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Sp range pitched so as to show all trades as sells all this week?
Slight typo. It’s $387M pre-production costs required for the MoP mine, plant and all infrastructure. This will probs reduce once a GC looks into the detailed construction as it’s a straightforward decline rather than shaft mine so piece of cake with less risks. OCP will be part of this as they need the MoP and are coincidentally on the doorstep.
Testpack, $307 M for all pre-production costs for the MoP and $24M pre-production costs for the SoP plant. The SoP alone will pay back the debt finance very quickly. Based on K+S' received prices and using the estimated FS operating costs for de-icing salt from Khemisset into the US de-icing salt market, sales would deliver additional, post tax cash flows of approximately US$26 million per additional 1 million tonnes of salt sales per annum. Khemisset produces 4.5 million tonnes of salt by-product on average, which equates to nearly US$120 million per annum of potential post-tax free cash flow based on these metrics.
I trust the use of $300M twice has not confused some readers, but I believe the mine development cost is also $300M.
Micky1 posted this earlier, qoute;
o The FS, which confirmed a post-tax NPV8 of US$1.4bn and robust financials including over US$300m p.a. in EBITDA, provides the catalyst for engagement with various potential financing groups to commence detailed due diligence'
On a PE of 15:1 this gives MC of $4.5B, and using present shares in issue, gives sp of £5.53. If we assume all finance required, $300M, is raised by share issue ( not realistic), then to raise $300M would require the issue of 4.8B shares @ 5p each,, totalling 5.45B in issue, giving sp on the metrics above of 83p per share. or a 1660% increase from todays sp. This proves that I have too much time on my hands. but there is the prize for the patient.
"Building out a team with the operational capability to construct and operate a large scale mine is a challenge for any junior mining company, and I see this as one of the main execution risks to address. We will look to add additional members to our team in the coming months as we start this especially important next phase of our development.
"Clearly, our focus must be on Khemisset, but we are also aware that we have several growth options available to the Company, which can add significant value to our shareholders over the life of the project. One of the most pleasing aspects of the recent Feasibility Study was the profitability of the salt by-product. Given the 1Mtpa of sales assumed in the study represents less than a third of our total de-icing salt production - the remainder is left as waste - there is a clear opportunity for further improvement to our already first-class economics by increasing the quantity of salt sold. In addition, we intend to move our Sulphate of Potash project from a Scoping Study level of definition to a PFS level. And finally, as our current mine life of 19 years is based on only 43% of our total Mineral Resource Estimate, we will examine the potential timing with respect to bringing the significant remaining resource into the Project's mine plan, which could more than double our current mine life.
As below, this may provide a clue to the Marimaca connection.
Company focus now shifts to moving Khemisset towards "shovel ready" status including operational capability build-out, Front End Engineering and Design ("FEED"), detailed design and financing
o Permitting process is well underway including stakeholder engagement, socio-economic impact assessments and the Environmental and Social Impact Assessment ("ESIA")
o The FS, which confirmed a post-tax NPV8 of US$1.4bn and robust financials including over US$300m p.a. in EBITDA, provides the catalyst for engagement with various potential financing groups to commence detailed due diligence
o Detailed examination of various complementary growth options including:
§ Developing a scope of work for a Pre-Feasibility Study ("PFS") for Emmerson's Sulphate of Potash ("SOP") Project, which could take the combined post-tax NPVs for the Company's suite of projects to over US$1.8bn
§ Technical and market impact of upscaled production of the salt by-product in the first five years of operations at Khemisset
§ Bring the vast remaining resources at Khemisset into the mine plan by extending the overall mine life or offering the option of increasing production in the first five years of operations
Hayden Locke, CEO of Emmerson, commented:
"We are pleased with the results of the Feasibility Study, but now our attention must turn to the next phase of development as we seek to move the Project one step further towards our goal of becoming an independent potash producer.
"Despite the impacts of the Coronavirus pandemic, we continue to make progress with our ESIA, which is one of the key workstreams required to be completed prior to our application for a mining permit at Khemisset. Our objective is to have it ready for final submission to the Government authorities by the end of Q3 2020, in line with our original schedule. While we know this will be a challenge, our team has proven itself to be adept at continuing to move key workstreams forward regardless of the circumstances and I am sure this will be no exception. Once the ESIA is signed off by the Government, we will be able to apply for our mining permits.
"Financing will continue to be a focus for Emmerson. The Feasibility Study is the catalyst for various discussions, across debt, equity and non-traditional financing products, to commence in earnest. Over the last two years, we have engaged with numerous potential funding partners and have identified several which we believe would make excellent partners for the Company in the development of Khemisset. We look forward to updating the market as these discussions progress.
"Building out a team with the operational capability to construct and operate a large scale mine is a challenge for any junior mining company, and I see this as one of the main execution risks to address. We will look to add additional members to our team in the coming months as we start this important next phase of our
I see posts from yesterday evening and this morning have disappeared.
Firstly it is the same HL. A poster had suggested it is a different Hayden Locke. He has confirmed it in the email quoted and if you look at his twitter account you will see his interactions with Marimaca on there.
His salary with EML is tiny according to last annual accounts with large payment through consultancy services instead. Am sure is offering same consultancy services to Marimaca.
He is still focused on securing financing for this EML project which given his track record to date I am positive about. We also now have a miner in as our CEO and the asset is still excellent. Not forgetting HL still has 12m share options
Marimaca are about to release their PEA so a few steps behind us here. They have streamlined their corporate organisation, let go other resource assets and changed their name as all focus purely on progressing their Marimaca copper mine. Cant see any crossover in relation to takeovers as a now missing post had suggested or questioned.
HI Makes
Whats haydens email address
got a load of copper for him
youre full of