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Valuation-it-is, many thanks for sharing that. Have a good rest of the weekend.
Gingy.
Assay results are one hope, which may expand resources.
https://www.youtube.com/watch?v=lHX_niYJByc
Have any of you fine folk got any ideas what's going to be the next milestone to propel us north?
Not looking good
Just topped up
Will add here, wasn’t expecting the pullback but this will be a slow burn till at least dewatering is complete
Pawgee- this gives a flavour of their aims
https://www.barrick.com/English/news/news-details/2023/barricks-embedded-growth-projects-to-drive-value-with-30-percent-rise-in-production/default.aspx
Many thanks Pawgee, I will take a look. Will possibly bring UD into focus..................
Vii
Financial Times article today that might be of interest
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Read the full article at:
https://on.ft.com/3JRMDhS
More likely to see small jumps as milestones are met, but as a way off producing will probably see any rises followed by dips.
History tells me this will be more of a trading stock in the shorter term, a chance to increase positions ready for production.
At target currently but I may consider using half my holding to trade and look to increase my holding if I do see opportunities, but will evaluate on each news release.
Thought we'd get some forward momentum after the PEA, but obviously not to be.
"....assuming average prices of $3.75 per pound of copper, $2,000 per ounce of gold and $19.00 per pound
of molybdenum, consolidated operating cash flows are estimated to approximate $5.8 billion for the year 2024.
The impact of copper price changes during 2024 on operating cash flows would approximate $400 million for
each $0.10 per pound change in the average price of copper." Source Freeport's 2023 Annual report.
With copper at around $4.46/lb at present i.e. about $0.70 per pound higher, that would suggest Freeport-McMoRan Inc. will have an operating cash flow of around $8.6bn this year. Capital expenditures are expected to approximate $4.6 billion in 2024, leaving a healthy $4bn of FCF for dividends, share purchases or acquisitions. Anther to watch.
Southern Copper- 4th biggest listed mining company by mkt cap- is another one which may be on the lookout for more resources to mine. It primarily produces copper. At the moment its financial gearing is such that more borrowing is unlikely, but with copper priced at around $10,000 a tonne, the price is up some 16% on the average selling price Southern Copper achieved last year. This will likely mean a considerable increase in profitability and a surge in cash flow. How will it use it?
Broomtree - Agreed and would not be welcome here.........................
But the search for minerals by the cash rich companies is likely to accelerate. They have the finance, the forecasters are anticipating a shortage of metals, thus price increases and many of the smaller explorer/developers are priced at big discounts to their NBVs, which themselves do not take into account all the companies' assets.
Little bit early to be thinking of this as a target but certainly further asset confirmation and post dewatering it could become one
Rio’s aims:-
“Rio Tinto is at the heart of the energy transition and facing an opportunity-rich world…”
“Global trends such as re-industrialisation and a renewed emphasis on supply-chain security are presenting even more opportunities.”
“Critical minerals are vital to achieving a net zero future, and we continue to explore opportunities in this area.”
“Progressing our strategy Grow in materials essential for the energy transition”
Source Rio’s 2023 Report and Accounts
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Rio’s ability:-
Ability to borrow and Free Cash flow -
With a low level of gearing (net debt to total equity of 7.5% and free cash flow over the last two years of US$ 7.7bn, and US$ 9.0bn, Rio appears to have plenty of fire power. However, it has returned all of its free cash flow to shareholders by way of dividends the last two years paying US$ 6.5bn and US$11.7bn. Shareholders will not wish their income to be disrupted.
What to expect. Rio can make debt financed acquisitions totalling several $bn without strain. It can also offer its shares, so I think it can move to implement its stated aims in critical minerals. Beyond that much depends on the price of iron Ore and Aluminium – key products for Rio. These appear to be rising nicely at the moment.. See
https://tradingeconomics.com/commodity/iron-ore
https://tradingeconomics.com/commodity/aluminum
If these prices continue to rise, Rio’s firepower will be enhanced.
A number of the explorer/developers in critical minerals are nearing production and may be tempting targets
... are strong risers in the stock markets today. Bid action is drawing attention their way.
Taronga (Australia) -low grade (about 0.17%) mine on surface, hoping to be in production in 2026 eventually producing 3500 tonnes tin in concentrate per annum.
Tellehauser Germany grade about 1%, underground mine hoping to be in production 2027, eventually producing 3000 tonnes tin in concentrate per annum. A large amount of re-hab work needed.
I prefer to support the companies with UK mines
Vii
Do you know anything about First Tin PLC (Ticker - 1SN) ? They seem to have a similar profile to CUSN, with a historical tin mine in former east Germany (+ Australia) . Also not yet in production & with lower contained tin % than South Crofty.
Directors have recently made some large buys, so clearly confident in future of tin.
With many explorers standing at 60-80% discounts to NBV (those NBVs made with conservative assumptions), and those discounts representing amongst other things worries over whether funding can be raised, it seems that the established miners who are sat on huge cash balances, have got their pick of a load of sitting ducks. Expect more action.........
Hopefully they’ll keep aside a couple of billion to buy CUSN !
Buyers ready to dig deep for world’s miners
https://www.thetimes.co.uk/article/e025adb5-5e29-4afd-965d-bdb9f111d415?shareToken=e7635b4cb2a973d2509ab0f7ea413889
Apologies, wrong board. Not relevant for here
Gingy,
With most shares, the answer to 'What's not to like about this company' may well depend on your entry point.
Not lost all faith, but plenty to be done here and the mgmt need to start delivering to turn the tide of negative sentiment that has been weighing this down for far too long.
Good luck
It looks like the moral of the story is "load up and hold." What's not to like about this company? They don't come round like this very often. Have a good weekend all.