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SteveBT. Do read the Shard report fully. 23p is based upon "Forward EBITDA" Not based on the shocking numbers of Q1 alone.
The people that have their head stuck in the sand have followed this down from what would today be the equivalent of 60p they have a invested interest to try and push the value back up.
Read the fundamentals and do lots of reading old RNS's before parting with your cash so you fully understand where this was meant to be now and the trajectory it has taken. Either way, do as you please of course
Dreamingof, thanks for the pointer on that. I had to go back and read through to satisfy myself on my understanding. I found the relevant part (copied below) from the October Q3 report. The lower grade ore that was partly oxidised yielded less tungsten and higher grade fresher ore was processed- now this is in line with my understanding- the extra drilling was what identified the higher grade ore. From my visit and conversations with Fernando the impressions I got was that the initial benching would be lower grade ore, but that as we worked back (you have to get through the first exposed benches first) we would then get to higher grade stuff as yet unexposed and fresher and also to get to the ore Fernando and his drilling exercise had uncovered. (i can honestly say that I have said this in conversations) . So in my view, it was not drilling in the wrong place, however, the initial benches with lower grade ore did not yield to expected levels and fell short of expectation,. so in fairness to your view it would seem the evaluation of the initial ore body and the capability of the equipment to process that had not been correctly calculated.for the kit as it was at that time (there have been subsequent modifications and changes to processing) It was about the ability to process then, not drilling issues.
So for me I am optimistic for much improved outcomes, we have flooding to clear,increased availibilty at hifgh utilisation of equipment and will be able to access higher grade ores, also potential for Regua ore.
Any road up here is the extrasct i referred to from the RNS:
The enhanced process control and maintenance improvements increased plant production and metal recovery in the quarter. The team also fed fresh unoxidized ore into the plants, which is known to generate less fines and achieve better recoveries. This had a positive effect on production in parallel with the process improvements and increased metallurgical recovery.
Stevebt
The 23p figure is based on tungsten being $260 per mtu, it’s currently $278, and if you read it a bit more carefully you will see that only a 10% increase in the $260 price, which would be $286 results in a 35p forecast - additionally they presume tin at $23,000 per ton, and it is today over 33,000 per ton. Clearly if tungsten remains at $278 that will give an uplift in the SP if it increases then the uplift will be greater, and whilst the amount of tin we produce is a lot less than the tungsten we produce an extra $10,000 per ton is a significant amount which will be seen in the bottom line.
Only you can decide what to believe and what not to believe
GETINTHERE, fair market share of 23p doesn’t seem too impressive unless they are basing it on q1 numbers. They seem to have high hopes for production from 2025, that mine must be huge.
Safety, without going through all the old RNS, what they did was to drill in the area they found more recently adjacent (don’t recall whether it was north, south, east or west of the main area). Because of oxidization what they were mining wasn’t fit for purpose. It was a screw up and they went back to the original area afterwards. Pls feel free to go through the old RNS, whilst they don’t admit they screwed up the facts are the facts.
Steven, I should explain. I am invested in Wres, I been to AGMs, know other posters and have met some of the directors, managers, other investors and mangers on site. I have also visited the site; so you can easily take the view that my expressed opinion is biased. In the interests of balance I would say that can be taken as the case.
Conversely, with regard to GUG and his postings; he professes to not like the company, certainly negative towards the BOD, states he is not invested and is unlikely to do so, sees little chance of improvement and takes a critical and sometimes incorrect stance ( e.g, where la Parilla actually is). He likes to post a lot sometimes double figures per day, and on repeated days.
Personally, I would not bother posting on a company bb I am not invested in, it appears GUG does not hold the same views on that as me.
Therefore, when you read our postings you may find that there is little agreement.
Dreamingof, I am bit confused on your comment about drilling in an area without due diligence. My understanding is that the drilling took place to establish where the ore is. Drilling is de-facto part of due diligence, the information from that is then analysed to establish where to mine. I think if they had mined an area where there had been no exploration drilling that would have constituted lack of due diligence. Exploratory drilling, is just that and not an enabled process for where is ore own to be.
