Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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Vii
Many thanks for reminding us of Sir Mick’s perspective when buying into CUSN. IMHO, given the trajectory of the tin price, I think Sir Mick may exit when the price is well above £. Just my opinion & a bit of time will tell where I am on this.
GLA
Natnrg
3 to 4 times his buy in price of 18p would equal 54p to 72p. That would be before the impact of the rise in the tin price.
ViI Thanks for reminding us of Sir Micks Comments. I remember this being shared before, but couldn't remember the comments. I think at the time someone worked out a rough share price based on his buy in and these comments for his exit.. can anyone recall this?
Https://investors.cornishmetals.com/
Just in case anyone needs it
Signed up.
Good to see a company that wants to engage with it's shareholders.
Sir Mick's game plan......................
Here s an extract from an interview with Sir Mick Davis, whose Vision Blue Resources put £25m into CUSN
Question :- Generally speaking, what kind of investment criteria are you using to look for these opportunities?
Sir Mick:-
It all starts with the rocks in the ground, just to be very simplistic. I'm looking for the best quality resources that I can find. I look for resources that have been well-defined.
Then, I'm looking for high-value, low-volume commodities. My experience in the past running large mining companies is one of the big drains on the value proposition because is if you have to establish a large logistics system. You can only make it pay if you have a very large mine.
I want to be in geographies in which I understand how to operate. They can be complex geographies ... but I need to know how to operate in them. I need to know that I can identify and mitigate the risks.
The third thing is [that] I want to be able to know that I can enter into that project at a 0.2x, maybe 0.3x net present value. Then, put in the capital required for the project to progress either to feasibility, or feasibility to construction, etc. and inject my team into the investee, so that I can make sure that they are managing the risks associated with bringing up the value curve.
By the time we get into early-stage production, which is the time I would like to exit and hand over to the major mining companies, I consider maybe 0.8x to 1.0x NPV and therefore make my 3x to 4x without having to make an assumption about what commodity prices are going to be.
I'm looking for commodities that essentially talk to the energy transformation and the [environmental, social and governance investing] narrative. There is a hell of a lot of institutions that want to fund those sorts of projects. I essentially want to be the person who feeds the ducks that are quacking for that.
I don't think Richard Williams has gone completely, he's still consulting going forward. Maybe the reason for this is when news of the the PEA comes out, someone's going to take us over. Was that the plan all along?
A fresh update on Cornish Metals: https://www.youtube.com/watch?v=zOUn04kdyak
With all the components used in the transition to renewable energy and EV, and the lack of tin commodity, it seems very much under priced. What's not to like? Good luck all.
Https://markets.businessinsider.com/commodities/tin-price?op=1
How long will it last?
If the US decides to re-build its strategic stockpile, it could be a long time. If investors agree that the market is going to be short of tin, they will buy in droves too. If Indonesia and Myanmar continue as they are that will also increase the shortage. In any case there has been a little investment in bringing new tin mines on stream in recent years.
Tiny amounts of tin are used in billions of items. The cost of making those items is hardly affected by the tin price. i.e. demand for those items is little affected by the tin price. You have a number of driving forces which could send the tin price much much higher as we have seen happen before.
CUSN as an investment has a highly geared exposure to the tin price. The conclusion is obvious....................
Gingy
that's the golden question,how long will it last.
copper aswell....https://www.bloomberg.com/news/videos/2024-04-10/copper-to-rise-30-in-next-12-months-bofa-s-blanch-says
but atm,the tin price,seems to be on pole position.
(tungsten miners?....getting them into production,is a nightmare,as a couple of posters below,will tell ya)
Hi Troajan, thanks for sharing this. It's all positive news, let hope it stays this way. Tin price looking strong which has got to help the cause. Good luck with your investments.
3 mins in.....john meyer on tin/cusn
https://www.youtube.com/watch?v=-LGCV1ccFOM
Also interesting that volume of trades in Canada today (1.2m shares) are by far the highest for the last 12 months
That hefty last trade looks like a buy from yesterday!
Definately something materialising. Interesting we were closer to 5p at the start of the week.
Be interesting to see who they have lined up as the new CEO to take this forward.
I know it's a silly question, but does anyone know, if all comes to fruition in five years time, where the share price could be? The more I research the company the more I get excited! Have a good weekend all.
Follow the yellow brick road ,
I would say: right time at the right place and "Say no more..." just use an opportunity....
I would say: right time at the right place and "Say no more..." just use an opportunity....
Looking strong, let's hope it continues. It's good to have someone on board with good knowledge like your good self. Thank you.
I feel if all our ducks are in line we will see a re-rate of the current share price. I think a lot of potential investors are waiting for the PEA report, then they will pour in.
Jeffus888
Your timing looks great. The recovery from the shock news of the resignation of the CEO is underway, and the more recent erroneous rumours about flooding in the mine have been addressed by the company broker.
Meanwhile the price of tin has had another boost rising 3% yeaterday to $32,775.
Plenty to look forward to:-
1. The publication of the PEA, with a revised NPV. This is expected to arrive before the end of June. In my opinion it will show a valuation for South Crofty alone, of multiples of the current market capitalisation. As discussed before, to that NPV, the value of rights elsewhere (e.g. UD) in the CUSN portfolios should be added, together with value inherent in the arrangements with Cornish Lithium, when comparing with the market cap.
2.Feedback from the exploration programme. This is likely to come before the new PEA, as results logically should be incorporated in the PEA. The exploration programme will give a good idea as to the extent of mineralisation in the newly discovered Wide Formation and Great Flat lode splay. This will have a bearing on the likely mine life.
In my view, there is a good chance that the mine life may be extended with a considerable benefit to the NPV.
3.Interest rates. Next month the Governor of the BoE expects inflation to fall sharply. This will increase expectations for the first interest rate cut. This is likely to be beneficial for valuations of companies cash flows. Also it will be likely to increase those cash flows as interest costs or expectation are reduced. As CUSN will be moving towards its production decision, this is coming at a very good time for shareholders.
What might have an adverse effect?
1.If the disruption in Myanmar is resolved and exports pick up, there might be some relief amongst tin traders and tin pries might fall. However at present the opposite appears to be the case.
2. Faster use of cash than expected - Await half year results in the Autumn for this. The company had a net cash balance of C$25.8m at the Dec 2023 year end. So appears to be well able to complete the tasks set out - PEA publication, drilling programme and perhaps also some preparations for mining such as dewatering and shaft refurbishment.
3. Any signs of management disruption. The loss of the President and CEO came as a shock to the market. As long as the operations management team settles - especially that of the COO, CFO and CDO, all should be well. Any sign of further disruption is likely to be taken very badly.
I bought my first shares in this 9 days ago. I am 19% up. I feel like a crypto bro.
Bonkers99
Whilst a lot of costs are indeed up 50% don't forget that a big chunk of cost saving is likely to be achieved by using the XRT sorters. Their use will be likely to cut the cost of the the plant required very significantly, so big outflows of cash at the onset and thereafter will be removed from the NPV calculation. Hopefully, the saving both in capex and in opex will offset to a considerable degree the impact of cost inflation since 2017. All will hopefully be revealed shortly!