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Norm I also like the AA deal if we don't get completely bend over with the terms. Also bigger picture if you build up that business relationship they might want a look at munni munni for PGM
Right! ( I think ) Thought they'd already had $10bn, last month from shorting the Mag 7. Expecting rinse & repeat then?
5x5 NDX TP 16000 unless close above 50ma. My SL is @BE @50ma if it dont go to plan today. ill pick another spot if stopped out.
reason APPL gap filled, NDX rejects 50ma & retest of breakdown. The last MSFT gap fill had massive down day after. DYOR
What are you expecting annoyingdevil, short term correction or a crash?
@AJ its a bit more complex than price alone.. there are a large number of costs involved.. too many to list also UFO are not really in a strong financial position to negotiate too hard with anyone, as we need the Capex to get the mine up and running.
All that said its not impossible to deal with the end customers, but for my money I would really want a "stable" Minimum 2 year hedged price and a trusted partner who has good finances and would survive any market fluctuations. So you might be giving away some of the potential profits to insure against many of the downsides.
You also have to take into account the benefit of dealing with a "western friendly" company.. I am not Anti- Chinese per se .. but i would rather deal with AA than an "actor" run by a communist state.
There is also the potential benefit that the Ore might not need to be shipped - perhaps we screen and dump it just up the road into AA's yard for blending ?
There are so many possible outcomes.. but the AA deal still looks to be a good one to me .
Been waiting for this day for a couple weeks now. I recon theres a massive Short on for the US markets.
Normbeef.. Yes I agree we have a quality product that is wanted, But at what price, surly we want to sell our ore to the end user not the competition, so they can make what should be our additional profit!!
Or is that how it works in mining , I know when I was in business, the last thing I did was help my competitors at my companies expense. If I could sell all my production at full price why sell to a middle man, at a reduced price!!!
AJ .. quite often miners will want Higher grade Ore to "mix" with their own lower grade Ore to bring up the value .. Our product is High 50 - 65% in purity..
So Miners will take all we can give them.. tbh its the one thing that I never questioned here .. we can sell more than we can mine that is for sure
Alien Metals enters into JV with Errawarra in the West Pilbara
https://twitter.com/Directors Talk/status/1786393793182458302
I know this is all speculation, but one thing that i cannot get out of my head, regarding the AA agreement, they are a miner like we hope to be, not an end user, so they would want to make a profit on the ore they sell on, so my thought is What is that margin, and what will that leave us with? None of us know that answer but , I for one would love to know!!!
Yep and i think that split on licence is the key to that
I have no clue what they will do in the longer term.. short term I would prefer they stay on the current plan.. lets get all the ducks lined up to mine.. the most important thing for us is now the financing..
We have all the contractors ready to go.. if UFO can keep the whole show in the short term.. then if the road and access agreements can be assessed from a position of power..
No but its good for the sector, unless if course they started to buy any thing with a license to mine 🤔😉
Bids from Bhp and Glencore expect?
Can this affect Ufo?
No sirious i would personally say you can iv that for us and transport a d deliver as part of the deal
So they get sirious, road is joint, rest is ours?
Makes sense, but why split in 3?
Just been having a conversation regarding the license being split in three that i pointed out a few weeks ago,
Imo they will do a sale with a caveat that we get money and they pay for the to get road built as we hold the access to their land.
All speculation at this stage but makes sense to me
Yep I dont like that AA clause either.. i am sure we could get a 100% funded deal elsewhere. perhaps AA might change their minds ? I wouldnt want someone like Shyster to come in with $5M and take a bigger chunk of the pie than they deserve.. but that is likely to happen given the Mcap is now so low..
I guess Q2 will hopefully shed some light on things with the Project finance
Norm - yep must still be in place, else they'd have to inform the market.
Slowly ticking off the 'Things to do' list getting ready for a sector momentum shift.
In the IG interview Alwyn said, "There are quite a few interested parties talking with us about a joint development."
Miscellaneous Licence granted for the haul road is key to unlocking stranded deposits for MinRes, Gina & FMG.
Now that Mining Lease has been granted, I'm expecting a joint development JV/Offtake deal hopefully this month.
Bottom was in. Just get positioned asap and ride the uptrend.
Then will keep going up as we drill out the monster deposits across Pinderi, Vivash & Brockman (est exploration target 233Mt).
Norm , id like a deal with no upfront payment or a deal whereby this is paid back within the DSO shipments every month . I am sure there would be companies out there willing to front the whole upfront cost with a discount on the DSO over X years
@ Devil.. so from the RNS we could presume that we are still under the exclusive rights agreement with AA unless we have "agreed" to not bother with the deal anymore ? but that would be market sensitive thus should have been disclosed.
Have IOCA supplied the correct documentation and base case financials for the project ? who knows !
The deal was a good one in my eyes outside of the $5M we were required to stump up, as that now looks like a large chunk of cash..
Exclusive right commences immediately and will conclude the earlier of 60 calendar days after IOCA delivers to Anglo American an agreed Base Case Financial Model together with all necessary supporting documents or such later date that the parties may agree upon.
Yes, good to have their interest, not so sure about giving them exclusive rights to negotiate.
Annoyingdevil, but if you have an AA deal on the cards, it gives us some more leverage to make a better deal with Hanock Prospecting, for example. I see it as a very positive thing that a company the size of AA was interested in our project.