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All looking like the fruits of the hard work are starting to ripen .. Aonther point of note is that our stake in asendent is up over 50% and touching all time highs ... Roll on FS - Cheers
Having a few million in cash at this stage of the mining cycle is a big plus investing in decent but distressed companies.
Lots of value out there and JV picks are great.
From the annual accounts
"The next phase is to progress from small leach pad production to a 450 tonnes per day CIL plant, which could result in production exceeding 35,000/oz of gold per year. We believe that GSR could receive the project expansion funding via a streaming agreement with a well-known NorthAmerican mining financier in the near term, although there is no guarantee this will occur. '
Probably worth a conservative $1m a year in gold to MAFL based on a $500 an ounce profit. I expect that Golden Sun will not be paying any dividends, just growing production through reinvestment.
Well done BOD / JV
https://twitter.com/Baz9707/status/1625833289314365440?s=20&t=euHE01Ga2c-vMkz09-jA-A
Golden Sun update:
Sprott 10m finance
400 tonnes per day Carbon in Leach (CIL) mill finished Mar 2024
Loan repaid ??
42% increase in value from Y/E NAV ??
$1.6M value at Dec 2022 funding round ??
Royalty payments negotiated
5.2% owned #MAFL
Not too shabby for MAFL though which does historically suffer from poor liquidity.
not huge volume - maybe someone adding - but agree we have see a pattern before an RNS ..its just not easy to buy in any numbers without moving the SP - Have a good weekend
Session closed and I’m off the step.
Closed at 19.25p on very good volume.
Headmaster - it may not be the 15% but I’ll bet a dollar someone knows something.
It's picked up the Uncrossed Trade at 11:00:07
Should come out in the wash at the close, hopefully...
How can the "price" here be 16.70 when the b/o spread is 18.50/20.00? Normally it is the mid price?
Shaz: sorry, did not mean to sound too headmasterly!
Giveme: Actually the FS was due by Dec 2022 but was announced as contractually extended to Jun 23 because of the further drilling plans and, I believe, the wish to encompass as much as possible. Ironically, we now learn from ASND that it will not include some of the more recent drill results (so those would provide future icing on the cake).
Quad - I’ll sit on the naughty step for the rest of the session.
Quad - FYI the FS was due by Q1 -Its slipped to April in ASND's recent RNS- it contracually must be done Jume
Shaz, you have been here a long time and you must know that the whole of the 15% is highly unlikely to flow to the company. A deal must be being worked on but may be held up by the absence of the Feasibility Study (now scheduled by end April instead of June). Only the FS will now provide a reasonable value indicator for a seller and buyer to negotiate. Factor in a few percentage points more for MAFL (less the cost of that) by all means but let's be realistic. Realism alongside the usual patience, of course!
MAFL has been leaky to news , but if the 15% was on the way and someone knew we'd be 100% up :)
Was expecting something on Goldens Gold financing and royalties but thats gone a bit quiet ..
news is never first thing so you never know!!
Strong move on very lively volume and a delayed buy just printed.
Is the 15% coming?
And to think the 5% is worth almost twice the market cap here already so to get the other 15%, we’ll be rich!
Morning - I think it may be sell the 5% - then legally fight for the other 15%.. looking good though , comfortable to sit back and wait Cheers
Nice problem to have for MAFL.
Sell the 5% or keep it for longer. Either way…
Sweet words to any investor...
500k to a million tonnes of copper…
That’s a monster…just copper
And I guess that before taking a decision on the put, we would want to know about the 15% and exercise whatever leverage we have? So that would make your £9m receipt a little contingent/uncertain at this point? I also suspect JV may be in this for the longer game - it looks like there is more to play for.
Hi Quad,
I believe that we have the right but not the obligation to sell our 5% stake to Ascendant within a certain timeframe after the DFS is delivered. So I’m not even sure that we need the full project to be financed at that point, as long as Ascendant have enough liquidity to pay us 5% I think we can ask for our cash.
Obviously these things are complex so I could definitely be wrong about that.
Florence, the observation about April's new target date for the DFS ( it was due by June) can only help move things along. We might all hope the numbers will surprise on the upside?! I also noted that Brennan referred to certain recently drilled areas being excluded from the DFS, those would be future icing for the cake.
I am unsure how the put option might be valued - and can we be sure it will be exercised (I forget its terms)? Also, if I recall correctly, MAFL's future financial interest is struck excluding the project financing costs (which would remain for ASND's account) so MAFL is only interested in the fact that financing has been obtained and not in the terms of that financing. We also have the 15% interest waiting to be resolved (no doubt being worked upon but perhaps impacted by the imminent DFS?).
An interesting quarter ahead. GLA
https://youtu.be/8w8EoHGUarI
Suggests that we will have DFS by end of April. Which will be more than the PEA. Although unclear if this is more in value or minerals. It’s possible that mineral content could be higher but post tax NPV could still be lower due to increasing discount rate from 8% to 10.5%. My guess is they more or less cancel each other out which would leave the put option valued at about 9m GBP.
Good to hear that they already have multiple parties interested in funding the project in case we decide to hold our 5%.
Given that we already have 5m of liquid assets, a near certain 9m incoming within a matter of months and some interesting but hard to value things happening at Golden Sun… I’d say you’d be hard pushed to make a case that the equity value of MAFL right now is any less than about 10m.
Someone is getting bored.
Big mistake.