Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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BFS - We do not know . CEO state he needed money for BFS in January but has not raised enough for this .
CEO has given no update or progress on any RNS all year either . You would have thought he would’ve ended shouting from
The roof tops wouldn’t you
https://youtu.be/c8D_EEml02Y
Listen very carefully from 26 mins just for 2 mins , because it very clear what he said in January
£1..5m needed for power line to be up and running
£2m for electric furnace
£1.3m for BFS
From the interims recently - So how much has been raised. recently - I make it £1.85m via debt and dilution .
I have just read they also issued 500k shares to pay for some services in April since they had no money then .
So make that what you will but the recent cash raise was stated it was for the installation of the power line and working
Capital (wages), yes directors pay themselves at least about 600k + a year ) so that has to come from somewhere too
Was there any mention cash was being used of the fiurnace or BFS? .. no
BFS Just said ongoing - very vague
Either someone can prove what I have just said is not true or the
CEO is liar , I have to believe what is being said and written in black and white
I would love the share price to go a lot higher , but it fall right back after ramping brigade has gone because
Eventually the market will revert back to the real progress , the numbers . The next update may gave more info we need
But I will not hold my breath
Was delayed due to covid restrictions by 6-8weeks, so is now due anytime between now and end of the year...hopefully will get an update on 30th Oct...AGM meeting!
When will the feasibilty study take place
@Luciano, this is NOT a high risk high reward investment at these levels...
Its low risk, high reward...even if potential of main mine is not realised, the smaller mine which can still produce 4ktonnes of Vanadium a year, FAR has...as a backup even thats worth more than current SP...current mcap is 38m...bmn current mcap is 135m, they only do 3ktonnes as per their website. Thats the worse case scenario for FAR.
However if indeed the potential of the larger mine is realised through upcoming feasibilty study then you talking £££s not pennies.
As ever do your own research and judge a suitable entry!
...and so a while ago someone asked me about the cost of production for FAR.
This is my understanding from the little research done:
2018 massive profit on poultry production and high margins due to absurd vanadium price spike...thank yo very much.
2019 production increase a little but vanadium price collapse. One of the cost that affected most the profit and loss is the change in price from production chain to shipment, for 2019 it was minus $1 million this is not cost incurred is just less money for the finished product. Moreover it appear that unfortunately FAR payed its raw material to process at high price ie. 2018 price and was selling it al low prices ie. 2019 price, hence the substantial loss.
..and we come to 2020 production will double and even more if wasn't for covid19. Cost of raw material will be lower than 2019, is my understanding that money raised from the last bond and shares issued, will also be used for purchase of raw material, meaning that FAR will pay the stuff much lower than in 2018.
Still I doubt in 2020 FAR will se a profit but with production capacity reaching almost 10 times 2018....you just imagine what would happen to the share price if vanadium price next year would start to rise. We would sit on a low cost of raw material purchased this year and an increasing production volumes and price , only this potential prospect would justify a multiple of today sp....forget about Bala mine development.
In the last financial a couple of month ago I thing the company still had some 700k in the bank. They might have to rise cash or not it also depend on the cash flow which is increasing as production is increasing, anyway if any money need to be raised it would be a small amount and done at higher sp. Then again we could get a BFS out next week and financing ready a month after. Nick Bridgen mentioned that was already in talks with some financial institution but couldn't progress further due to lack of BFS...
I just wanted to shed a bit of light on few facts in particular cash needed or not and production costs and profit, because I read quite few deramping where the prospect/need to rise $1 million for this company seem the unsurmountable obstacle that will definitely bring down this company. In the other hand there are some wild sp predictions especially the one without a reasonable time frame that are a bit embarrassing..
This is a high risk high reward investment, I like it because the high risk side are attenuated by some factors like operation that is quickly increasing production, the potential of vanadium price increase (use for battery, world wide infrastructure spending spree in the green space, price of V at its historical lowest point) and not lest the cheapest capex/opex around for mining.