Member Info for Andii

garry w aka hoof

following you been booted from the telegram group for being insufferable, some time later you came up in conversation there again and someone offered up this little piece if info

"gary w nasty little ****. i booted him from here for his aggressive behaviour then dmd me telling me my teenage son was an ugly c#nt etc."

Go eat crayons you melt. And while your at it, pick up the primary 6 reading book as your grammar reads simmilar

Hi Grandulusia,

Apologies, I completely missed the riverfort warrants which are more complicated to work out;

"On each drawdown, RiverFort will also be granted warrants to subscribe for new ordinary shares in Marula equal to 40% of the relevant advance divided by the reference price. Each warrant will have an exercise price set at a 40% premium to the reference price and will be exercisable for a period of 48 months. The warrant exercise price is subject to adjustment in the event of a future equity issuance at a lower price. A further announcement will be made in due course."

As it stands right now, $750k has been drawn down (call it £550k).

40% of that drawdown = £330k

A 40% premium to the reference price (todays share price?) = 5p

That means there are currently 6.6m warrants issued/to issue to riverfort.

If the $2m is fully drawn down, that figure rises to 22m warrants.

It would appear riverforts intention is to get the loan cleared and just hold zero risk warrants which they can then exercise at a future date should the share price rise significantly

The bit I am a little confused over is the "divided by the reference price". I think its a mechanism whereby the price of the warrants is adjusted up or down if there is a future placing. But is this only a one off adjustment at the next placing, an adjustment made if a palcing is conpelted to pay off the loan, or is it adjusted at all future placings.

Should a placing be carried out at 10p for example, £330k of warrants would be at 14p meaning only 2.35m warrants issued. Conversely, a placing at 1p would mean warrants at 1.4p and 23.5m warrants.

Can the strike price of warrants change over time, and have the $750k drawdown warrants already been issued?

Not great needing to issue so many warrants. I guess when you have zero projects bringing in revenue, no cash and the shares suspended, loans like these are an unnessecery evil.

Today's second RNS not displayed on LSE

https://www.investegate.co.uk/announcement/rns/marula-mining-plc--maru/appointment-of-critical-metals-trading-consultant-/9430743

You are mentally unwell Gary

Warrants are only issued IF the ATM facility is utilised. To date, zero funds have been drawn down against the ATM so zero warrants issued.

The MAX warrants that can be issued is 3% of £10m. So £300k worth of warrants. At today's share price that would be 8.5m warrants. And the ATM facility, if used (at Marulas election), will most likely be at a share price premium to today's share price so the number of warrants will be much less than 8.5m.

Considering that warrants bring in cash to Marula, the dilution is less than 3% of the total shares in issue (360m currently)

Let's say the share price hits 10p and £10m of the ATM facility is utilised, the number of warrants then becomes 3m or less than 1% dilution. Why the panic?

"Default interest of 3% per month shall apply to any and all outstanding principal, interest and fees that have become payable and are not paid at the time of being due."

My guess is we add 3% to the amount each month, start producing at 1, 2 or 3 projects then relist all within the next 2 or 3 months. Share price opens at a premium and we clear the loan.

3% of $750k is just under $25k a month interest. Losing assets to riverfort only becomes a concern if no other funding is available, the company remains suspended and none of the projects start earning revenue. The chances of all 3 of the above happening are IMO very slim

Whodoyoubelieve, i'm sorry I potentially ramped you into this share with my excitement.

In reply to questions you raise, why wouldn't a major mop up all these projects before Marula? If you go back to the original Quinton interview end of 2023 he quite clearly spells it out, majors want gigantic projects with proven JORC resources that they can make guaranteed margins on. Coupled with that, a major has many many levels of red tape to the point that simple decisions take months and projects take decades to develop. That is why juniors prove up then majors swoop in later on in the value curve to develop

Take Marulas projects to date and you can see why a major wouldn't touch them

Blesberg - tailings, no JORC, scant drilling, no feasability study. The upside? A tailings pile the size of a small mountain and geological evidence that the resource is massive. The project doesn't work with only spodumene tho hence it suddenly needs a chineese JV to move it up the value curve.

