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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Agreed LW - plus Im sure Greg was talking about an expectation of not having to come back to market again for funding in the last interview.
He says around 13 minutes, same as before, give away 50% to get the project funded
Ive had a listen to the relevant bit - not sure thats how I understood it, think its just clumsy wording, but I might be wrong. Greg answered a question from the interviewer that said Sheffield "funding 50% of the project" - He didnt clarify either way what it was 50% of, neither did Greg. Greg then said "discussions about a FULL funding agreement". Im not overly worried. We'll find out soon enough anyway.
Sheffield only funding 50% of the project, with CMET funding the other 50% would make no sense. That would be like giving them their share of the project for nothing gained in return really other than bringing them in as a partner for their expertise. So I think it's Sheffield funding the initial capex to get into first production (producing concentrate), and then the project itself will pay for the remainder.
JF have a listen when you can but it sounded to me like 50% of the initial $37m - let me know your thoughts
Can't see the interview yet but doesn't that just mean the initial capex which is about 50% of the overall capex with the rest coming from turnover/profit later?
Listening to this guy Greg I'm getting a little uncomfortable - it could be his style but he seems unsure, changing things previously said, or just plain doesn't know some things.
I wonder how much he's actually been involved - may be unfair, but he's not inspiring my confidence.
Looks shifty
"A significant recent development is the strategic partnership with ASX-listed mineral sands developer Sheffield Resources. Sheffield has taken a 10% stake in Capital Metals with an option to increase to 14%, and is in discussions to potentially fund 50% of the project capex to earn a 50% interest in EMP. Sheffield's involvement provides a strong endorsement of the project and adds significant mineral sands development expertise. It also opens up the potential for an accelerated development timeline and expanded production scenario."
Uhm 4 mins in or so Greg is asked to clarify that Sheffield is ONLY funding 50% of development project.
Am I confused? But that was not my understanding, I thought it was 100%. SO now we need to raise 50% of the development funds?
Let’s hope for FOMO Friday. Will be 28th by Tuesday. Not many days left in May.
Can't be far off now, off the radar it seems...
We should be much much higher. I suppose that the market is waiting for sign-off? I hope so...
As Tim Booth once sang ‘silence is deafening’.
3 trades all day for one of the best prospects on AIM.
Go figure.
ATB
Orca is the North Sea oil right? With labour certain to get into power that probably won't go far. There must be a big reason for an £8M valuation.
PFG - okay, I guess it's irrelevant now anyway. Onwards and upwards with Sheffield, and hopefully an offtake deal with LB Group further down the line.
the market decides what the value is not us, not the ceo, not the bank manager......remember trading all started with tulip bulbs worth 10s of thousands of ££££.....worthless **** but people wanted them.......same here, same everywhere, the market will decide.
orca reported yet another stonking rns and its still lacklustre to say the least and that has over £30b , yes billion of assets under their licenced control......their mcap is about £8m...........the market has decided.
good luck all, and try to be nice to each other, we are all in this, nobody is shorting so if we cant be nice then dont be aggressive nor disrespectful to others.
ando
LW !!!
Please don't encourage this lot to descend down that rabbit hole! lol
Me too - much happier to be doing business with an ASX listed company. (Part of me wonders whether a Chinese entity was behind the licences getting suspended. It wouldn't have been a rogue minister and/or official acting alone, but would have been at the behest of a mineral sands player, whether domestic or foreign imho).
@DIbs - it could be that LB did not necessarily walked, but actually looking into the future CMET may have felt a little uncomfortable being tied so closely to the Chinese (I know I did). Sheffield for sure is in a different ballpark compared to LB, but if that's what's available and they can progress the project then we have to move on.
Interestingly Strandline has sold its Tanzania mineral sands to Shenghe Resources - another Chinese outfit.
I don’t agree with your conclusion that LB ‘chose not to invest’. We know their terms previously were to take a large slice of the company for their investment. We generally concluded that we didn’t want that to happen and seemingly the board took that view too.
I support the board’s approach and we just need a few more days to the end of the month and all will be in place.
Sheffield have already helped finance a mine, which had greater initial capital costs than CMET's. They are well capitalised and I don't think raising £35 million capex is going to be a problem for them. I also don't think they would take a 10% position in CMET and then not conclude the deal. My feeling is that CMET preferred to go with Sheffield than the LB Group, who were dragging.
https://x.com/BigBiteNow/status/1793226121011429855
The reason it’s not rocketing is because there is no Chinese money going in. It’s a relatively small Aussie producer that has taken a punt. They haven’t got that kind of money!
For me, the elephant in the room is after all that time and all that DD the Chinese chose not to invest. Why? Something didn’t add up for them. They’re smart cookies the Chinese. I wonder if their estimation of the capital costs and/or the payback were different to CMET’s?
It’s a blow to the credibility of the project that LB chose not to invest. But - even if they had - the dilution to CMET would’ve been massive. So it’s been a lose lose situation.