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CMET is sponsored by one of oldest and most well-known names in the Far East, KLK, and they won't sell unless it makes sense for them. I do not know their holding but I expect it to be very substantial. That's what originally got me interested in CMET. I believe they want the long term income stream and another 'string to their bow'.
In my opinion increase of resource won't be a problem with
A. The issues we have had to face from that quarter, they are due us.
B. The tax monies, local employment and revenue/spend that brings
C. The precedent is set, other companies have it.
I recall this, but was this not based on the full NPV of the project, but we will be signing 50% away most likely.
Agree with Paul below, they need to analyse and lobby the Government to increase this resource from what they are currently looking at. Then maybe we could dream of 40-70p.
All in all though, great to some movement on this and looks like a good link up with Sheffield in terms of company and also the people having links to LB group.
Technically it's correct as all buys are sells by someone and all sells are bought by someone
I seem to recall the CEO during an investor meeting saying he thought it was highly likely to get a re-rating of 40-70p a share, so maybe that’s the range the think is fair value.
Didn’t an analyst give CMET a 30p rating ages ago?
I also think bid for the whole company will be an option for both LB & Shefield.
Look at these numbers
"The Project has highly attractive economics with post tax NPVs based on the 2022 Preliminary Economic Assessment* ranging from US$155-235 million, capex of US$81 million and Base Case total revenues of US$645 million over an initial 10-year Project life "
What would be a offer for the whole company based on the above numbers ?
...shows now as a sell, so expect most of others at same price are also buys. Not many sells today I expect!
If there was real appetite from both of these companies I'm wondering if we could even see a scenario where they bid for the company itself - Sheffield already snapping up 10%. That would mean getting the LTH big aussie whales onboard and I can't see them letting their stakes go for anything near the current MCAP.
What would have helped the valuation, in that scenario, would be have been more exploration and a much expanded resource - which is what I've been harping on about since the beginning of time, it feels like.
Hey SEBO no hard feelings buddy, I'm pulling your keg but expect the 60 days to be half of that, LB will not want to gamble on losing their position as priority investor this will have put the cat amongst the pigeons at their end. I expect them to make an official offer by no later than 20th April. Don't want to be excluded and beaten to a deal by a former competitor, the head guys of both companies will know each other and know they are serious players moving I to position. I also think Sheffield are just positioning themselves for a great LB offer, of which they may own about 15% , therefore in swift time (12 months) they can potentially multiple by 10 their investment . The chess has begun , the the games commence and we sit back and think of sunshine retirement
That’s an incredibly useful fact! Given Sheffield’s CEO was an SVP in LB Group is going to count for something as he will have existing relationships and maybe able to assist CMET in bringing both to the table.
I think this is strategically very useful for CMET!
....to 275,000. Good old Greg Martyr. Would have bought more but limited cash. These are at last going places -hopefully in Sri Lanka!
Sheffield Resources Executive Chairman
Bruce Griffin most recently held the position of Senior Vice President Strategic Development of Lomon Billions Group, the world’s third largest producer of high-quality titanium dioxide pigments. Bruce previously held executive management positions in several resource companies, including acting as the Chief Executive Officer and a director of TZ Minerals International Pty. Ltd. (TZMI), the leading independent consultant on the global mineral sands industry, World Titanium Resources, a development stage titanium project in Africa and as Vice President Titanium for BHP Billiton.
https://www.sheffieldresources.com.au/site/about-us/board-management
It’s got to be within 60days based on that RNS :-)
It’s going to be difficult to build a decent position when one of these funders commits.
be nimble. last non strategic placing was 4.25p
Who would have guessed a Friday? You were expecting one and we got an update. When is the next one then?
I’ve been holding onto my 1/2m shares and have no intention of letting them go yet - I think this is heading to production now and this could be worth 20-30p a share in 12-18months
Quite agree. Sheffield has invested at 3.623p so that should at least be the bottom price here. A podcast would be welcome to get things moving.
SEBO10...........I accept your apology for shouting me down and claiming what I said was BS.
I was right and you were wrong.
Attached at the top of this site is indeed the RNS I promised would be released this week.
Your welcome,
Now don't question the all knowing one ever again.
Excellent RNS with competition generated for the funding of the project. Seems to be a slow burner, in terms of investor awareness, with a few weaker holders cashing in, sp should respond over coming days.
Reassuring RNS’d news!
I’ve been lurking in the background and being quiet for a while (a miracle!).
I’d love to be a fly on the wall and hear how LB Group are working this through - I’d suspect they’re busily running new numbers and feeling some pressure!
The exclusive agreement expiring strengthened their hand. They’ve now one potential funder investing into co, and another will be busy with their calculations again now.
Will be tens of millions in two stages to get them in as per the terms, if Sheffield proceed.
Placing with longer term investors just a few month ago at 4.25p. They won’t be short changed here in my opinion
More money, now, in the bank -what are they doing with these funds apart from increasing headcount and overheads?
60 day potential countdown, at least until exclusivity expires (not totally sure how much of an impact that'll have)
Also, Sheffield Resources started shipments from their Thunderbird Mineral Sands Mine in Western Australia in January of this year. They shipped about 5,400 tonnes in January alone so they've started to generate revenues to support their expansion. They've got one other resource in Brazil but their company statement indicates they are "focused on assembling a portfolio of global mineral sands development and production assets to generate cash returns and growth.". Sounds a great strategic fit...
I think this is very good news. It puts the pressure on LB who have been dragging their feet, for a better offer. It puts financial support behind the project, technical expertise and a back stop to the share price. The project is happening so risk is reduced.
OKAY PREMIUM raise is always good, not sure I'm too keen with their option for more below 5p - if things move forward well in the next 12 months that should end up be a significant DISCOUNT.
This will catch everyone's eye:
"Capital Metals has conditionally granted Sheffield the right to acquire up to a 50% interest in the Project in consideration for Sheffield contributing development capital by way of joint venture equity ("Project Funding"). The maximum final Project Funding amount will be negotiated during the due diligence period based on the agreed forecast to production, and will comprise two stages:
(i) an amount of funding to be provided at the Project level which is sufficient to reach a Final Investment Decision; and
(ii) the balance of funding to be contributed at the project level to support the Project into production."
Will be interesting to see what, if any, LB's reaction will be.