Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
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Not sure.. but its good to see this developing, Put option gives a good safety net ..
Understanding* sorry*
My understating is that if the Port. Gov. kept the 15% then they would have to pay the capex for the mine etc (their share). So I’m hoping that there is a middle ground that both M&FI and the gov can reach.
Would be great news if on the outside chance MAFL get the 20%, The SHA prevents and debt/ funding being attibuted to Redcorp without MAFL permission, so i'm tyhinking that 20% would be quite a valuable asset
Thanks for posting - I'm suprised that didnt come from MAFL .. Starting to become clearer , as you stated it looks like a clear 120 day time limit on EDM to participate..
A news release from Ascendant uses wording suggesting that the Portuguese GOV now has a time limit to decide if they take up their 15%... Wording as below:
"The remaining 20% of Redcorp (the "MF&I Interest") is held by Mineral & Financial Investments AG ("M&FI"). The MF&I Interest is subject to a consortium agreement with Empresa de Desenvolvimento Mineiro S.A. ("EDM"), the state mining development agency wholly owned by the Portuguese Government. The consortium agreement provides EDM the right to participate in up to a 15% interest in the Project by exercising an option within 120 days of completion of the FS. If EDM elects to exercise its option, the MF&I interest will be reduced to 5% and MF&I will have the right to put this interest to Ascendant."
https://www.ascendantresources.com/English/Investors/press-releases/press-release-details/2023/ASCENDANT-RESOURCES-EARNS-80-INTEREST-IN-THE-LAGOA-SALGADA-PROJECT-IN-PORTUGAL-AND-FILES-FEASIBILITY-STUDY/default.aspx
Worth noting that MAFL Assets have gone from £2.5million to £8.3million in 5 years -looking @ £12 million by Sept/6 years, That some going .
Hi LM
Possible , but already looks at quite a steep forward discount and alot to play for with Lagoa and other investments... happy to take a mid term view on this .. JV has done a great job over the past few years and a nav north of 30p by september will start to give MAFL much more credibilty, and that has bee achieved against an almost historically difficult period in time..
Agree - Its a bit of a mismatch of expectations over timeline, but still a big deal as we have a"Collect Now" button of about 10p a share, Its good to listen to the ASND MB chat.. it clear they are moving on to construction funding ...one thing im not clear on is any uplift in NPV from the rework will be applicable to the put option ? but its good to have a real value from Lagoa on the books - Its just quadrupled and SP is down ?
Wasnt expecting to be at 17p again... seems interest has vanished from here... no liquidity
Yes just as I had thought, a NAV over 30p and looks like JV will be including this in the end of Sep figures.
Blimey, what an opp at the current 17p.
Undervalued by some margin at the moment, I think short term punters on the BFS have given a good oppertunity here
Sorry lInk below
https://www.proactiveinvestors.co.uk/LON:MAFL/Mineral-Financial-Investments-Ltd
Morning - good inteveiw with JV , explaing the NAV and the imapct of LUCA / Redcorp
Next NAV Update will be for end of june which should be higher due to LUCA and Cerrado IMO.. pushing 25p - but the Put option wont be reflected until AUgust - however with ASND complete 2nd of autust it does have a "cash out" value of about $6.8 miliion (my guestimate of the inpact of the additional compounded 2%) Taking away the $2million on the books ... thats about £ 3.8m or 11p @ additional todays rates.. so either way looks good .. not as barnstorming, but a signficant premium to todays price or they manage to grab additional 15%.. thats my take , but there must be alot going on we dont know about .
JV should be looking to include this valuation now in the latest NAV report.
So is that a NAV over 30p?
Reading the Owership status with the RNS it would appear that the 6 months date would be linked to the decsion from the EDS to participate.. 5% Put option or 20% if gov do not participate.. put option comes into force from 2nd August,5% put option is for 100% of redcorp, with or without Gov? That how I understand it, but seems to be more emphasis on the MAFL deiscussions?
Morning Lewis
Yes, Interesting how these were the items that JV raised as a comment on the first draft that forced the extention.. Ascendant appear to have got another extention by defaut by producing the BFS "subject to change".. on a postive we now have a put option valued at about $6.8-7.0 million, which isnt bad at all, but feel below the potential that the put option was envisiaged.. SHA stops any debt/funding being transferred to redcorp which is very important, and the Gov'ss stake may now come into play as part of the BFS Issuance..would like to here JV's take on this
Ascendent have been hit too; down 14% to $0.15. Their news email (RNS) is very detailed, they note this:
“Optimization Opportunities:
While completing the FS satisfies the requirements for Ascendant to earn an 80% interest in the project as required under the Earn In Option agreement, the Company believes that with additional time now available, the following near-term optimization opportunities exist to further enhance the FS prior to commencing development work over the next six months. The Company's initial focus will be as follows:
- Optimize mine ore sequencing to maximize revenues in the initial years.
- Optimization of the mining and processing rate to optimize NPV and IRR; and
- Undertake further metallurgical test work to enhance metal recoveries above those already achieved in tests to date”
From a layman, wouldn’t this, alongside more drilling be useful to increase size too?
A little mind boggling what’s going on at MAFL.
We took £2 mill from ASND and did a £250k placing which resulted in a big hit on the share price.
Now, we’ve been told a million times that the BFS will be far higher than the previous figures and now received a shocker and both MAFL and ASND are ‘very pleased.’ Market certainly is not.
I suppose if MAFL sell up, they will see a huge uplift in NAV but still what on gods earth is going on?
Personally, I hope that the lower than envisaged BFS may help with the Portuguese gov conversations (they would have been waiting for the BFS). If we can get that % then I’m happy sat here for as long as required.
I know the option is payable in cash but what about an agreed variance that a proportion of it could be paid in Ascendant shares. Ascendant market cap less than £14m so even 10% could be a growing stake for future years as resource is increased.
Im afraid the option appears to be worth less to me.
At 8% its worth about 7.35m dollars. At 10.5% it'll be worth substantially less and you've still got to turn that into sterling... And Ascendant have got to actually pay it sometime in the future...