The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
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Right.......I’m now in.........been watching this for sometime, it’s likely an update......very much over due!
So chat over down in Oz on HC it’s all about Sandfire!
Why would they originally invest, if they weren’t interested in something much bigger for their business!
Time will tell!
PC
It'll be nice to be able to follow Tethyan Resource on a UK site again - I've had their shares for a long time - I got their shares back when they used to be listed on the UK stock exchange (under a different name which slips my mind at the moment) before they moved their listing to Canada and I have not had masses of information about them since that move.
Here is our interview with Paul, CEO of $ADT.AX. Watch here: https://youtu.be/_hdg0HcQtg0
We talked about their proposed acquisition of Tethyan Resource Corp.
Cronin is confident the deal will go ahead, subject to shareholder approval, because there is a lot of value in it for Tethyan Resource Corp. 38% of Tethyan shareholders have agreed to hold Adriatic Stock for 6-months. This is "major support."
Price continues to build nicely (up over 8% today). Very good recent drill results. Proposed deal with Tethyan looks logical.
‘The deal will add Tethyan's Serbian brownfield development projects, Sastavci and Kizevak, as well as a "large prospective landholding on the Tethyan mineral belt", which Adriatic believes will position the firm "as the leading Balkan base and precious metals developer".
The deal requires approval from two thirds of Tethyan shareholders - voting support agreements have already been obtained from 54% of shareholders - and includes a CAD700,000 break fee plus up to CAD150,000 of costs and expended for Adriatic payable by Tethyan "under certain circumstances" and a CAD350,000 break fee payable by Adriatic to Tethyan "under limited circumstances".
Tethyan has also entered a deal with Serbian firm EFPP d.o.o, which holds two exploration licences which comprise "the central parts of the Kizevak and Sastavci deposits", to acquire EFPP in a two-stage acquisition.
The first stage involves Tethyan paying EUR525,000 in cash to EFPP's sellers in return for a 10% stake while the second allows for Tethyan to pay EUR1.4 million in cash and grant a 2% net smelter return for the other 90% stake. Obtaining the other 90% stake also requires the issue of 664,000 Adriatic shares in four tranches to EFPP and the payment of a EUR500,000 deferred cash payment on the second anniversary of the first half of the deal.’
Here is the link for anyone here :) https://youtu.be/RJykJpDYEdY
We discussed the business plan and what they set out to do, Bosnia as a mining jurisdiction as well as permitting; the status of their additional land and claims as well as a drilling update. Let us know your thoughts!
Hi guys, we are interviewing Adriatic Metals on Friday. Does anyone have any questions they would like us to ask? Let us know!
Courtesy of
PamplonaTrader
@TraderPamplona
·
12m
Tamesis believes (at 5X EV/EBITDA) Adriatic Metals $ADT.AX is worth over A$8.00/sh by 2023. Wild.
https://ton.twitter.com/1.1/ton/data/dm/1219460164178317316/1219460157303902208/PZvewLH_.jpg:medium
Tamesis starts coverage with 177p TP. Most "expert" commentators now expecting a bid by this time next year at AUD4-5!
Ah, I forgot: Drill results as catalysts. Rookie mistake ;)
11.3m at 25 g/t gold equivalent. Recent drilling will expand resource considerably (+20% rough estimate from @eadatt). If they can get enough tonnage to support a 1Mt throughput, Rupice is set to go.
AUD 1.70 acted as a barrier, that was broken today.
Catalysts that can & will push this even higher:
- Exploitation permit for Veovaca => validating B&H is open for business
- New land acquisitions => Locking down more prospective land in the area, something every acquirer would love to see
Uk/EU interest seems on the low side looking at the LSE volume in the first trading weeks. Forget the chart for a moment, look at the Scoping Study numbers and potential catalysts (permits, new lense at Rupice, district scale discoveries, land deals, improved economics, 1Mtpa upgrade, etc.) . Yes you are buying at ATHs, yes you have missed a great run no denying that. Most targets out there (analysts and fintwit) are +3 +4 AUD/share, still a nice profit potential no? This has been in an upwards trend since IPO and will continue developing at a fast pace. So two things here: 1/ Look at the numbers high NPV, IRR, low CAPEX 2/ look at the fast pace from IPO till today and project forward where we could be in 2 years.
Disclosure: Bought all the way up on ASX and added on LSE at 80-82p
Cheers, Pete
What’s a favorite idea for 2020, and what’s the story?
The Critical Investor: Adriatic Metals (ADT.ASX), a junior developer with a polymetallic project in Bosnia Herzegovina. Their Rupice project is very high grade, and they recently announced spectacular scoping study results, with an after-tax NPV8 of US917M ( = A$1348M) and a truly world class after-tax IRR of 107.4%, which means a wide margin of error when developing this further.
They are working on a Pre Feasibility Study (NYSE:PFS) now which is planned to be completed in Q2, 2020, and a Definitive Feasibility Study (NYSE:DFS) planned for Q4, 2020, alongside the necessary permitting which goes smoothly so far, not in the least supported by a very good team on the ground.
They recently raised A$25M, which will take them through permitting and the FS. Their current market cap is A$309M, which is less than 23% of the NPV8.