There certainly was a lot of drilling of a further extended area after the mine was starting to be established. This took place at the behest of, Fernando de la Fuente, the then mining manager and a geologist with much experience of the la Parilla site. Fernando took a reasoned view, based on his skill set, that given the geological structure and type together with where and how the scheelite had presented that this particular extra area would bear ore. Following that a further 50 exploratory drill holes were made, this did get a bit tense as the first forty didn’t come up with any postive results, then they did and there was found to be a considerable ore body. This was explained to me by Fernando when we standing on the area with the positive results and Fernando pointed out the visible scheelite that was presenting. So in my view we drilled in the correct place and drilling is an exploratory process. However, I may have missed something and there has been an RNS saying they didn’t do due diligence and were drilling in the wrong place, in which case I stand to be corrected.
Stevebt
Take s read of this RNS :-
Fri, 23rd Apr 2021 07:00
RNS Number : 4171W
W Resources PLC
23 April 2021
23 April 2021
W Resources Plc
("W" or the "Company")
La Parrilla Management Team and Shipments Update
W Resources Plc (AIM:WRES), the tungsten, tin and gold mining company with assets in Spain and Portugal, has appointed Mr. Jesus Martin as Plant Manager at the La Parrilla tungsten and tin project in Spain.
Jesus will bring more than 40 years of experience operating metallurgic and gravimetric plants, mostly on tungsten and tin projects in Spain, including: Rodalquilar, Los Santos, Penouta and most recently the Barruecopardo tungsten mine in Western Spain.
The senior La Parrilla management team includes Pablo Neira - Managing Director (Spain), Juan Garcia Valledor - Mine Manager and Jesus Martin - Plant Manager. This appointment strengthens the management team at a key stage in the production ramp up at La Parrilla.
With the team at full strength, concentrate recovery rates increasing and progress being made to lower the water levels at the mine, W looks forward to regaining access to the high-grade ore bodies and increasing production.
Shipments
In the quarter to date, W Resources has made three shipments with a fourth scheduled for later this month:
· Two shipments of 20t of tungsten concentrate
· One shipment of 19.3t of tin concentrate
· One shipment of 20t of tungsten concentrate is scheduled for 30 April 2021
Michael Masterman, Chairman of W Resources, commented: "I am pleased to welcome Jesus Martin to the La Parrilla management team. With the plant improvement plan recently completed he brings with him extensive experience and mining knowledge and strengthens the management team as we move towards reaching our T2 production run-rate later this year.
"We are making good progress this month and have already shipped 40t of tungsten concentrate and 19.3t of tin concentrate, with further shipments confirmed in the coming weeks."
Information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 which is part of UK law by virtue of the European Union (withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
Enquiries:
W Resources Plc
Paul Hailes, CFO
investor@wresources.com
www.wresources.com
Grant Thornton UK LLP
Colin Aaronson / Harrison Clarke/ Seamus Fricker / Lukas Girzadas
T: +44 (0) 20 7383 5100
Joint Broker
Turner Pope Investments (TPI) Ltd
Andy Thacker / Zoe Alexander
T: +44 (0) 203 657 0050
www.turnerpope.com
Joint Broker
Alternative Resource Capital / Shard Capital
Alex Wood
T:+44 (0) 20 7186 9004
www.altrescap.com
Damon Heath
T:+44 (0) 20 7186 9952
www.shardcapital.com
Alma PR
Justine James
T: +44 (
Dreamy
No your not on my filter list, and your not likely to be, your posts are your honest views, and even if I don’t always agree with everything you say I do respect your views as a fellow investor, my issue is with non invested posters who post constantly negative, misleading comments and sometimes lies.
I don’t believe I am on GIT’s filter list. As for Shard’s report, much like many analysts reports, don’t seem to be worth the paper it’s written on, just compare their last report prior to this one or was that another analyst....bottom line talk is cheap, a couple of quarters of proper production, without excuses or acts of god....then we will see results. Gig, you are not the worst deramper I have come across, hence not blocking you but doesn’t mean I necessarily agree with what you have to say
Stevebt
Link to the Shard report in the WRES website :-
https://wresources.com/wp-content/uploads/202104-Shard-Capital-WRES-Research-Note.pdf
Dreamingof. Looks as though, despite holding more shares than getinthere, you've made his filter list. Congratulations.
Amazing how he can comment on things he cannot read, true insight !
