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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I didn't hear anything about a problem extracting below the water table. There is lots of assumption going on. The drill slippage is annoying but the JV is the most important deal ATM. Once funding is confirmed then we should see much better value. Don't know why people would sell when the SP is well below any sensible level. Chasing rainbows rarely works out.
My principal takeaway was the lack of clarity and the introduction of new issues.
GM's comments about the further boreholes - "ready to go" are disappointing when compared with the following statement from the 21/03/24 RNS: - "Final preparations are underway to commence both Aircore and Sonic rig drilling programmes in April 2024."
All projects can, and usually do, experience schedule slippage, but it is inadvisable to intimate a target (April) where there is an element of doubt.
GM also mentioned that there may be an issue regarding extraction below the water table.
I would have preferred a positive JV announcement instead of this interview.
Hopefully, the SP will recover when the JV details are released.
Please explain what you heard? He said that he didn't need any money. I take that at face value. The exact amount that Sheffield contribute will determine their share of the asset. I'm confident that the project will be fully funded to self-sufficiency. That's what he said in effect. Talk of a takeout would have to be at a high premium given that the resource is highly likely to treble or more. He mentioned around 100M tonnes at a push.
If they manipulate the share price, then 12p is highly unlikely for CMET's shareholders. If they don't manipulate the share price, then 12p is highly unlikely for Sheffield's shareholders.
Based on what he said 650,000 target would give a turnover of $133m USD.The Chinese got into the weeds over title and one imagines that SL legal system isn't straight forwards.
They have 12-14m sections over grade not included in resource. He thinks easy expansion of resource to 50-100mt so double or triple the resource they have sonic rig and have hired air core as most resource has been developed off hand auger. A digger a mobile separation plant and some trucks and they're in business. Sheffield to help them do PFS and FID early next year.
GLA DYOR
Not disagreeing with LW or Ando and frankly, given what Greg said in that interview and his demeanour I wouldn't be surprised if he's facilitating it with the backing of the Aussie shareholders - all Aussies together.
At this stage I think even 12p looks farfetched. And I can't see why anyone would step in to take a chunk of stock here. That disastrous interview, which should have been nothing but a glowing report, did nothing but raise loads of questions over the long term.
I agree with you, Bruce Griffin wanted this with LB, then he wanted a part of it with KB, then he wants it with SR, then he buys into CMET with a part of this, 109% they want a TO with the potential resource increase, expect a TO offer of about 12p ps.
We will have to wait to see what the deal actually is. I have a feeling that it will state that Sheffield will pay a couple of million for a works programme (drilling, resource expansion, etc) and any other work to get to FID (i.e. a PFS). I hope that it will also state that Sheffield will then fund the (£37 million) capex required to bring the project into funding, and commit them to that. My fear is that it won't, or that it will leave this commitment on a "to be negotiated basis" or something non committal.
The other worry is Sheffield's stake in CMET and its right to a further 5% at cheap pricing. They can easily manipulate CMET's share price now and take it out whenever they choose. You would expect Sheffield to act in its own best interests and not necessarily CMET's. What are their intentions, and will there be any kind of agreement which protects CMET from any low ball TO or manipulation.
Let's see and might be worth looking at how Sheffield has conducted itself with its other JV partners.
Anyway, all will be revealed next week hopefully. GLA
So close to being funded to production at this market cap, regardless of an interview, and people are dumping. Lunacy 🤣🤣
What's the problem. He said he didn't need any money. Fully funded. There was also a dig about getting more 'professional investors' onboard. No justification for a 10% fall...
This is what his exact words in the interview
"$37 millions is what's we all needed to getting the project self funding and $81Millions is the total Capex"
So initially we needed $37 millions to get the project started and the rest will fund from the project it self. That's good enough for me.
It was an uninspiring and concerning interview, and you can see the reaction. The concern has to be about Sheffield pulling the strings here, with CMET being put on a lead.
Surprised though, because I thought his first Crux interview was quite good, whereas in this one he just seemed quite blaise and casual in his approach, almost as if has was selling a car or something. All imo and dyor
I continue to feel confident a deal will get signed, and reasonably soon, it's the landscape after that that concerns me.
I agree this guy is clearly not good at interviews, even the interviewer looked confused at times and I don't know how CMET overcome that.
There are two possibilities here either: he gives away too much of his thinking by his answer format and apparent muddled approach, or he's just not experienced enough to deal with media. My fear is the former may be more accurate .
Today's responses have capped even my expectations of the future SP, God knows what they've done to Ando's and Sebo's.
Atom is clearly sick and an amateur. We should sympathise not chastise !! Back to the Lego/Leggo !!
Very poor show from you ATOM.
You clearly sold and now you find very cheap and baseless reasons
"Back to CMET, not looking good here as clearly we have been misled ! This will dive unfortunately"
Can you point out who and what has misled ?
Less than one million sold you think this will dive.
Very pathetic indeed
I think that a deal will be signed and that's going to lead to resource expansion and a productive mining operation. No idea why people are selling when the share price is still less than a quarter of it's IPO level. Madness before the bank holiday!
Clearly misled? What are you talking about? Misled about what? Its comments like that that just perpetuate unnecessarily. I think Im done with this board today lol
PFG - yes, you do wonder whose interests are being prioritised here. I fear that this is being lined up for Sheffield to take out on the cheap, and once they have had a chance to look at the resource. The deal is not going to be for 50%, but "up to" 50%. I think what will be announced will be that Sheffield will fund a work programme to get to FID, and then the parties will agree terms for production. Whether those terms will be announced now, or in the future, remains to be seen. All imo
Mistype! I think it is OTT!!! Don’t panic Mr Mannering 😂
Ha,ha ...........no sympathy required from you, honest.
I went with my gut instinct which turns out to be right.
Your input on the forum was to insult me with 'what a pathetic statement'. Well done, what a trooper and an asset to this forum you are.
Back to CMET, not looking good here as clearly we have been misled ! This will dive unfortunately. Very poor Greg.
ATB
I wouldnt be bothered about a few sells and the SP dipping at the moment, although i dont think these boards hold much sway with buys/sells, it wouldnt surprise me if those sells were based on some of the comments made on here. Its what we find out next week that matters, and Im not sure anything has really changed despite the views of how Greg might have come across in that interview.
Paul - maybe sell up and go dark. I don’t think this reaction to one person selling their £28k stake in 4 mins is OTT.
LW
Yes I was very put-off by his words - who the hell says we'll 'give it away' FFS!
I got the impression he's not that invested in CMET, he seems way too close to the guy at Sheffield and your fear about them getting it on the cheap feels uncomfortably realistic.
You are clearly a very troubled and sad individual. I feel for you - sort of !!
Just listened to it in full and it wasn't the best interview to be fair. He didn't come across well at all. At one point, he said that CMET were not giving away anything when you consider the upside, and in the very next sentence, he said "we might give away the upside to get the deal done." Really naïve to be saying that in an interview, and how does it help CMET in terms of negotiating its deal with Sheffield, to hear that it's leader is willing to give away the upside just like that?
Do wonder whether Sheffield are going to get this on the cheap, and who is in the driving seat.