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@PaulQ - fair point and when talking about future costs I certainly don't envisage major changes in the time period we may be looking to get a deal done on our iron.
That said the possibility of rising production costs in the future is something we shouldn't ignore as mine life tends to be measured in many years if not decades and potential partners will be factoring such things in to their own considerations even if the prices rises aren't here now.
Hey HH I get that but also remember that shipping costs went through the roof the last year already with the storage of oil at sea, the blockage of the Suez Canal etc
And that still didn't affect the cost of sale during this period. So we can only really guess when/if increased costs hit Australia's iron ore and shipping sector
@PaulQ - I mentioned rising extraction/shipping costs on the basis of both higher energy and labour costs.
Not long ago you couldn't give away oil futures which were in uncharted negative territory, today crude oil is over $70/b and climbing. The largely mechanical extraction processes you mention will consume a heck of a lot of energy, most probable in the form of diesel, and it is these costs I imagine pushing up our future expenses as much as, if not more than, staff wages.
@HH I agree with your sentiment regarding wages however I see this as a future issue not a present issue. The extraction process for iron ore is mostly mechanical and Australia already pay higher wages than most other developed countries so I do not forsee wages rising further in the short term to the point where it adversely affects the bottom line.
I've mentioned before that at current prices our iron ore looks as if it may be hugely profitable. However I've also mentioned that it seems inevitable that energy and labour costs are going up, potentially making it a lot more expensive to extract and ship in the future. There have been mixed predictions about the direction iron ore prices may head in a future stagflationary environment.
I'm not suggesting we may get to a point where our iron is actually uneconomic to extract, merely that by the time we are actually mining it, it may be wise to allow for smaller profit margins than is currently the case.
I've said many times that whilst our iron may be a quicker route to profit, in the long term I personally feel our silver may be the better play. Silver is a metal with a fanatical following whose price can explode upwards on monetary demand in a financial crisis, and so I would be more inclined to expect profit margins on mining silver to increase as margins on iron decrease. We've already got known silver so we aren't green field exploring, we've just got the potential for further exploration to grow resources. If profits on our iron ore can fund extensive exploration of our silver properties then I'd be happy.
There's always a lot of unknowns with exploration which is what makes them high risk high reward but I'm content to sit tight and ignore the short term drop in SP for the potential of longer term gains.
Agree PaulQ - In my eyes UFO is 3p
Tymers cash in your pension cheque and buy UFO best investment decision you'll ever make! If you don't believe it watch Bill on Wednesday, I know I will!
EWT I do agree with you to some point but i think Hamersley first anything else a long way back in second not the other way round and nothing about anything to do with Aliens silver projects this year has made me think otherwise. The tailings will be valuable I agree and important but are not going to change the company outlook it will help with funding obviously but we can keep topping Alien up over and over but at the end point it has to actually go toward increasing company value. The rest is and add on and this year it’s all been bitty and poor the tailings data was already known before we got the results. I believe by September we will have really significant update on Hamersley and that will be rocking by then as will the SP then by all means at that point hopefully the silver projects will have moved along and will be more deserved of the highlights on this board
.6 happens to be closer to current sp than 1.6 fact
Its not a hole parkboy its a mine! If you need a quick win in the next month or so then I'm with Vela Technologies. Yes a cross ramp, I don't do them often but Parkboy you are very much a doom and gloom guy you were shouting 0.6p the other day on the D2 news , UFO will 1x bag from 1.6p to 3.2p without much effort I believe
As Max said, we have a bigger proven resource then most explorers first of all. That is a very high grade mine - average grade >2000g/t, with areas of up to 30,000g/t (almost pure silver). The tailings are also high grade and more significantly, if they are proven to be economic (which is not unlikely at 472g/t), they will likely only need leaching which will be relatively easy. Not sure anyone grasps how significant making a few million £ is for a company at this stage - reduces the chance of dilution, and creates value internally for the company - organic growth.
I'm not sure how familiar you are with the website, but it states that "it is apparent that there remains both underexplored resource potential within the existing 'mine' as well as an 'open pit' surface resource and extensions of the deeper mineralisation". Also of note is that "Grid power and groundwater are available on site, and the area has an abundant skilled workforce nearby - this can often be a struggle for mining companies, but all are local. These benefits extend to the Munni Munni complex, which as Max said we are in possession of 3.5km of the 8km strike - the current Munni Munni Project contains 2.1moz of PGE's - I think it is the southern extension that we own? Further to this, at Munni Munni East (south of EH), alongside the Munni Munni fault we have an area that contains mineralised gossans (oxidised/weathered/decomposed ore which signify subsurface ore deposits).
