Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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On whole having time to digest RNS with the help of podcast.
More time and patience is called for to BR into cash generator.
Market will always play on this sentiment and test lows. Hopefully todays drop is only down to LTHs can’t wait no more and gives others a chance to get in or some to top up and hold the fort for now.
After an RNS and the SP down 15% (as we were today) many say the market has given its verdict on the RNS.
The SP is controlled by the MMs. There is not some auto algorithm that will ensure the sp is higher with more buys and lower with more sells or level with same number of buys v sells.
There were broadly the same number of buys as sells today and that determines the real market's view of the RNS.
So the market was broadly neutral on that RNS.
We did not have a wall of sells on the opening bell which also indicates the RNS was not bad (or good) imho.
the 1.63 u/t trade skewed the closing price. It was circa 15% down.
The fact that one u/t trade can do this makes my point that looking at SP as an indication of market view is not accurate
The SP is the figure you get when you sell so I'd pay attention to that, the fact that the buys/sells were about even is irrelevant at that point.
If you're buying or selling then the sp is what's important, but my point was that is not what you should look at if you want to gauge the markets view or verdict of an RNS.
"16 economic pit shells were modelled in the Interim Report from an operating cost perspective only with capital cost requirements excluded and to be finalised on completion of the Study. The 20Mtpa and 25Mtpa open pit options potentially generate significant operating cash margins dependent upon mining rate, copper price and cut-off grade"
I don't think in the real world (where we were hoping to sell on the project) that reads very positively tbh.
How about colin giving us a loan repayable only after a B ushranger sale. The ultimate confidence booster and doubt remover ?
Was anyone else expecting the study to give a full economic viability picture ? Or was that just me hoping for some meaningful guidance ? Any ideas anyone what including the capital costs would do to the study ?
They took 3 months to come up with that statement of the obvious LittleWing !
"The 20Mtpa and 25Mtpa open pit options potentially generate significant operating cash margins dependent upon mining rate, copper price and cut-off grade"
Duh ?? really ??
Who'da thought it ?
And the roast interview boys lapped it up lol
Optimising the pit by means of pre ore sorting is something that is alluded to in the preliminary 71mt conceptual study to improve economic viability by “analysing lower production rates such as 12 or 15Mt per annum.” Simply, just to reduce throughput will certainly not improve economic viability without increasing head grade!
It’s something I assumed they would do anyway as par for the course, so didn’t think anything of it. So It’s no real surprise to take these necessary steps to maximise NPV, in a typical low grade high volume porphyry project. With more the reason to do so, to reduce the projects carbon footprint as social tolerances toward open pit mining are ever more demanding meaning major mining companies, not only for efficiency and profitability, but also have a responsibility to take these measures anyway in just obtaining the permissions needed to progress to development stage alone, as environmental legislation tightens.
The pre-concentration study shouldn’t take long to complete and not be that expensive as just four drill core samples have already gone for analysis which looks as though from the RNS that is all that is required. Once the mining study can then be updated to show its economic state, then there will come an optimisation phase of the drilling that is being planned, directed from initial work by Optimal on the mining study that is waiting to be updated with the pre-concentration study.
Overdone as usual but understandable if patience is running thin.
Howezap. Fair point made. Colin has spoken about doing the same at GLR and the Luansobe project. But the tie a ribbon on it and flog it plan now a distant memory. Many a disappointed shareholder.
I just dont get what the point of that RNS and interview was as they told us nothing. trying to make something of the concentrate process which is neede3d anyway just came over as hiding something.
I think another point that is important to consider, is that with Optimal recommending going down the ore sorting route, it would be pointless to go to the extra effort to work on Cap costs for a 20-25mtpa plant. When the updated study is finally released one would assume that the previous 16 scenarios would be deleted as new scenarios would supersede those as would be based around using modern ore sorting technology, would be illustrated, including, working on and then including the reduced capital costs that a smaller scale but more efficient operation would require.
It would simply be a waste of time and shareholders money money to have gone to the trouble when the costs would have had to have been evaluated all over again. So certainly, ‘not’ including Cap Ex because it is the only way to show it is economic!
That’s plainly wrong because they haven’t released it yet.