Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
v insightful.....
a couple of newbies that haven't done their reading........
Any raise will be after both deep / shallow (TBC) plans are announced at the earliest. Most likely scenario is that the shallow campaign would have started.
All really good points. If they have what they think they have then the SP could comfortably 100x from here in time. I dont think its unrealistic to value the company at 4b with a 50b asset in the ground. The question is - what % chance do we think that they do actually have it? At the moment the market is pricing in maybe a 1% chance with a £40m market cap. Based on everything I've seen I think the odds are significantly better than this. Before I get shot down I know the above numbers are all v simplistic and dont take into account cost of extraction, dilution etc etc. Just making the point that at the current SP we're basically pricing in very low probability. Once they've further derisked with the shallow drills I can see 20p+ and then perhaps a £1 by year end 2022.
Completely agree Keith. They've been absolutely clear with the comms so far in phase 2.
If seismic does prove to work then expect they'll extend the line over a larger area over the Xmas/New Yr period. That would be very good news. Hopefully a killer RNS mid Jan to say xx must drill deep targets identified and xx must drill shallow targets identified.
With the amount of options they both have buying on the open market is only about trying to prop up the SP. But with relatively modest buys people see through that. Waste of time.
v insightful
The day they come out and say - we've got a light weight rig coming out to site to commence shallow drilling in x weeks they'll be a frantic rush to buy back in. I wouldn't be at all surprised to see a 50% + SP move in one day. Be patient everyone.
A compete non event but obliged to let the market know.
As for operational progress - all on track and as per the plan set out. Contract will drilling contractor won't be signed until the results of the seismic are known so early Jan I'd guess. Likely that the details of agreement are already in place with a price per m the only detail left and dependent on the size of the job (number of holes). Great news that we could be getting some images of the shallows early. Shallow drilling late Q1. Discovery in Q2. Raise at 20p+ ahead of 4 hole deep campaign in Q3.
Hope so
Wrong about what Deano? Size of holding? You seem v sure. Happy to have a side bet with you if interested?
Not being brash Deano - people that mention a 'fund raise' in almost every post are usually trying to strike fear. I suspect this is the case but might be wrong. As for holding more than me here. v unlikely....
Can't believe I'm answering another Q from this guy who is quite clearly not holding. But anyway - Persian, we don't know when the deal will be agreed. I suspect (but could be wrong) that they're waiting for the results of the Seismic before signing a contract. The drilling contractor will want to know how big the contract is (1 hole, 2, 3, 4,5 etc) before a price is agreed. This will only be known for sure when they've processed the seismic result. Best guess is we're looking at c.6 weeks from start to finish on the seismic and we're now into week 4. So perhaps another couple of weeks time. I think we'll hear pre the New Year for sure. re funds - as you're aware, they have funds available (c.$13m). The seismic will likely be costing c.$2m. They'll be burning c.$200k per month (c.$2.5m p.a) on running the business so deep drills will cost c.$4m at a guess. So they're financed for a couple of deep drills or 1 deep drill and a shallow drilling campaign in the first half of the year. I suspect they'll carry out the shallow drilling campaign, make a discovery and then raise at c.15-20p before a deep drilling campaign later in the year which will be 4-5 holes.
Out of stock.
Persian - as mentioned before, there is a shallow drilling campaign (Q1-Q2) and a deep drilling campaign (Q3-Q4). DM was talking about the deep drilling campaign starting in June ideally with Q3-Q4 a worst case scenario. They are looking to bring in a water rig (or equivalent) to conduct the shallow drills and will have no issue in sourcing as readily available in country. So Q1 v possible as long as the ERT survey (due to start soon) identifies opportunities.
They're no longer selling on Amazon
I think we'll see a 50%+ day in the not too distant future. This will likely come on confirmation of the shallow drilling campaign starting early next year. So despite the huge spread still feels like a great entry point.
This is just about to rocket !!!
Can we finally break through 7.5p today ???
I'm sure you're fine for now. Be careful with this one though. A Q1 shallow drilling campaign with a discovery will help derisk things and the SP could climb back to previous highs quite quickly. I wouldn't want to be short here. Remember this is still the largest known helium resource in the world which once (if) fully derisked will have a market cap in the billions.