the China/evergrand play
MHO don't thing china will let there own market fail
One of my good friends in London is from Perth, while he doesnt work in mining, he knows a tonne of people who do.
In February I tried to find some 'on ground' info on UFO through this friend. He reached out to some contacts, and while they werent familiar with the company (I am literally re-reading the whatsapp message from 22nd Feb) one told me to stay away from iron ore as it was a bubble and was about to crash. He said the Chinese had artificially stimulated demand and there was now over exploration in Oz which would mean a future glut when those projects come to fruition.
People are always predicting bear markets so I didnt take much notice and tbh I havent been following the iron price so was shocked by how much it has fallen.
This makes our non-iron projects even more important now. We were sold UFO as a "multi asset" company. Looks like they betted on one horse..which was made of iron.
EHs should have been drilled months ago, we would be into Phase 2 or 3 drilling now and maybe close to a JORC
Donovan, had it proven to be successful, would have been at least in Phase 2.
And then there are our other prospects in Mexico which havent budged. Despite us spending money on a salaried local geologist. Well at least I have stopped Bill using COVID as an excuse. He hasnt mentioned that excuse once since I exposed his misrepresentation of what was happening in Mexico.
I think it would be foolish to go back into Donovan, especially with our limited cash. We should concentrate our efforts in Oz, to get the JORC for the Western Ridges (which is even more important now due to the iron ore plummeting) and drilling EHs. We need some sort of non-iron JORC to offset what is currently happening and silver seems our best play. There is too much work needed in Mexico now for us to open up a second front, it would be very costly.
Im hoping we can start Phase 3 drilling soon and get a 2nd JORC for the DSO by end of year and with them both, we can enter some JV. The question is, who is going to be looking for iron in this current climate? The midtiers and majors are already down today. Why would they want to add to the glut?
The reason I invested in UFO was I envisaged progress in silver, iron and copper so if one went down, you would at least have the other 2.
@stevomining. The causes of the spot price of Iron Ore falling are temporary:
China's temporary clampdown on steel production to reduce pollution and Evergrande requiring debt restructure.
However we have high-grade DSO (which is what they are after - least polluting) and the increase in middle class in Asia is expected to increase from 2Billion to 3.5Billion by 2030.
BTW, when do you think we will be selling our DSO Iron Ore? Just around the time when Trillions of infrastructure stimulus will start coming online right?
And good luck with the coup you want to organise! Better luck doing it in Guinea.
It means absolutely nothing at this stage. Until we get jorcs it means naff all.
Also iron ore price hasn't permanently collapsed this is Chinese manipulation. Watch it rise from the ashes again early next year. They have their apparently environmental targets to hit for year end and they wanted iron ore price down so this is how they have gone about it.
Really surprised noone has mentioned this. Biggest news in the markets for some time. People post inane videos from youtubers but not actual important things happening now. If this falls, this could be the Lehman brothers of 2021 China- who knows the knock on effect
Evergrande is close to collapsing.
From The Guardian:
"The contagion factor was most visible in Australia where the benchmark ASX200 index closed down 2.1% on Monday afternoon as investors dumped mining stocks such as BHP and Rio.
The price of iron ore, Australia’s main export, has fallen 60% to below $100 a tonne from its high point in May thanks to a slowdown in the Chinese property and construction sectors. If Evergrande collapses, the sector’s difficulties are likely to accelerate, sending iron ore lower still.
Futures trading points to falls in stock markets in Europe and the US on Monday with the FTSE100 on course to shed 1.3% at the opening bell. Concerns about the Federal Reserve’s plans to phase out its huge monetary stimulus policy, surging Delta infections in the US, and signs of a slowdown in the global recovery are all being compounded by the Evergrande crisis.
The Fed’s policy meeting this week is being closely followed, with some experts predicting it could set a timetable for winding in its vast bond-buying programme put in place last year to support the economy and equity markets"
From The DM
"As recently as July, iron ore was worth more than $US200 a metric tonne.
But a cutback in Chinese steel production saw iron ore prices fall by 21 per cent in August.
Iron ore prices are now down to $US100 a tonne for the first time in 14 months as Brazil also looks set to boost supplies, two years on from the Vale tailings dam collapse.
This means China has more choice beyond having to buy the commodity from Western Australia's Pilbara region.
Prices for the key commodity fell by another 5.5 per cent during the weekend, following a 22 per cent plunge last week."