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With Eureka I am hoping they can make the open pit work and be profitable enough to effectively free carry the project and the extra drilling required, to prove up a potential IOCG. I wonder if the sheer size and scope of projects that we have for a small co has almost worked against us. Was an interesting point that Zak and Colin discussed in the podcast, certainly a nice problem to have.
Howezap - we hope! The other tenements aren't subject to the same buyout clause as Racecourse. If AA were to buy Racecourse I would still expect them to be interested in the other tenements if they are showing promise, however we would be under no obligation to sell to them.
Correction I said 500sqkm is 69sqkm all tenements equal the 500.
Ella, re. 15.51 in the presentation it states ‘prospect ore are in the process of purchasing a 100% interest in the exploration tenements from AA. ‘ Do we know if this has been done as they would then, potentially be separate from the existing agreement.
Another one for you Ella,
Daniel Craig stars in the new James Bond film as BRD-21-007 in “Ella’s Gold”
Out soon!
I originally bought in at just under 2p (I think) at the very start of the year. I sold some at 8.5p (by sheer luck) and bought more on the way down so the price isn't hurting me the same as it is some, but it would be good to see it higher! That diagram that Iceberg posted, together with the last interview and drilling results, really show the scale of the Racecourse licence.
If AA want all the BR licences then provided they pay enough for them I don't mind. But I don't think the price will be right from our prospective until we prove the value of these other licence areas. Until we do that AA will want to buy them for peanuts. So all this will probably take some time yet unfortunately. In the meantime, to keep us all happy while we wait, we could do with the share price being several multiples of its current value. It' so much nicer waiting in the black (or blue if that's how your broker's software shows it) ) rather than in the red!
I'm not convinced AA is the most likely candidate for Racecourse but the NSR in their favour will have an effect. If AA did want to exercise the buyback would they not also want any other licences we have in the area that also showed promise? I'm not suggesting we are obliged to sell but if a company as large as AA were setting up a new operation I would expect them to want as much potential for growth as possible The April 2020 presentation show an annual expenditure commitment split across all the licences but I'm not sure if that made it into the contract. I don't think we have any drill ready targets so I wonder what our next steps on the other licences will be.
Don’t believe that is the case BH.
The 2mtCuEq is just a target that AA’s interest will start. It is not their call to’ jump back in’ when we have a updated JORC of around the 400mt mark as the revisions are increased along the way as the proven resource increases.
If the BOD decide to sell part of the asset to further fund the successful exploration of the remainder of the license area it would be through a JV that CB has always been against. Otherwise the ‘racecourse project’ EL5574 which contains footrot and covers 500sqkm will be fully proven before going for 3rd party valuation. The agreement just gives AA first refusal.
As you say AA or any major don’t prove up resources they buy them. Xtract will not give asset away and a major will not touch anything that is not a measured JORC that is ultimately converted to a proven resource. The choice is ours and CB has also stated we don’t have to even accept the 3rd party valuation which ‘could’ potentially void the agreement opening up opportunities to offer to other majors such as Newcrest who are in the region.
So I don’t think we are close to a sale yet at racecourse.
Whatever the Board decide/do I seriously hope they don't plan on shafting the existing investors by underselling ANY of the assets to gain a quick couple of bucks to get them out of a short term bind of a low share price.
Myself too shorn, certainly don’t profess to know any more than the laymen but IOCG can be as little as 10mt up to 4billion :)
I would say we are closer to proving up the "saleability" of Racecourse than Eureka. Especially with the AA buy back option and the jurisdiction in question. AA have set the parameters for what they want to see before they jump back in. God knows what we need to prove before Eureka becomes an attractive asset to the majors. I would like to keep the other 4 BR licences to see what else they contain. Unless they come as a package (don't see why they would - AA want someone to do the work for them), in which case we have no option.
Cygnus, it is a very good question and something which really triggers discussion on here and I would imagine also on the Xtract board. How does this play out now we certainly know the huge potential of BR and the probable potential of Eureka?
howezap
Forgive my ignorance but why would an IOCG be quicker to prove up ?
My understanding IOCG's can be very large scale - so surely the shear scale would take longer than the Racecourse to prove up ??
ATB Shorn
Will be interesting to see how the company intends to plan the next discovery phases between Racecourse and Eureka. With the central resource that lies inside the ‘current’ conceptual pit at a rough guess being 50-60% proven. Also having the extensions to the east and the south east to be defined and proven plus there are the potential of further porphyry being found within the tenement area and not forgetting Footrot.
If the IOCG is confined at Eureka, could it be more likely that a sale of the asset there would be more likely, as would not necessarily take ‘any where near as long’ to prove up and would have a major, readily willing to start negotiations on what would become a valuable asset.
