Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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If they’re going to stick to investment news then at least mix it up and hear on fodere. Their Zambia pilot plant is supposed to be in production this quarter and ideally news on S Africa to..
All interesting stuff but can we just stick to discussing BRES please chaps ;)
TIA
Well there’s not exactly a whole load of recent RNS to work through! We’re at mine build decision stage which basically means obtaining and evaluating financing options. It was advised at the half year statement at end of June that would 3mths-9mths I.e. be sometime in either Q4 2022 or Q1 2023.
Most important and potentially exciting stage of Pitombieras project to date. They’ll be NDAs in place during negotiations and BOD are unlikely to show hand whilst negotiations continue.
Should involve discussions with offtakers as every project needs someone to buy the produced product. That ideally would be a local offtaker as circa 75% of the logistics costs relate to port handling fees and shipping cost. Logistics is $10.8m of the $17.9m opex (year 1) as shown on page 33 of company presentation, clearly big incentive to try and get local offtaker if possible! Then of course negotiations on whether that offtaker would advance cash for mine build in return for discounted product when producing.
Other financiers/partners to either cover 100% of the capex of the remaining after offtaker advance. Might be preferable for 100% from such partners, or as little as possible - depends on their terms vs offtakers terms.
Then there’s chat with government over state support. Again on page 33 it’s possible to see current economics equals tax circa 33%. Tax incentive programmes for first 10years of mine are available for NE Brazil projects so hopefully BOD is negotiating with them to.
Or alternatively maybe they’ve had expressions of interest to buy the project, at which point those negotiations also going on and once all options in decision made.
Whatever the outcome I’d hope for update this quarter, anytime now really! Valuing/realising value of much more than the £10m pitombieras valued at current MC
that made me chuckle this morning
Yep, we all know. Just have a secret pact not to tell you..
...an idea what is going on. The silence is deafening!!!!
Indeed DCat. In another article displayed in your link, the following quote is telling:
“ One of the top priorities for the next administration is the fact that Brazil needs to encourage mining exploration and for that we need to ensure that mineral titles are a guarantee to finance this activity. That would enable this activity to be taken on by small and medium-sized companies," Marcos Gonçalves, president of mining technology association Adimb
Lula’s economic team may not have gone down well with the Brazilian banks, and his fiscal rule changes are a concern, but consensus suggests mining is safe from too much Interference.
Glencore offtake with CSN including $500m advance. It’s almost like they also have confidence in Brazil….
https://www.bnamericas.com/en/news/brazils-csn-mineracao-concludes-new-financing-deal-with-glencore
Sir Mick Davis knows a little about mining… Decent investment just made into Brazil REE project…
https://m.miningweekly.com/article/vision-blue-and-emg-put-150m-into-brazil-ree-developer-2023-01-12
Hey Riosurfer remember me??! https://www.bbc.com/news/world-latin-america-64204860
https://total-market-solutions.com/2022/12/12-mining-companies-to-follow-in-2023/
The findings of the DFS/Technical Report are laid out in the RNS of the 21st April this year. The next issue will be another DFS that includes more detail on the Tioxide portion of the ore as this part wasn't completed to a DFS level at the time.
As of now I'm not sure that that has been completed. If it has I'd agree, it should be issued without delay.
Anyway..... would be nice to have an end of year statement
it would be nice to hear results of the dfs though. If done, that should be in the public domain. If not done, we should know why.
Brian did say it would either be this quarter or Q1 for hopefully offtake and financing,traders have no patience,they must all be selling at a loss
Buy some stock and the sp goes... down? That's right. Today's price action is not caused by selling volume. 4.16 was my BUY.
It's NT to sell... all by design. MMs trying to create liquidity in an illiquid stock.
Golden cross incoming, indicators showing good value, due a tidy rerate in the foreseeable future.
MMs will open up the bid at some point and the more distressed PIs who capitulate, the more energy will be taken out of the coming rise when the buying pressure is back on.
Simple fix: Hold on to your stock and buy a few at this month's best price. Let MMs deal with illiquidity by RAISING the bid, not the other way round.
...of an update this year???
Sounds good to me!
This is a key steps towards commercial stage production testing in a pilot plant facility. It also highlights the potential to increase the percentage of the more valuable co**** flake products through further optimisation of the processing circuits and this will be considered in the next round of testing.
:-)
Iron ore price been moving well in recent month and near 6mth highs. Obviously expect this to continue if China moves away from the zero Covid policy in Q1/Q2 as expected.Next year could be good time to be starting production. Hopefully all pieces are starting to fit together behind the scenes and we get a series of updates soon..https://www.mining.com/iron-ore-price-rises-on-china-property-support/
Sure they’ve had more than enough time to get the Tio2 stage to FS std, but we should all know economics change with local offtaker &/or tax incentives. Alternatively as you suggest being tied in with deal covering all financing. If any further benefication was going to be done then Brian did say most likely funding would be combination of offtake and industry partner.
i can't believe that the updated DFS is not ready yet. They may be trying to delay it for funding etc - however, if it is done it surely has to be released.
It would look that way...... standing in the street at high noon though, you never know what deals are going on in back room of the saloon.
You gotta ask yourself one question...... do you feel lucky? Well.... do ya?
in this 'ol town but rollin' tumbleweed and the sound of the wind....
Can't buy a penny
Up 14% on tiny volumes!! Incredible
BF, I hope you are right. I mentioned before, the silence is killing us... lol