Stephan Bernstein, CEO of GreenRoc, details the PFS results for the new graphite processing plant. Watch the video here.
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Interesting that the interview has had over 240 listeners. Will be good to see how many listen after the hard rock and Kalengwa updates. CB was obviously excited about both, but couldn't say anything without first making a statement to the shareholders via an RNS.
On the down side, looks like alluvial production has been a bit of a washout for Q4 as nothing was even hinted at?
Would be good to get an honest report of the current cash position and cash burn with the next RNS.
LW
You're right. There wasn't any mention of the low hanging fruit. That may have been because this was more of an update on copper plays as supplement to the RNS. Hopefully we will get a more thorough update on manica soon, and the LHF.
I understand your concern re income timing. I've said before I would have preferred if we waited until we had actual HR income before tried to expand in other areas. CB said at the investor show,... if I get the timing right I wont need to go out with a placing bowl... so he is aware of these risks. Hopefully we have enough CIB from last placing to keep us going until HR income is generated. I would hope he would be monitoring exploration costs and, if required, reduce exploration / hold this programme if we were very near getting HR income.
Unless I missed it, there was no mention of the low hanging fruit which we should have been processing according to previous guidance. has this plan changed ? Bird does seem to have a habit of not telling us if plans change. I accept and understand that they will change in mining but we need to be kept informed. I'm still concerned that the day we get meaningful revenue in seems to be getting pushed back but the exploration side of things which clearly excites Bird is costing us now. What is our cash situation ? I hoped the alluvials and low hanging fruit processing would see us through but we don't seem to have confirmation that is the case ?
My impression from the RNS is that Matrix drill results were not that great, possibly disappointing, but Eureka results were promising, and possibly much better than expected. Not surprising really as CB has previously said Matrix is high risk and Eureka was ' a dream' to find and low risk.
I still have the scars from Okiep copper mine dumps / exploration so won't be getting too excited at this stage. That was supposedly going to be a 'Company maker' and 'game changer' but cost us $1.5M for very little revenue. Exploration is high risk.
I'm 95% focused on Manica (DFS / Robust / detailed) so, for me, the most important news today was the news (in pod cast) that we are 'On time at Manica' and that 'We will start the serious construction shortly'. So what does 'shortly mean in CB speak? Probably by 1 March so that is 4 months later the 1 Nov 2019 start date previously given. That now puts revised construction end date as 1 November (4 months later then 1 July end date). CB's 8 months time scale for completion is no doubt, as ever, very optimistic so I would be amazed if the plant was completed this year. Probably Q1 2021.
Hopefully as we get updates on the construction progress the SP will start to rise. I would hope sp would be circa 2p just before plant completed ready for a possible rerate on first income?? That estimate would be excluding any possible good news from the lottery of the copper plays.
I see copper plays as a possible bonus which I hope will do well, but won't be expecting too much. The market seems to agree with me - at this stage anyway.
Whilst the news is encouraging, these projects are months, if not years, away from production so this update is not likely to have much influence on the SP.
Manica and Kalengwa both represent near-term cashflow opportunities and updates on either/both of these is likely to have far more impact.
Over to you, Mr Bird...
Colin Bird, Executive Chairman said: "We are particularly pleased with the drilling results at Eureka which are both intriguing and exciting in that mineralised intersections are thick and the occurrence is potentially open on strike and to depth. The results are intriguing on the basis that the occurrence is characteristic of typical copper belt mineralisation whilst the deposit is some considerable distance from the copper belt. It is exciting because the ore body is near vertical and the widths are in excess of our original expectations. We eagerly await the assay results to confirm copper values and the presence of cobalt and the grade, if present. Our plan now is to gather in all the results and plan the next stage of exploration activities to test these encouraging initial results."
https://www.lse.co.uk/rns/XTR/drilling-update-on-eureka-and-kajevu-zambia-24gpab9cig1ryu9.html
Looks positive moving forwards...