Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Morning
BFS finally out .. slightly disappointed with the high level number however even after adjusting NPV 10% which has little impact due to early cash flow the put option is worth $7million which adds about $5million to the current NAV after discounting the current valuation .. I think it’s now up for debate on what MAFL do next .. on one hand it’s a big uplift , but there’s still appear to be work to do to get the full potential out of the resource .. will JV cash out ?
Morning - A bit of a pull back from the .57, but looks a good solid buy and can see that going much higher over the next 6 months if all goes to plan .. Nearly 4 weeks since the extension was announced, hopeful we might get some news soon,
A gain on paper of 72% in less than 3 months…
Even at C$0.57 the warrants are now in the money by C$200k added to the C$1.25M profit. That profit is worth just over 2p per share….
0.57 going strong
https://uk.finance.yahoo.com/quote/LUCA.V/
He comes across as a real steady leader, focused on what needs to be done. Good communicator, I was impressed.
Timmit - Thanks good interview
Looking like a very good investment - 50% at these levels and looks to have some legs over the next year
This Luca update from 4 days ago...
https://www.youtube.com/watch?v=XKOkAm0oCnE
Doing well 0.53
https://finance.yahoo.com/quote/LUCA.V/
LesMouches,
Watch the last Proactive interview (link below); JV explains that the company is cash rich in Switzerland but cash poor at the holding company level in the Cayman Islands and that the Swiss GOV wanted to tax any remittances to the Cayman Islands, so the BOD thought it made sense to raise [at close to the NAV] to fund an investment they wanted to make using the tax efficient Cayman Islands structure.
https://www.youtube.com/watch?v=tQx9aX6v_Do
Hi Florence
I think that is a sensible outlook.. I'm a slightly more bullish NPV coming back to shore up he NPV to at least what was in the PEA
Positives
PEA Only took into account M&I resources, we have had a very large drilling campaign since with very positive results
PEA cash flow was all inthe first 4 years, due to the above if beleive this will increase mine productivty and the NPV over the following six years
Exchange rates long term are much more favourable
Metal prices even after large correction still above PEA
Negatives
Capex and Operating cost will have increased from PEA.
On the whole it looks good..but even $6 would be a signifcant boost
Agreed.
He could easily run his mouth about the put option but I respect the fact that he’s keeping it in his pants until he has the official feasibility study figure from which to take the 5%.
For what it’s worth I believe it’s carried at around $2m but true value is likely to be $6-10m.
So we can add at least $4m to today’s £8.4m NAV.
Plus whatever we think a Hail Mary for the government’s 15% is worth!
Not any surpises in there goof ot see it upto 22.5p - I think Lagoa holds $1.5milion within that, I like the way JV doesnt speculate at all.. this snippet belwo give update on minor developments
Our most recent significant strategic investment of 5.7 million shares of Luca Mining was made in the first week of April 2023 at C$0.35 for a unit composed of 1 share and 1/2 warrant exerciseable at C$0.50. Luca is not part of the current NAV performance, as the investment was made after the end of the current period under review. Luca shares, as at 5 July 2023 were trading at C$0.51 per share. The Company also received shares from the spin-out of Terrasun shares from Golden Sun Resources. Terrasun which holds 17 exploration projects, several of which have historical resources, also owns owns a mill and 6 drill rigs. The Company owns a little over 5% of Terrasun and internally values this investment at GBP197,000.
Thanks Timmit.
Timmit,
Thanks; that helps explain the UK Export Credit Agency's interest. The 40% threshold seems a bit low as a taxpayer though, especially as it is likely to benefit a small group of professionals [lawyers, accountants etc] who are adept at tax avoidance.
Brief update from Mark Brennan about the potential UK Export Credit Agency Project Finance at Cerrado Gold
https://www.youtube.com/watch?v=uXvxCGwF6ps
All Good, and if it the case that UK is actually think longer than 1 month ahead them its good news also - about time .. not heard of the UKEF before. time ticking along
I’m surprised the market is not as enthusiastic as the UK government!
It's the same facility that was used recently by the Indonesian government to fund a contract with SRT marine systems to provide $180m of maritime security.
I think it's a response to the recent realisation of just how vulnerable the UK (and the west in general) is to relying on hostile nations to supply us with natural resources. It seems prudent to support the development of mining in friendly countries.
Same is true of Cerrado Gold announced today - another tie up with the UK Export Credit Agency worth potentially up to US$610 million in Export Credit Agency ("ECA") support via long term ECA Project Finance to cover up to 70% of pre-production costs plus additional support to cover Interest During Construction and Insurance Premium Costs.
Looks like Mark Brennan is probably the common denominator in these as he's CEO/Chairman at both companies...
https://www.cerradogold.com/news/cerrado-gold-announces-potential-uk-export-credit-agency-support-for-project-finance-at-its-monte-do-carmo-and-mont-sorcier-projects/
Does appear from the below that this is part of UK Strategy to source comodities ?
UKEF's Expression of Interest will encourage a UK-led sourcing strategy while allowing flexibility for sourcing from other countries. Support available subject to standard project finance terms and successful due diligence.
Sould help ASND SP - had a kicking over these delays -should restore a bit of confidence for thier investors