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Https://www.lse.co.uk/rns/RRR/licences-obtained-at-bilbale-and-boulon-9vil2bnurpmn1uw.html
DYOR
Talkie, Stockbox interview re Burkina Faso
https://www.youtube.com/live/ICZSwt-tIU4?si=GACtw4frD_KGpHTq
DYOR
Banbury FASO operating costs est by Helpful
Quite amazing for admitted non professional mining with supposedly no insider information can make cost estimate on a project which he has not even visited
Helpful's track record? RRR would have cash flow from Lithium last March/April 2023- actual results Dec 2023 200 ton left for export but not delivered because they realized that the price dropped I guess no one check the internet
Talkie,
First of all RRR has not had it for years.
In the case of Bilbale our contract with the local landholder had to be renewed and with Boulon the licence had to be renewed. See the announcement below from January.
No one is doing any work on a licence without knowing that they can exploit it. Initially the work at Bilbale and Boulon was on the hard rock. Subsequently, after surveying they found they had alluvial at Bilbale.
The problem is how can you exploit it? You need kit on the ground and you need experienced staff used to operating in these countries; it is not as easy as popping down to B&Q. With Sam and Willem we have partners who know their way around these places. With the alluvial, you would only bother if it was substantial. They have done their surveys and Willem has confirmed the work. Hence, they are going to operate initially on four sites at Bilbale.
https://www.londonstockexchange.com/news-article/RRR/central-and-west-african-assets/16301442
https://www.londonstockexchange.com/news-article/RRR/asset-review-current-developments/16209620
https://www.rrrplc.com/wp-content/uploads/2024/04/2024.02.29_RRR_Burkina_Faso_Alluvial_Project_Presentation_2.pdf
Note the Moratorium has been lifted.
"With over 10 applications prepared for prospective ground once moratorium is lifted, to be ready to file immediate applications for further areas"
NB with also have alluvial in CDI at Yamassoukro/Lake Kossou.
If the alluvial works out okay at Bilbale, I expect that RRR will do the same elsewhere.
DYOR
Helpful - what is the bit I am missing on Faso then please. If costs are $300-500 and start-up costs only £260k to start producing revenue and with a quick turnaround - why has this project not been top of the agenda for years as the returns would definitely have been profitable given gold price over last decade?
Has there been a licence issue or something else which kept this on the backburner?
No not from me.
I'm all in on the Helpful cost of $550 per ounce which he has now been lowered to $300-500.
My only post was the cheapest gold in the world has an AISC of $1000. A big FASO mine has an AISC of $1100.
Our expert insider says AISC not relevant to us as we don't need financing. Make what you want of that statement!!
The rate of tax in FASO is 43% comprising a mandatory 10% government holding 7% royalty 25% corporation tax and 1% social tax.
None of this matters to FASO as Helpful says the costs are just $300 -$550 per ounce.
It's laughable.
Talkinto it's called ten years of failed promises. No one buys into the next promise.
Let's hope they can gather enough momentum for the placing guys to escape :)
Https://www.gold.org/goldhub/gold-focus/2023/11/gold-miners-aisc-still-rising-slower-pace
DYOR
In general, gold was out of favour ie not the hottest precious metal at the time. Professor Conroy said a Russian telephoned him to offer him money etc. That was the last hot commodity period. Paul Johnson said so as well and tracked RRR and the 2010 commodity cycle. Professor Conroy also said that UNLESS gold hit US$2,000, it would be hard to proceed etc. Look at the Cascabel PFS and note the price of gold needed , copper and or silver. That is what bankers will need to see - in fact they want BFS. Now, that gold is hot again but with a different twist ie central bank buying [see RRR tweet with embedded article] , young chinese buying gold seeds, jewellery etc, the demand is there now [currently]. For this reason, quick START UP appears the order of the day, not the Tier 1 type that will need hundreds of millions/billion to start up. So, short , quick appears to be the order of the day to GET QUICK CASH FLOW in. DL's ASX co in a JV with an AIM co is also heading for that ie heap , leach etc. So, watch other co's to see. At Havieron, the folks on that forum can post their own RNS - Shaun is alive.!! LoL. Maybe, the new rules and all that gets folks even more hungry for news, any sort of news. Look at the link I gave about Gold Rush - watch that operation and look at the ore piled up. RRR Faso looks like some of the ore is piled up? But as Help said, some are rock etc for later. Thanks Help - Yes, I do recall Berringa.
I don't know where this $2,100 has come from but I suspect it has come from our resident "partly qualified accountant." If it has, he is quoting AISC. AISC relates to hard rock not alluvial and is a valuation metric, it has nothing to do with FCF, profitability or alluvial mining. I have explained this but he persists. For instance take Soma Gold; they have stated that their marginal cost of production is a little over $900. They are in hard rock and mining at depth.