Stevebt
I have the worst of the constantly negative, non invested posters filtered, and therefore only see green boxes when they post, this is due to the nonsense they have often posted in the past, I’ve noticed that there are a couple of green boxes, so one or more of them are at it again.
To give you an idea, one of them posted that the P in PE ratio was Profit ! And another stated that the board here had given mates rates to Atlas (a company who WRES have borrowed from under clear and specific terms) this was proven to be a lie.
I said before that you should make up your own mind, I would add, that my suggestion would be that you read the latest Shard report mate, it details the situation and is in my opinion a very fair and honest representation.
Good luck.
You missed out them drilling in an area without proper due diligence and research, which was different to the area identified in the FID and led to problems....that one was purely down to management.....
Steve, Getinthere started off very well then went downhill in his synopsis.
"The above is all factual, the current situation is that the plant is now working very well, tin is more than $10,000 per ton higher than expected, tungsten is about $18 per mtu (that’s $1800 per ton) higher than expected and is forecast to rise, we expect to be mining from the high quality area by the middle of the year and are forecast to increase production markedly in each quarter."
" the current situation is that the plant is now working very well,"
There is nothing to suggest the plant is working well. Last production figures for Q1 where terrible. Possibly because of the flooding but until production (Not shipped) for Q2 is available, it is impossible to say
"are forecast to increase production markedly in each quarter."
No such forecast exists that breaks down each quarter. It is just hope, not forecast.
That he holds a large number of shares is undoubtedly true, but he is circa 70% down on them. He holds because he does not want to crystallise his losses. (and believes that WRES will succeed)
Now, the plus point is the price is fairly low, thats because of all the uncertainty, lack of production and a lack of trust in what Masterman states. He has a history of Over promising and under delivering. That the price is low you might think that is ok. However, there is no news likely to come that will move the share price in the next few months. Troajan calls it 50/50. I'd probably call it 80/20 where the 20 is WRES.
There is still much to unfold here. Debt will continue to rise through the year, additionally there may yet soon be a placing/debt rise but if the PIK continues that will add a further $6m this year to the debt pile.
Good luck.
GETINTHERE, that’s an excellent post for me and very helpful.
I dived in with a small punt at closing but my plan is to sell my card factory shares and buy into something that’s stands a chance of being a double bagger? Is this the one for me?
Stevebt
I have been invested here for almost ten years, my average is a lot higher than the current SP and I own 370,000 shares, I state this at the outset so that you know honestly where I am coming from.
The situation with WRES is that moving to full production has been delayed by almost two years due to various issues, we had the wrong size steels delivered whilst the plant was being built, and had to wait for new ones to be manufactured which took months, the new all singing all dancing kit, that was supposed to be state of the art, did not function correctly and as s result has had to be modified, in situ by our engineers, then we had like the rest of the world the issues caused by covid which included having to close the mine down for a month and then work firstly on 3 days a week, then 4, currently 5 and not moving to 7 day 24 hour working until later this year, then to cap it all, we had a massive amount of rainfall (well beyond what historically has ever fallen in the area of the mine at la parilla) that flooded the area where the highest quality ore is located, and we are still having to pump that area clear of water before we can get to the high quality ore.
The above is all factual, the current situation is that the plant is now working very well, tin is more than $10,000 per ton higher than expected, tungsten is about $18 per mtu (that’s $1800 per ton) higher than expected and is forecast to rise, we expect to be mining from the high quality area by the middle of the year and are forecast to increase production markedly in each quarter.
So, wether you invest or not, is really a question of wether you believe, (as I do) that WRES has, to paraphrase what was in the recent Shard forecast, finally past it’s nadir, and therefore firmly on the road to success, or wether you believe that yet further misfortune will be visited upon the company, as a couple of the non invested posters on here would have to believe.
Your choice mate.
Good luck with whatever you decide.
Steve, don't take any notice of GUG, his negativity will lose you the will to live!
Answer. Neither Buy British
:-)
Man walks into a Mercedes dealer. "Shall I buy a BMW or a Mercedes"
I have been watching this stock for a while and think adding a mining stock to my portfolio would be a good idea. I have already missed the rise on kodal so was hoping this one may have some legs later this year? I know today’s price is a good price but only if it will move up.
I read about some of there debt but the firm still looks positive? It’s virtually a coin flip for me this or Alien so is wres better?