Anyway, I got a touch side-tracked there. The beauty of having EH, as well as the other silver plays in Mexico is that silver is a well-advertised, hyped metal that rides waves of euphoria that could well see huge capital inflows coming here for exposure to its high prices (I suspect we will see north of $30, and likely $40 this year, even if we don't hit ATH's). That will likely result in the share price overshooting, and if the timing is good, and our target prices reached, may give us a nice boost to exit with.
I think we are all in agreement that the Hammersley projects are the predominant contribution to our market cap, but I would not go writing off the silver projects either, plenty still to come this year, and as much as people may say otherwise, based off research around industry costs etc. I believe our coffers are still looking pretty healthy. This moves fast when it gets going, don't count it out.
I’m with you wolfy, I’m praying for 1.6p by November, I need the funds elsewhere, I bought before and after the spike and the last 9 months have been rough, Bill has over promised and under delivered and it destroys sentiment, Mexico and Greenland are years away, I’m hoping hammersley has enough positive news flow in the next 5 months to get be out of a hole so I can move on.
Exactly Paul I personally think By September I will have what I want to gain from this
I've actually started sprouting greys in the last 9 months watching UFO on a daily basis haha, but I am well researched and glad we are all on the same page. It would be stupid not to take some profit the next time we hit 3 plus
Max your final point regarding Hamersley - more reason why I’m here is see the value so we can defiantly agree there
PaulQ I think it will come and we will be rewarded for our patience I’m still confident
I agree with you about Hamersley. I first invested in UFO for the silver. But last December when Iron Ore started selling for over $130/tonne and I learnt the unit cost of large players was under $20/tonne I said hang on a minute!
DSO is easy, quick and highly profitable. The best thing for a junior miner.
But with regards to the silver & PGE projects, all we need to do is bring them up the value curve to a point where they attract a JV partner. This then monetises the deposit. Therefore, you do not need to wait for the mine to be built to unlock value for shareholders.
Also if you are focused on Hamersley and looking at Turner Pope's valuation, it's good to note that Hamersley's 90% interest downside valuation will now be = £106,796,800 (2.95p/share).
Final point - I invest to make money with this company I have an idea of what I want to make and hope to achieve it. Add the rest of the tuner Pope valuations without Hamersley and your see this is not worth it. They may be exploring but you have to really get a feeling of something is going to happen and this company i just don’t get that. EH isn’t going to go for a valuation of £2m to £50m unless by way of miracle and Donavan was our second most valuable asset on paper at this stage and that seems like a mile off now and wasn’t worth a ginormous amount either when you base it on what Alien is actually currently worth.
Wolfy I'm here for hammersley now aswell. It is the rocket up the bum bum the share price needs ! Get out your shovels boys
Max I feel there is a lot more value than I’m currently holding due to Hamerlsey. Without this I would not be invested here any longer. The permits are ridiculously overdue if you can even call it that they were due end of last year it’s a joke not update except until recently when Bill mentioned it for the first time all year that is may be due probably as was still trying convince people it’s all okay after the bad news of Capstone. How long is a piece of string comes to mind...my view is everything else is irrelevant at this stage except Hamersley, the TP reseach note lays out where the value is obviously give and take I accept that. But it also included Greenland into our valuation so we can defiantly deduct that back off so it’s swings and roundabouts. I’m backing Hamersley to get me
the value and the gain I want. Once that happens my work here is done I’m not here to see where it is in 10 years life’s too short il move onto somethings else just my view I’m sure others have different which is fine
Wolfy81, this is why we are an exploration company and we are just about to do trenching & drilling at EH and Munni Munni. We actually currently have significantly more proven silver than most other explorers.
You say you are a shareholder. Can I ask why you are holding?
Also our full-time geologist Jose Lois in Mexico was working on the new silver permit adjacent to San Celso - Nueva Andromeda and his mapping & sampling proved high-grade silver. He was recently working at D2 taking new samples. And we are just about to receive the permits.
IMO Bill has to tell us something significant Wednesday regarding Hamerlsey to turn this ship around as currently I feel like I’m on the titanic and people are putting in music requests to the orchestra
Max $50 by end of year? There is no plan for this and even if they by some miracle it did that’s 6 months away and still not that significant. It just a sideline and something for Bill to talk about as without this what else can he talk about? They employed someone in Mexico didn’t they? what is he currently getting paid for? No permits - no Capstone. Waste of money/resource there.
So EH is £2m upside until proven otherwise. Bill talking it up isn’t worth the text he’s been doing it all year and I expect more of the same Wednesday. No substance and SP stagnant or falling. The tailings - 16000 tons of waste material 472g silver on average per ton based on current results. Maybe be worth a few million but not going to be game changing IMO.
*The tailings on their own will be worth more than £2M in profit.
What if silver hits its ATH of $50 by end of year when we start getting income from the tailings (if all goes to plan)?