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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Just to be clear about our 4 years reserves, Darren Bowden stated in an interview in Feb and said the last 4 years gold reserves at Runruno have gold
grades of between 1.4g/t and 1.2g/t averaging 1.29g/t gold over the 4 years, he also stated that there was a few months additional reserves found from additional drilling, these are the words of Darren Bowden and I take his word over any other party.
Those grades are typical of recent recoveries and so we can expect 20k ounce plus quarters for the rest of the mine life.
The debt was cleared 25th March.
Cash in the bank at 31st March $1.1m.
FCF running at approx $21m / quarter so cash in the bank at 30th April would be around $8m.
Earlier comments re. capex for new mine. We have already paid for the processing plant, fleet of mining vehicles, office buildings and equipment, etc. This will all be packed up and transported to the new mine site.
The £300m of FCF that will be generated by the current reserves over the next four years could pay for all that equipment with cash to spare but why should we? We have already purchased it once, no need to buy it all again.
Am I correct in thinking that all debt cleared as of 31 Mar and now cash in bank or gold equivalent is rising approx £225000 daily and so as of now(30 days later) free cash in back is approximately £6,500000 and rising daily?
Dividends have been specifically ruled out by DB for now.
Doubt there will be a special divi but they may start to pay a divi at 5% level now that the debt is cleared and they are making free cash flow every qtr. The newly acquired mine/tenement will take a fair bit of cash resources to get up and running and this will hopefully make up for any reduction in production of the current mine . All looks good. Free cash flow for first qtr was $21 mill on an average gold price of 2050 oer oz, its now at 2300.. so generating cash hand over fist now. on a market cap of just £117 mill..
Yes one off special maybe in results
Pretty sure you said that last time and total mined gold and recovery went up. I fear the day when you warn us about good results.
Forget divis and stop all the ramping
Mtl has very limited mine life and production and grade is set to sharply drop. They need to spend capex to find more ore
This has been ruled out as DB wants the cash to build the company and get the next mine going. I guess we can't rule out a one off gesture, but regular ones aren't on the cards for now
Would like this must be on the cards now
Also a share split and change of name might also be usefull to keep the pesky day traders away
Https://www.bbc.co.uk/news/world-asia-68852451
This weather should make mining even more efficient if not having to stop for traditional rainy season disruptions.
Just 2 weeks until block buster year end results
This has been the pattern the last few quarters nimrod, solid updates followed by the profit takers/ sell the news brigade and then slow and steady rises to the next leg. Top up territory for sure - all GOOD!
Candy already has accepted the 7% rate and MTL have already paid off the loan as far as they are concerned, Edwards is basically being given his 7% and if he wants 15% he will have to fight for it, but it looks like a lost cause for him with MTL having written legal agreements and Candy has followed those agreements and already accepted taking 7% interest.
Cracking day all in all, bring on Q2 and news on the Abra tenement.
There was some profit taking going on today which will have held the price back. SP could have easily have been higher on such an excellent update. Maybe the buyers will return tomorrow.
12m Forecast Rolling PE Ratio (f) 4.5. Metals Exploration's PE Ratio (f) is ranked 5th out of 44 companies in the Metals & Mining market.
Strange that the two parties to the loan agreement would have different interpretations of it. Did I read some months ago that Candy's reduction of the loan interest rate was dependent on RHL doing the same? No mention of that in the recent RNS but it's hard to imagine the two factions accepting different rates.
Good luck derampimg $44 mill revenue.and $24 mill cash inflow for the qtr
From the 27th March RNS - "RHL Group advisers have communicated RHL Group's belief that the higher 15% rate is applicable until repayment, which potentially amounts to an additional US$1.9m owed in interest payments to date."
This we already knew.
The most worrying part of today's RNS is the following :-" During Q1 2024 most aspects of the process plant performed adequately"
Adequately!! Why aren't the derampers jumping on this sentence?
/s
Https://metalsexploration.com/wp-content/uploads/2024/03/MTL-Repayment-of-Debt.pdf
"RHL Group advisers have communicated RHL Group’s belief that the higher 15% rate is applicable until repayment,
which potentially amounts to an additional US$1.9m owed in interest payments to date. The Company disputes this
figure and believes it has relevant documentation to support its position. Discussions on this matter with the RHL
Group continue and further announcements will be made in due course, as required"
It is just the smaller shareholders Edwards part of the loan interest thats in dispute, the larger shareholder Nick Candy has accepted the terms and the interest reduction to 7%, so yes its not alot, but its a written agreement that Edwards and Candy made with MTL and Candy is sticking to it, so Edwards is going to lose the argument if he was to take it any further than verbally agreeing to what he signed for, overall its small fry now, and not worth thinking about.
Isnt the extra interest 8.5% of 30% of 21 mill, so only 535,000
All very positive. Only snag is the increased interest rate debate on the 30% still has us on the hook for near enough 2 million USD. Would be good to resolve this ASAP, and hopefully plow full steam ahead into purchasing as much land as possible for future mining.
I want this share to delivery well into my pensionable years!
Hi Darientaylor, on the Q1 numbers for both companies, checking the current market caps for both companies:
CEY making 105k ounces with a average AISC of $1275 and a market cap of £1470 million.
MTL making 23k ounces with a average AISC of $1150 with a market cap of £117 million
We produce about 1/4 of the profits CEY produce but are market capped at just 1/12 th
So MTLs market cap needs to increase 3 fold to equal CEYs market valuation.
It blows my mind how cheap MTL is, but I couldnt be happier knowing the cream will always float to the top, just enjoy the ride.
Correction year Market Cap £250 mill share price 12p
Year end numbers out in about 3 weeks.looking for
revenue of $146 mill
Operating profit $62 mill
profit before tax $58 mill
Pretax P/E 3..
bargain of the year
share T/P 250p by year end