Proceeds would pay for the ongoing exploration of the entire ‘Bushranger copper gold project’ including the other tenements held.
One of many ways this could be played out over the next couple or 3 years.
Ben, your points are the reason I originally started the Twist of fate theme. Bushranger is made for proving up and selling on, not for developing which would be too expensive and take too long. Hence I was wondering if the cash from BR would be used in Africa because the company would then have the funds to develop its own exploration results.
Let's get back to the original point because I think it's quite interesting. Tony, no one gives a to*s about your purchase of Next shares in 1991. How utterly, utterly boring! Go take your ego trip somewhere else. Wow.
Anyway, let's remember we have the AA buy back clause, which if I'm not mistaken is for EL5875 or whatever it is (can't be bothered to check). This is one of 5 licences and it includes Racecourse (open pit area + south east etc. extension) AND footrot.
Now, I truly believe CB wants to eek as much out of this licence as possible before selling it back to AA who imo will want to buy it (shortage of copper pipeline, increasing copper price AND unknown extras that the licence will reveal over time). However, good business sense may mean that we sell that particular licence for $250-300m to fund Eureka mining, further exploration at Manica and the other 4 licences at Bushranger. Imagine if they had just half the potential of Racecourse?
In my opinion, CB wants a nice payday before potentially taking a backstep (non exec director to a flourishing mining company whilst keeping a couple mill shares?)
On the topic of further expansion at Manica, I didn't realise there was so much potential there. Dots Luck and Boa Esperanza are additional targets with proven gold and potential for more exploration / mining on top of Fairbride and Guy Fawkes. All very exciting and looking forward to seeing what CB decides to do over the next 6-12 months. If the upcoming assays are decent, we will LOTS of options/suitors knocking at our door.
@Hottesttony
enough of your rambling - filtered
I don't filter very often, but my sanity has to take precedence :)
Farewell Walter Mitty - oops, I mean hottesttony - thou art cast into the green box forever.
In general The Market does not work the way you think it should. You might remember Next PLC the SP of Feb 1991 it went into free fall down to 0.33p which was its lowest I picked them up at. Now hottest of the hottest (which I’ve recently been referred to) steamed in and picked up 1000’s going against all the Hype. Take a look at the price today. I’m sure you will be pleased with my take back then. There’s someone who can verify my purchase back in 1991. There you see in 1991 Market Makers shorting the stock without good causes causing panic selling, In fact I had enough money to pay Next outstanding rent bill. But I knew I could make more on the SP. Just because the issue was over rent payments it doesn’t give rise for a SP to be slaughtered. Here i see the same kinda play at play. The M&ms will hold out for as long as they can in the hope of a bid coming in. It’s an unjust! But that’s tge way it is. if you take CB’s view he gets a headache looking at tge SP knowing what he knows according to his comments in Zacks cafe. . There’s no way of stuffing the Market Maker anymore where they would leave a junior in the office at lunch time only to find when the M&M returned and the junior accepted oversize selling deals. That what I call stuffing the market makers. If I were CB I would take XTR back into private hands.
hopefuly when it happens it will take us all by surprise
Sorry Colin, CB not CD! Getting the initials of the man that hopefully will make me rich wrong! Not a good move. Pl accept my Grovelling apology. Ha Ha!
I don't suppose they want to sell either Eureka or Bushranger as both are potentially huge. I guess they might have to but some time ago CD mentioned finance companies that wanted to finance mines. Makes me wonder why he mentioned this. Buff? Hint of a possible route to go? Firm Intention in his mind? It is bizarre we have a SP of just over 4p (and a market cap of just £37M) when we seem to be sitting on assets that justify ... well I don't know how much! A while ago people were speculating the SP might go up to 30-40p but that was before the protential size of Bushranger was suspected and CB started talking about a possible IOCG deposit under Eureka. What the hell are we missing? Is this all just a huge mirage that the market can see through but we can't? I have to keep my feet on the ground and remember that at the moment all I have is a (for me ) medium-sized investment in a very small exploration company! Those assay results are desperately needed to start proving (or I guess dis-proving) the value of BR. Mid September is now gone and we are definitely in late September and we haven't even got the assay results from the first phase 2 hole. (Takes deep breath, tells oneself to relax, don't get excited) . DYOR. GLA.
In a strange twist of fate, if both Bushranger and Eureka come to fruition, I could image Bushranger being proven up and sold and the cash being used to develop the African assets with Xtract evolving into a miner, not just an explorer.
On another matter, it is so annoying to see the sp rise through the day then have the day-traders cash out with their £30 beer money at the end of the day. So, many simply sell into any rise that's created. Still, these are such exciting times with RNSs delivering good news on such a frequent basis. This company is becoming like a coiled string and eventually something will have to give. GL ay LTH.