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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Good that av confirmed mistake in the rns date for first shipment of tantalum.
Poor that the co didn't correct the rns, something material (3 to 5% of the co ) should have been rns, sloppy work by the Nomad.
As they didn't bother I'll point this out ...
Other interesting point " almost self financing from this point " that's AIM speak for we are not self financing and will require funds.
This interview, along with today's RNS, was extremely encouraging.
AV gave an indication of the potential and scale of the business as they exploit their world-class polymetallic resource in Namibia. He used language like "absolute behemoth of a resource" and size and scale "off the charts".
Possibly from my point of view was his focus on cash generation which is expected to flow from the new circuits and tweaks to the mine's processing plant, and stating that the operational growth should be self-financing going forward,
He said the Lithium (both Petalite and Spodumene) was expected to transform Andrada from a junior/small-cap into a mid-tier mining company.
They've obviously spent a few years building the mine at Uis based on the tin potential. The tantalum and lithium are essentially in the price for free, being extracted and sold from the existing ore body using the same processing plant, albeit with a few extra bits added to it.
Take the Tantalum for example. It was stated that 90% of the revenue from the tantalum sales went straight to the bottom line as it was simply being extracted from the existing crushed ore using magnetic separators. At $200k a ton that's $180k profit and with 85 tons per annum is a profit of around $15m pa just for the tantalum alone.
There was an interesting reference to the 'EU-Namibia round table', which might indicate that our preferred strategic partner might be EU-based, rather than Chinese.
(p.s. Interesting 250k trade at 5.10 reported after the bell.)
Tin
As warehoused #tin levels decrease, the tin price rises... according to 8+ years of #LME data. In the past 12 weeks alone, LME tin inventories have dropped 35%, while the tin price has only risen 10%. This suggests there's more upside potential.
With major ongoing global supply challenges, warehouse inventories are likely to remain under pressure.
Evening everyone, just got home and read the RNS from this morning. I am more than pleased with the progress being made ,Were on the cusp of a game changing lithium partnership deal at an advanced stage.Also i think the tantalum numbers of upto 80 plus tpa are more than I expected .The size and speed of expansion this coming year is mind blowing, AV is driving us to a 1 billion dollar miner ,mid stroke top tier incoming.proper excited about this investment 😀
Added to my position today on other peoples weakness .
It would be madness for investors to ignore the Tin and Tantalum given ATM will be throwing off $60m pa on this current ramp up phase from these two metals alone. This and the fact both metals are incredibly robust markets (esp given Indonesia has stopped its exports). Try and find another listed Tin producer on AIM...
Its just a slow burn and slightly unsexy company compared to a very straightfwd explore-build-sell operation for spodumene like kodal.
but, think we will get there, its just no one really cares about tin too much (unless 30k plus), prob most not heard of tantalum etc etc
but he needs to really get on with it, he still does a bit too much jam tomorrow for my liking
I didn’t think it was a bad RNS, though the jam tomorrow brigade were probably hoping for news to sell on a rise, but now they not hanging around and departing for the now.
In the scheme of things, just a bit more patience required, though in time still looking good.
All IMHO
I think people are focusing too much on the petalite comments in the RNS.
Lithium Ridge is spodumene. We have both bases covered here.
DYOR.
"big news on the horizon"
I think you missed his point which was petalite requires burning off of oxides to convert to battery grade material, which would cost something but prob not huge
The key with ATM is that its polymetallic so the Lithium will essentially be produced for free which nullifies your point about it being expensive to produce in this instance.
I am a LTH since Afritin days and I'm excited by the lithium potential but I was concerned by an interview with Neil Herbert (ALL chairman) last week. He was commenting on the future demand for battery grade lithium and said that producers were moving away from petalite to spodumene due to the cost of processing petalite. It was just a throw-away line from NH but it will be interesting to get the metallurgy results. Obviously, if the lithium price rises, any additional processing costs will be less significant.
ATM does have some spodumene but I'm not sure if there has been a separate MRE. In the meantime ATM can sell the petalite concentrate into the glass and ceramics sector, albeit the market is a lot smaller.
Just be aware. My 20000 top up at 8.06 was "accidentally" shown as a sell and all the deals at that price similarly recorded! Plus ca change!
Let the dust settle , let those to leave here as many haven’t a got a true understanding of what’s going in here. Todays update was very good and highlights why I invested here many months ago . The real journey is just about to start.
Anyone have a good reliable pricing source for our petalite concentrate ?
No worries :)
Cheers Early Bird
@coffeecups - it’s not that big of a deal. Tantalum is nice to have. It’s a high margin topup byproduct. It’s not a game changer.
If they rns march 2024 imo this bags.
If they don't....
Also FYI ive had it confirmed by the company that the 2025 is indeed a typo. The first shipment will be in the next week or so.