Member Info for AimSurfer

The CEO is the largest share holder in this company. The Directors have been paid in shares in lieu of fees since ~2009. Patrick has made several large share purchases over the years. All his time and effort over the past 14 years can only be recovered through the shares he owns. When the deal arrives it will be aligned to the shareholders interest.

I don't post here often. Like many holders I've been here a while. The progress of CS has been slower than I expected (or wanted), but there has been consistent progress. Over the past 4 years CS project has been significantly de-risked, from the initial stake through the permitting process to a 27 year plan with all the required licences to operate. During that time the market for this obscure material has grown significantly, part due to decommission of coal power stations and part due to the drive to reduce carbon throughout the built environment; these two factors are only going to increase demand for the CS product over the coming years. 'All' that is needed now is that elusive deal. Back in mid-December the board of the CRMC supported a JV and we were in the advance stages of negotiation. All the ducks are lined up; vast quantities of high quality and high demand material, all permits in place, two interested parties - one in advance stages of negotiations. I'm starting to get excited, my opinion is the days of SRES flying under the radar are numbered; how many other junior miners can match the position SRES is in? Good luck all!

I've hold a small trading pot and i've been looking for value in other resource stocks to make a trade. Inevitably I draw comparison with SRES, and I'm struggling to find better value than offered here.
The CS project has been mostly de-risked with the mine permit awarded last year, and with commercial trials ongoing IMO this will soon be a revenue generating project. The success of this project de-risks investment in SRES, and IMO this project alone would support an MCAP many multiples of the current £10m.
Alongside this there are the Perl projects, not quite as developed, but in a similar area to CS and will benefit from the customers and logistics established through CS.
And then there are the ongoing exploration projects in gold and silver, at various stages of development, with potentially high gains. Normally investing in an exploration company is high risk due to the boom or bust nature of exploration, but again the revenues generated from CS secure the future of the company and greatly reduce this risk.

FOMO building into the close

60p post consolidation (after the 20:1 share consolidation); it's equivalent to 3p with today's no. shares in circulation.
This is just the value of the deal, not the potential future value of the RTO company (linked to approval of mining permits, off-take agreements, etc.) I would expect the future value to be greater than the deal value of £15.8m.

Currently 456m shares in issue.
Pre-consolidation the deal is valued at £15.84m/456m = £0.0347 (3.5p)
Post consolidation; 456/20 = 22.8m post consolidation shares; deal valued £15.84m, per (post consolidation share) = £15.84/22.8m = £0.6947 (69.5p).

£2m placing done at the deal valuation price with 20% discount (as ever...) = £0.5557 placing price, £2m/£0.5557 = 3.6m new shares, add to the consolidated 22.8m = 26.4m shares in issue;

Share price on re-admission ~ £15.84m/26.4m = £0.6 (60p)

Current SP post consolidation 0.75 * 20 = 15p; anticipated SP = 60p = 4x from here; not bad for a punt!

All numbers IMO - as always DYOR :)

In order to realise the tax credits, I would expect the asset KLK will reverse would have revenues in the region of $30m/year ~ equivalent MCAP 300m..?? 100x from here? Although might not happen so lose all!

What did I miss?! This has been on my watch list for a while. The patent news from Friday was good, but more part of the process than step-change in the outlook of company (and didn't really budge the SP on Fri).
What's the reason for + ~£15m on the MC?

Took a small holding here, expecting an update soon

Took a small holding here too...

I actually googled this to check it out (not that I didn't trust you Ice..): https://entomologytoday.org/2020/09/02/volcanic-rock-yields-new-kind-of-insecticide-for-mosquitoes/#:~:text=Michael%20Roe%20says%2C%20%E2%80%9COur%20most,being%20used%20for%20mosquito%20control.%E2%80%9D

I will be one of the existing SHs trying to purchase through this offer.

I think there is a good possibility for the sale of the CS Project. This fits with the exploration / project approach of the company and PC's modus operandi.

The below scenario isn't too far fetched..

In terms of a buyer, there will be cement producers giving security of supply serious consideration. When the Pozzolan was produced as a by-product of coal power, there was a regenerative supply, presumably prices were stable, and little risk of a competitor securing all the supply (buying a power station?).

However, as supply moves to mine origin, it becomes possible to own and control the supply of this vital component. A Cement producer could purchase a mine (e.g. CS project); providing continuity of supply for their operations and limiting supply options for their competitors.

Commence bidding war for the mine - no company want's to be at the mercy of a competitor.

Dubliner recently posted some calculations on revenue based on the recent press releases from the company (RNSs & interviews) indicating initial revenue of ~ 10m USD with a margin at ~ 30% (have a look back through Dubliner's posts); apply to this your own P/E

With regards to the resource value, the company has been quite secretive on the quantity. The 2017 broker's note indicated a resource NPV of 29.1m USD, at the time the mine plan was forecast to be 15 years. Since then the company has undertaken further drilling, which has identified more extensive resource (still not fully defined) and the mine plan in the permit has extended to 27 years - I expect the NPV of the resource has also increased.

These values are associated with the current permit application. There are also a number of other projects / finds including perlite deposits, gold, etc.

^^^ this is an important marker

The risk factor of 67.5% was applied by the companies broker at the very beginning of the project, back in July 2017, when the project was in the initial concept stage.

The key risk areas: permitting (20%), Project Economics / Transport (20%), Department of Transport list (10%) and 225kt market size (17.5%)

In the intervening 3 years, the company has diligently worked to reduce and mitigate the risks; i'm not going to list everything here, it's all evidenced in the RNSs since July 2017, includes;

Project Economics / Transport: drilling / testing / certification to prove the quantity and quality of the resource (the mine plan increased from 15 yr to 27+ in the current permit application), market research (market testing of product), capital spend plan (CONTRACT MINING), MOU for use of existing processing equipment

Market size: 2 No. MOUs signed for off-take, market testing of product, establishment of the Natural Pozzolan Assoication (SR Minerals key founder)

DoT: Road permit, routes identified,

Permit: EA document issued by BLM - no significant impacts identified, water permit, currently in for public comment; company anticipates FONSI

The BS note indicated at the time CS Deposit NPV of £22.5; further drilling since allowed mine plan to increase by almost double.

You can make your own judgement as to the remaining risk, but my opinion is this has significantly reduced, and will further reduce in the near future with the FONSI.

It doesn't really matter if it was a big buy or a big sell - the SP has hardly moved; the single buy/sell was matched by the same volume of buy/sells made up from multiple smaller trades. It must have been worked over a number of days, for that kind of volume in a single sell or single buy trade they got a good price; one would expect a buy that large to be at the top end or above ask, and for a sell that large the price would be at bid or lower, it was pretty much at the mid at the time of reporting)

Hopefully we have avoided the worst of the COVID delays as Surveys, site visits, environmental base lining, etc. are complete - it's all in the Environmental Assessment report on BLM. The remaining activities can be effectively delivered from home working; Consultation is online only (submission by email), and we have already seen the consultation process initiated whilst Nevada is in lockdown.

I think we’ll start to see the early bird positions taken here whilst still under .2

I still can’t see what is in it for C4. They take on £2.5m debt, and a company with no clear revenue. If they don’t convince investors to part with £1m at the placing (there is no visible reason to invest with MFDEVCO out of the equation) in 6 months the company is suspended and C4 are left with the £2.5m+ debt.

There is something fundamental missing here. Why will C4 take on the loan? And why do they think they can convince investors to part with 1m given the history and no apparent future revenue.

And into his SIPP - suggests a long term expectation for growth