The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Welcome to AIM!
CM: I agree. The purpose of the PFS is to support the decision you’re talking about. It should also start to inform how much you need to raise to get your digging underway. Without it there’s no decision. If you can’t afford to finish it you need to raise funds. When the company refuses to comment on progress you have to draw your own conclusions. My conclusion is that Portugal has just been upped in the risk assessment, Oman is an embarrassing farce where most people are pricing 0.0p into the SP, and Moz is starting to look like a dodgy secret. Must be time to announce a drilling program in Finland (remember Finland...?). After all, some meaningful activity promising jam at some point in the future is becoming the only purpose of the company - to keep the BOD in clover.
The reality may be that capital costs for a greenfield site such as this are still unsupported by the current market price for ilmenite. Listen to what Kenmare’s CEO has to say about their current Minerals sands expansion in Moz.
“ Whether by accident or design, Kenmare has found a sweet spot in the market. The ilmenite price isn’t strong enough to support hundreds of millions and even billions of dollars of capital expenditure that would be required to get major new projects off the ground, but it is strong enough to support the investment in extra supply from existing operations like Moma, which can leverage off existing processing and export infrastructure.
So far that analysis has been borne out by the fundamentals, and the investment in new capacity is nearing completion.
The expectation is that Kenmare will be producing ilmenite at a net cost of between US$50 and US$60 per tonne from 2021, compared to US$78 per tonne in the first half of 2019. Set against the current ilmenite sales price of above US$200 per tonne, the company looks to be in a nice position.” https://www.google.co.uk/amp/s/www.proactiveinvestors.co.uk/companies/amp/news/911354
This comments may be aimed at making Rio think more closely about Mutamba but it makes you realise how important it is to get the PFS and DFS as complete and accurate as possible before thinking about raising funds?
The Portugal risk shows exactly why we need to end the cover up regarding the Moz PFS. Moz could be the Plan B that needs stepping up, especially as Oman mining op’s is increasingly another dirty little secret that someone is keeping.
What are we hiding? I can understand this item being put on hold pending the issue of licences, once the delay became ridiculous. But this was originally reported as due to be completed “in the coming months” two years ago, long before we expected the licenses to be issued. We expected it to be delivered before the licenses were given. In September last year this was “a priority”. The first license was issued a month ago, which should in itself have been reason to update us. All licenses now issued. The fact is that completion of the PFS increases our stake from 20% to 35% - this is serious stuff and seriously value-adding for investors who’ve been incredibly patient here! The silence absolutely stinks to high heaven! My bet is that the BOD is working on a massive dilution to fund it. Get some news out, Archer. Shareholders are going to see ABSOLUTELY ZERO added value as a result of this.
Or maybe a damp squib ?
It's what known as a slow burn!
Issuing mining licences took 18 months longer than expected, if I’m not mistaken? The PFS was started 2.5 years ago and was supposed to take “months” to complete. The delay in issuing ML’s cannot be why the PFS hasn’t been delivered. Completion of the PFS increases our stake here from 20% to 35%. The company is refusing to speak on the matter. Are we being ripped off?
Aug 2017: “anticipate it to be finalised in the coming months....will be delivered with a quick outcome”
Sept 2018: “scoping phase of PFS well advanced”
Sept 2019: “priority to progress the PFS at Mutamba”
Come on then - where is it??????