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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...
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!