Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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Posted on SOLG board this morning by SJN1980
>>BHP this morning launched a takeover of Oz minerals a reasonably large copper play here in Oz 8 bill Oz market Cap (35% premium or there abouts). Their Prominent Hill mine is close to Olympic Dam in South Australia. All the copper stocks on the ASX are pumping as a result an example of another stock I am in Sandfire is up 10%. OZ minerals reject the offer as being too low and not letting them do due diligence etc.
Looks like this is the start of the M&A spree which is coming in the copper space.<<
Might be a better day for XTR off the back of that today.
Thanks for the Jezzoo was just reading about it and Caravel which I mentioned before as having some similarities to Racecourse was up 18%.
https://stockhead.com.au/resources/its-the-takeover-news-copper-heads-have-been-waiting-for-as-oz-minerals-rejects-bhps-8-3-billion-bid/
Even included a Bushranger esque buy back of something they pretty much gave away not so long ago
It was opportunistic at best and plain insulting at its worse...not even a YTD high.
It does show that the desired flavour is low risk - safe environments with copper nickel gold.
I have to say it again, if we get even 1m tonnes of copper it's inconceivable that it won't be developed.
i,m surprised colin hasn't been blamed for it yet ;)
BHP CEO when appointed said he'd move BHP away from O&G which when I looked in Jan indicated a future revenue gap of 40% that needs filling. Only high volume metals fill the bill and as I recall BHP are already nuts deep in iron ore so Iron and Copper look good fit for M&A for them. I also recall an article they'd shifted HQ (or have decided too shift) to Aus so imo a close eye on Lachlan fold high volume potentials I expect will be in their strategy.
Looks like an opportunistic bite at large existing volume which if rebuffed may mean accumulation of more prospective future plays at the cheaper end but even if they end up buying big existing volume producers then the remaining majors have to compete elsewhere.
Copper price low and set to rise.
This imo is good for the macro thesis and whether or not CB can flash BHP some leg its good news for lachlan fold explorers/developers who have high volume prospects
GLA
Hopefully we're now in the top 20 list of potential targets for the big boys! Haven't a clue who the other 19 might be :)
Thought I'd have a quick glance at Caravel's porphyry resource JORC. It's assessed as 2.8MT inferred at a..... 0.1% cut off. Only 1.67MT when using a 0.25% cut off. Using the cut off that Xtract has been using, 0.15%, it's at 2.45MT.
Interestingly, of the 2.8MT at 0.1%, only 287,300 is measured. 1.2MT is inferred.
I think xtract's resource will be smaller than this ultimately. (Who knows with a phase three?) Their resource is also pretty shallow.
In our favour, however, is the fact that as far as I can see, they don't have a run of continuous copper. We have 900m@0.3%, while their greatest stretch of mineralisation was 196m.
Comparison of market caps:
Caravel 94 Aussie dollars = 54m GBP.
We are currently 29m GBP.
One last point, they do not have 10m GBP income per annum like us (touch wood).
£10m per year income? Where did you read that data please?
the £10m :
100kg of gold per month from Fairbride, currently thats worth around £4.6million per month . we are on 23% of some significant operating profit element of that (don't have all details to hand) but guestimate 23% of $1000/$1780 x 4.6m$= c$1m per month (as believably quoted by CB and audited by this board as an upper figure)
If you add in the alluvials income plus other african income which MAY avail in next few months then $900k per month appears definitely achievable x 12 = $10,800
will soon be GBP dollar parity so there you go.
speed written e and oe while writing a client contract which I hope will be tighter than the AA buyout one
I am speechless we are only valued MCAP at £31m if those are accurate figures. (I don’t doubt your calculations).
Without any additionals and takeover potential we should be at 6p minimum.
yes even discounting those figures by a chunk leaves us with a very solid base here - great position to be able to prove more in oz without raising cash while other drills may be lying idle with other explorers finding it hard to raise in the current market.
there is also more gold at Manica to be mined to extend the 5 year mine life - potentially a lot, allied with some investment in a multipurpose mining plant there
I may be wrong on the mine life, 7 years? - certainly MMP have an initial minimum 10 year agreement to process at Manica plus an option to extend
XTR not the only Colin Bird company to have PMEs today
Well that was a better day than we've had for some while, and all because a big fish decided to try and take out a tiddler. Personally was hoping the price would stay low so that I can dip in again when some cash is freed up but I'm not complaining!
15% up driven by 7 medium to large trades. (Around £10k+).
3 of 250,000, nice round figures. Someone accumulating? Imagine what could happen if Colin releases some excellent news or we enter negotiations. I would hazard a guess we have more than 35 trades and more than 7 large ish buys.
" if Colin releases some excellent news or we enter negotiations. I would hazard a guess we have more than 35 trades and more than 7 large ish buys."
Yes, and all those SH who would love to buy more now but don't currently have the money available - would suddenly find the money...and quickly :)
The price extensions are rather poor indeed....not for xtr but for the market makers.
It looks like they basically have SFA shares and don't want to keep any as a way of reducing risk.
It means they take it down and up really really quickly, then have to use auctions to try and level the market again.
I know this happens occasionally but it should be with volume 5 or 10x this.
Oh well, we've got some assays at ascot to come...gold production figures and the reveal of the jorc.
And confirmation of full production at Manica. That should be due very soon? As was mentioned earlier this should really put a floor (higher than we are now) on the share price. Confirmation of full production, plus results of a quarter year of sustained revenue, may be required to tempt investors (back?) in? And possibly quieten that incessant bleating about placings.