Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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The so called sale of Glenevor and the over due drill results
Your : "Surely we should be getting a RNS next week" Regarding what Billy?
Surely we should be getting a RNS next week
We should remember we have a substantial amount of licences for the kalahari, lots of drilling over our 23km potential strike, I woukd expect CBs main focus woukd be this, he is craving a good company for copper, so far he hasn't hit the motherloade, he is hoping with us he will, hence his holding, the licences we are currently focusing on are targeting high grade areas in a close vicinity to the sandfire mine, these should be easy to monetise without to much drilling, im sure sandfire would prefer to quickly grab the licences that are close to the mine, makes their product cheaper in the long run, until we have drill results I guess there's not really much he can say about the Kalahari, if we are drilling still it can't be long, Cobre finished there's a week ago and was on a similar size although on rc drilling, CB has already mentioned that there are delays for unloading at Chinese ports, so we should take this into consideration also, good to know a few cards have fallen into place for us, we should bow get and have the money to forward the Kalhari, furber n ka****so or whatever its called, I like the sound hlof the high grade zinc, not sure on furber but in a great jurisdiction ie US, as frustrating as it is, we have to wait, but atkeast we know we shoukd be getting some good news regarding star zinc and the sale of glenover with our wild card and potential company maker the Kalahari. Hopefully we have the drilling news by Xmas, it isn't long now anyway.
Hi CE,
Was the AGM very crowded?
True didn't think of it like that! Did CB not go into anymore depth about the kalahari
You are lucky to get over 5% of the in-ground resource value when you sell a company - so no great surprise there?
Over 10x less than it was valued!!!
According to CB the sale price is likely to be around £30M - we only own 36% of it and the £6M is the net figure he came up with after taxes and expenses. Of course he could be out by one or two million in either direction...
Yes I would like to think so too! Do people actually think a possible full sale to SFR is possible? We should of had drill news by now don't understand what is taking so long
I struggle to believe the total Glenover sale price is $6m - that would be hugely disappointing. The NPV back in 2012 was in excess of $500m - so a sale value of $6m would represent a >99% discount to an NPV that CB admitted very recently had increased in value due to shortages both in Phosphate and REE. Given the stockpiles on surface that reduce life of mine costs, i would be saddened that $6m would be the whole picture.
I tend to agree (and hope!!) that the $6m represents an upfront payment that we can use more or less immediately for drilling Ka****su and Ferber, and Botswana if the results indicate they are worth it. This then followed by royalties for life of mine.
Yep, and let’s not forget that Royalties can be capitalised too with this company buying up a lot of them: https://tridentroyalties.com/
Would fit in nicely with a scenario in which CB eventually liquidates most if not all of the assets.
I suspect knowing Colin, he will have some royalty attached to any sale process similar to Star. Offload the asset for a nice few quid then attach a deal to it for future monthly income. All helps us become a nicely self funded machine.
I do wonder if the ultimate plan is to allow SFR to just buy us out too once we have streamlined a bit, hence the detail in the RNS
My bad Oiltap. I meant to refer to Ka****u
I’m just thinking that they are now incentivised to sell off the assets one by one until they are just left with the copper. Then sell the company to Sandfire or another copper producer once they have proved up a resource. Hence any decent drilling results should have a very positive impact if that is the strategy. CB setting things up nicely for his retirement imho.
The incentive scheme together with the disposal of Glenover and CB exercising his warrants says it all to me. mThere are going to be a number of corporate events which will bring huge rewards to us all and selling off Glenover is just the first step in streamlining the company for sale.
Ferber next anyone, then Star Zinc and finally the copper once drilling has been completed?
Haven't even noticed the RNS until now. Will have to read later.
Just about over the line with regard to a breakout but the margins are so fine it's hard to be sure. Incredibly frustrating. If it is the sp should move northwards tomorrow. If it doesn't I'm going to keep my mouth shut until I'm 100% sure so as not to hex it !
Looking positive though
There has to be an RNS on the way just to confirm all resolutions were accepted at the AGM etc.
Strange that there's a delay and we can maybe hope a little that there is something else to precede in a separate RNS.
Bit of limbo
Thanks for the feedback CE. Seems that GLR will soon be in a very strong position to scale up the drilling in the KCB and subsequently produce a hopefully mouth watering MRE. What’s not to like about that?
My 183k top up showing as a sell so don’t be put off by that!
Once tax and deductions have been made, Colin expected to net about £6M from the sale, and I guess he should know?
During the meeting Colin admitted that a candid general update covering all projects is long overdue and said that he would look at giving the market a full update.
Lots of news over the next couple of weeks then, hopefully )
The sale has not yet been completed but is expected to be agreed in the coming weeks and selling price is expected to be around £30M.
Still awaiting update on the Kalahari, but drilling of two target areas is a priority. Cost of drilling, including assay, is about $200 per metre. By my reckoning, with our current CIB, that means that we should be able fund a 10,000m - 15,000m drilling programme.
CE
Any news on the kalahari ?
Thank you CE for the update. Would have been nice to have caught up again.
Cheers