They are looking at even making improvements from scoping study to PFS, so I expect an ongoing re-rating when Rupice is being derisked at high speed. If a scoping study project stage is valued at 23% of NPV8, a PFS stage could very well be valued at 40-50% of NPV8, because of the extreme profitability premium that comes into play with these kind of projects. There's also potential in discovering even more resources as exploration is ongoing besides development, but the current size and quality of Rupice already is very rare, and would certainly generate lots of interest for mid tier producers, so I would be surprised if Adriatic Metals is still around in a year from now.
https://t.co/pzzO7qdy6U?amp=1
Guys, this is a genuine question, what makes this company worth £196 million? This is not me trying to deramp this company it is me trying to establish why another company that I am invested in is worth so little. This company gets a mention a few times as a comparison over at EUZ (Europa Metals). I know the two companies are far away from being like for like but why does EUZ only have a £4 million market cap compered to this companies £196 million. As holders here why is this company worth so much more and EUZ so little? Is it due to better projects or is it something else, better Broker, PR, management, less shares, would value your opinion, thanks.
Adriatic have just adopted the London takeover code. This means that Sandfire can buy up to 30% of Adriatic without being obliged to issue a mandatory takeover offer.
"Adriatic Metals Plc (ASX:ADT & LON:ADT1) (‘Adriatic’ or the ‘Company’)announces that following its admission of its shares to the standard segment of the Official List and the LSE’s Main Market for listed securities on 12 December 2019, the Company is now subject to the UK City Code on Takeovers and Mergers (“Takeover Code”), as administered by the UK Panel on Takeovers and Mergers (“Panel”). Under the Takeover Code, where: (a) any person acquires, whether by a series of transactions over a period of time or not, an interest in shares which (taken together with shares in which such person is already interested, and in which persons acting in concert with such person are interested) carry 30 per cent. or more of the voting rights of a company;
or (b) any person who, together with persons acting in concert with such person, is interested in shares which in the aggregate carry not less than 30 per cent. of the voting rights of a company but does not hold shares carrying more than 50 per cent. of such voting rights and such person, or any person acting in concert with such person, acquires an interest in any other shares which increases the percentage of shares carrying voting rights in which such person is interested."
No you're right. Definitely not a copper company. It's a polymetallic mine with exposure to gold, silver, lead, zinc, copper and a salable barite product so if copper doesn't go up who cares?
IRR of over 100% too and very nice recoveries to concentrate.
Well done you have made 8 times. Thanks for all the TLAs. Adriatic is not a copper company. Good luck with the construction financing.....
Thanks Richie, I appreciate you taking time out of your busy schedule to warn us about PC. Some of us bought in at the IPO so it's a shame you weren't posting on Hotcopper as you could have given us an early warning and we would have avoided only making 8 times our initial investment.
I feel sorry for Rick Rule, Eric Sprott and other North American ignoramuses as well as Datt Capital in Australia who put $A25m into ADT a month ago as they are only up 60% in a month.
Yes, those pesky poly-metallic mines are a real PITA and the concs are going to be bloody troublesome.
As for Karl S at SFR, he is an idiot wasting SFR shareholders' money on ADT and now up to a ~16% stake. Sack him I say!
Hopefully after a few more of your posts even the thickest of us will realise you are onto something and we'll accept the SFR t/o at >$3 and be rid of this useless POS.
Cheers,
T
Rick Rule and Sprott are the same entity and invest in equities and debt. I know Sprott lending and they have not provided any debt yet so they are not yet backing a production story. How do you get a debt provider comfortable with offtake, metallurgical and development risk? Answer is a lot of equity from uninformed UK investors which equals massive dilution and disappointment when the project goes badly wrong. The previous CEO was technical and booted off by Cronin who is not a mine builder. Disaster written all over this one. Investors should be seeking exposure to copper but far better and safer ways of doing this.
Sandfire is a copper company, Adriatic is not. How do you exit a polymetallic mine which is mainly Barite? There are no serious investors and they will fail to become a producer because there is no clear exit route. Mining development a very risky business, not least the financing, permitting and metallurgical risks associated with this project. Fed up with these West Perth mining spivs who are struggling to get money in Australia given their reputation. They then come to UK because they have lost credibility in Australia. How many mines has Cronin built? Answer is zero. Berkeley Energia another classic so be aware.
Sorry not the AIM. LSE. I always associate this website with sh*tty AIM stocks. Adriatic is absolutely not that.
First day on AIM and already there is a troll/deramper. Adriatic is the real deal. I've been invested over on the ASX for quite some time. Many big investors, Sandfire Resources, Rick Rule, Sprott think you are wrong.
Paul Cronin should be avoided at all costs. A classic West Perth mining promoter. His reputation proceeds him and this stock you should proceed with caution. This is another Berkeley Energia in the making unfortunately and does nothing for private investors confidence in the junior mining sector. Classic pump and dump so don't caught on the wrong side
A very good interview. First mover advantage in Bosnia is going to pay back shareholders BIGTIME!
https://www.youtube.com/watch?v=aEkZ5BE4iko&feature=youtu.be
London South East above showing the mid-price as 88p.
Hannan & Partners has issued a broker note on Adriatic Metal [ADT1] today, Thur, 12 Dec 2019.
Link: https://twitter.com/SPECCAPITAL/status/1205066601332011009
With thanks to SpecCapital for the link.
Exciting next chapter about to unfold for Adriatic metals. Congratulations to Paul Cronin & the crew on the amazing progress thus far and 2020 promises to be no less stellar a year. Onwards at Rupice and lots of exploration to look forward to in the surrounding areas.