The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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A timeline is a good question, sooner rather than later perhaps, based on the potential reasoning behind the podcast. But could well be getting the wrong idea. Oct/nov was mentioned.
The one thing I would go as far to suggest is, that as AA have first right of refusal, it may well be that the market and particularly any other interested parties, will not be shown any of the modelling or conceptual study until after AA have been formally approached and a decision of their intent is made.
I don’t know, but it sounds the likely scenario to me ???
Just my opinion but I think copper is the best play out there and it would be crazy to sell this now on the cheap.
Thankyou for clearing that up somewhat everyone so what's people's thoughts on timeliness for modelling etc?
>>>correct me if I’m wrong,
Not at all, really good synopsis zero matrix.
It would have put them in a stronger position around the negotiating table to have hit the 2mt and to have declared the decision to mine together, which is a Oz term ( iceberg first noted) but as long as one of the criteria is met, that it what matters.
Certainly worth pointing out that Xtract have ‘no’ inclination or intention to mine the project themselves whatsoever, either solely or through a joint venture.
Far too big an undertaking in sheer scale and amount of finance required to even take it to feasibility let alone the 1.5 or so billion to take it to production.
What makes this a compelling investment, is the ‘high probability’ that it will be sold, as there is a very good chance Bushranger will go on to be mined, unlike the many projects that get parked up in the hope one day they will become viable.
Is in a mining nation, a friendly jurisdiction with a government that is openly supportive of big mining projects.
Within a fertile porphyry region of NSW nearby to Cadia ridgeway.
Multi mineralised, multi porphyry system similar to Cadia.
200km from main port of Sydney.
Close to the big town of Oberon
Nearby a dam with high voltage power line that cuts across the license.
No disputes over land rights in the area.
Not in an environmentally sensitive area that is likely to cause conflict with protective species.
I could easily go on…
Decision to mine, is I believe, just another mechanism that is there. So Xtr can approach AA & formally ask them if they want to activate the buy back clause.
I am sure that AA would know that a junior miner, such as Xtr would not take a project on, as big as BR will be.
Now it makes sense
I’m a little confused myself, are they going to mine themselves?
Art, I have always puzzled about this strange term 'decision to mine'. as it seems to have no relation to the the explorer's intention to mine it. In most cases they wouldn't have anywhere near enough funds to do that anyway.
I think what it really means: "we've looked into this prospect enough now and it seems viable. No more investigation ... its time time mine it. Anyone want it?"
The alternative of reaching 2MT in the AA agreement may have been a get out for XTR to say "look ... 2MT!! Don't make us spend any more time proving this up please ..."
Thank you, Steve4077 & others.
I was just hoping that it didn't mean that XTR and Mr Bird were going to set out to mine it themselves. I am very relieved and also fully understand what is going on but I was just confused by the use of the terminology. Cheers.
Sienna39:
My take is the modelling will have been ongoing,not something they've been saving up to do in one go.
Once they have a model to work with they will announce a decision to mine and an invitation to AA to make an offer simultaneously in an RNS and an offer to the company.
The general feeling seems to be that after the modelling is done the resource will not meet that 2MT target. However, Colin Bird did in fact say in the podcast that following the completion of the model XTR will announce its decision to mine, thereby triggering AA's opportunity to make an offer to buy the resource back.
Correct me if I am wrong anyone ... but this to me took away a lot of uncertainty. It now seems the case that the model is forthcoming, the decision to mine will come with that, and AA can decide if the size of the resource, and its viability, are worth buying. If they choose not to buy the resource, or if they offer unacceptably little for it, the sale will be open to allcomers. And it is generally considered to be a resource that will be in demand. We no longer have to worry about not meeting the 2MT. less tonnage will still make for an economical prospect. Its just the price achieved that remains to be seen now?
It seems you understand Jez and do you think it will be when they release there so called number crunching that they are doing now that will trigger the AA first refusal option?
In a nutshell : AA get first refusal on purchase of the licence as per the puchase agreement when XTR bought it from them. There is much conjecture regarding the next bit: When XTR announce a resource of 2m tonnes or more, or upon XTR issuing a decision to mine AA have 10 days ( I think) to make an offer to purchase, if said offer is rejected then the licence can be offered on the open market.
There has been pages and page on here of exactly how this will happen that I haven't got the time or the inclination to go into !
It means they have a viable mine under the Valmin code. There is no requirement to secure funding first. It also triggers the AA buyout option, which is the main reason to announce it.
Just one question please, anyone. What is the 'decision to mine' that he has mentioned before and again today?
News could come any time. One day we will have an RNS and many will miss the boat.
20p Min IMHO
Thank you
Any links
When was this podcast? Was it today?
That £50k sale is a big discretionary purchase, especially in a stock that is bumping along the bottom with apparently few cheerleaders banging the drum. It certainly doesn't give the impression of a tentative toe in the water. I take a lot of encouragement from that, especially after CB spoke fairly freely at the weekend.
You were right the first time. Bushranger is set to become the 8th wonder of the world :)
Obviously meant "I"wonder, not 8 wonder
Very interesting trades all of a sudden, 8 wonder?!
also 500k at 3.4 and 500k 3.45 both just prior to the big £50K buy
News tomorrow??