Alluvial is $300/$500 ish per ounce dependent on grade. It might initially be a bit higher at Bilbale because we are not fully mechanised.
https://digitalcommons.mtech.edu/cgi/viewcontent.cgi?article=1007&context=mine_engr#:~:text=All%2Din%20sustaining%20cost%20is,both%20investors%20and%20mining%20professionals.
A big element of AISC is the cost of replacing what you have mined. In alluvial mining you simply mine what is there and then move on.
DYOR
News, if you check out one of AB's interviews, he states that he thinks Berringa could be brought into production in about 18 months. To do that RRAL would need a JORC, a mine design, a PFS and a BFS. To move that forward in the time frame means drilling now.
AB thinks that he can see a route to a quick JORC through accessing the Level 2 Adit. He has also said that he thinks that there is between 200k oz of gold at Berringa and 2mil. How can he say this? Well the last drilling they did was not for grade and quantum, it was for structure. Before they drilled they created a 3D model of the Berringa deposit. The drilling was designed to prove that the 3D model was correct and the drilling did confirm it.
So having confirmed the 3D model the next step is get the JORC proved up. Note that the drilling was open as to depth and along strike. What does that mean? It means that the deposit is bigger than postulated: hence the variance in AB 's estimate.
https://www.londonstockexchange.com/news-article/RRR/drc-and-australia-gold-asset-update/16332837
DYOR
So is alluvial mining only profitable if gold is above $2100?
I suppose I am more specifically asking why they have only just decided to start this project rather than start it years ago when price was stable around $1800-2000 range if it only ever needed £260k to get it going to generate cash flow?
Would be good to know as we now know where lithium needs to be to make money so would be good to have the expectations on gold too.
Sorry , pressed send by accident via little finger.
or even ISA money ie money flows and all that. The flows have been rather specific as certain themes compete for investors money, even in the USA. Not difficult to understand as there is NO bottomless pit for money.
EXPLORATION CO'S:
On AIM, they have had many TOUGH years if one has NOT already noticed. Currently, MINERS DECK tracks top commodity and it is TIN. Copper is also hotting up due to supply deficit potentially. AIM exploration co's try to go into the commodity of the time & those OUT OF FAVOUR lag the commodity market. Right now, nickel is out ? Hence, RRR has been also following this typical pattern of exploration pattern. Have a look and STUDY each small AIM exploration co and one will find this trend. RRR has been mainly in GOLD and this was predicated by the GOLD PRICE and hence years of lagging interest etc. Now, the gold market has awaken and therefore, RRR is having to look for immediate cash flow as is some of the co's that have woken up. HELP explained about VICTORIA gold in Australia and this is the case in point. I also cited another ASX co that has licences in Cote d'Ivoire and FASO but is 10x less than Southern Cross Gold with the HOTTEST current Victoria gold licence @Sunday Creek. And it is 20x less if one grosses up the Southern Cross Gold mkt cap for 100% [Southern only owns 49% of Sunday Creek]. AH, INTERESTING THAT RRR AUSTRALIA WILL POTENTIALLY DO A PRE-IPO AND DRILL BEFORE IPO-------------WILL THAT BE FOR THE LICENCE CLOSER TO BALLARAT MINE [not in vogue] or for KILMORE, THE HOTTEST LICENCES OF RRR, NEXT DOOR TO SUNDAY CREEK AND WHERE MINERALISATION IS SAID TO EXTEND TO RRR/POW KILMORE THEN courtesy of P.Johnson, POW then.?? QUESTION-----QUESTION------QUESTION. THANK YOU. Not editing so pardon typos.
Sir,
You have NOT been watching the CROWD THEORY as the financial experts ie where the UK investment MONEY is flowing or has been flowing to. Crowd theory tracks the money flow. On HL, there are some basic stats as to where HL clients have been investing their money and or specifically IS
Does it not seem strange that with 'F****ng gold everywhere' (to quote RRR tweet) and kit arriving within days to start production that only £240 has traded hands today.
An AIM share with a valuation around £2m about to start maiden gold production when gold is priced around it's highest on record and no one seems interested.
Plus they have a multi-million pound DRC payment which they believe is days away / imminent and also a nice supply of lithium for when the price is right to sell with Chinese buyers possibly lined up too.
Normally on AIM, the share price starts moving on the hype alone... RRR is incredibly flat lately and its not for lack of volume, I look daily at £10k trade and can be easily filled if wanted which is reassuring as I do think a share spike following an intraday DRC RNS could still be ridden for profit as it seems nothing else will move this share upward.