Kinusi - its still an artisinal mine with no JORC. It is marula which have carried out samples and had a 50MT exploration target independently assessed by a geo company. It still needs explored and developed. That takes time and cash. Marula havent had much free cash yet to date hence Kinusi in the slow lane. Also, Tanzania just went through a year of hell politically which makes getting 3rd party loans to develop (because inital hand mined sales aren't going to cut it, they need roads, infostructure, drilling, process plant)

Kilifi - its not a mine its a processing plant. Majors dont buy processing plants that only do 200MT a year max. Juniors do

Tonto - alone the processing plant is small scale (30kt per month max capacity). Its the lucrative value of marula shares, the COO on the ground who is a director of a company that owns adjacent licences, and Marulas contacts with offtake partners which opens up that project for us. It needs a feasability study and drilled so Tonto is still in the bracket of junior miner project.

None of the assets are world class. Tinto could provide 15% of south africas manganese output once expanded (which would cost £10's of millions in investment first) so it has massive potential. None of the other projects are world class scale wise although Kinusi copper grades are top 10 or top 5% of anything you will see (from the limited geo work we have had done)

Larisoro is a let down. Blesberg is massively delayed. But Kilifi, Kinusi amd Tonto are all very viable projects which will be developed.

Jason lost access to £6m odd funding when AUO dropped out in may. That along side having a new auditor which (same auditor) took over a year to release Neo's accounts l, and Neo havent generated a bean in revenue to date!

Everyone is super quick to blame Jason when he has had some huge obstacles to overcome and appeara to be on the brink of bringing 2 or 3 projects online, any one of which could add £50m to the market cap once in st

The NPV figures previously supplied of course were just for the value in the ground selling unsorted ore to a processing plant. Owning the plant and the huge acherage round about does three things;

1) Increases the NPV significantly due to adding the profit margin of the processing plant to the profit margin of selling the unprocessed ore

2) Increases plant efficiency as there is now access to a massive high grade resource at surface which means lower strip ratio and less waste initially if they target the highest grade portions first until the full feasability studies and drilling programs are completed

3) Improves the chances of receiving debt funding through pre payments from an offtaker.

The plant works. The project is fully permited. Initial third party assessments including assay results have been completed. The project now has a greatly increased high grade resource on adjoining blocks

I would say the above are pretty robust pre-requisites for achieving debt financing against a future offtake agreement. The debt isn't to build a processing plant, the debt is for minor adjuatments and working capital to start mining and processing towards an initial target production volume of 30kt per month

30kt per month of 40% manganese at $4.5/DMTU = $5.4m per month revenue. Assuming 30% gross margin, thats $1.6m free cash flow per month

And thats why it has the larger price tag of £15m +/- compared to other projects which have cost £2-3m

If you compare the NPV estimate of Tonto with Kilifi for example,

Kilifi NPV

10% pre tax $48m

Tonto NPV

In the region of $200m

"a discounted cash flow analyses was completed to estimate an economic analysis of the Project and with a discount rate of 8%, the net present value (NPV) of the Project is US$469M,"

https://www.aquis.eu/stock-exchange/announcements/5487967

I was replying to Newtraders comment stating my opinion that this new project looks better "on paper" due to the existence of historical CPR's and drilling results

"Let's see Andi, on paper it looks good but so did all our other mines.."

Please provide a source to the claim that the Tonto mine was at one point owned by Vast resources otherwise your accusation could well be interpreted as baseless scaremongering. Thanks

Not sure

We were told this end of last year;

using historical datasets, the Report estimated, the exploration potential of six farm blocks of about 41.2 to 61.4 million tonnes ("Mt") containing 30 to 41% Manganese Oxide ("MnO");

· an independent resource estimation completed in 2018 identified total manganese resources of 38.9 Mt at an average grade of 37% MnO down to 100m depths

https://www.lse.co.uk/rns/MARU.PL/independent-report-on-tonto-tshipi-0tz177jab87pqn2.html

Then we were told this yesterday;

A 2023 Competent Person's Report, prepared in accordance with the JORC Code (2022), confirmed Measured, Indicated and Inferred Mineral Resources across the Derdepoort mining blocks and delineates Proven Ore Reserves of approximately 4.38 million tonnes ("Mt") of manganese ore average grade of 34.78 % Manganese Oxide ("MnO").

******

I also found this report on the mine from 2020 outlining the margins, historical drilling and cash required to upgrade the mine

https://pbcapital.co.za/downloads/SWARTKOPFONTEIN%20MANGANESE%20-%20TEASER%20DOCUMENT.pdf

None of the other mines have existing CPR, JORC or working process plants

You don't see an RNS like that every day...

At 1m per year output, 40% managnese at current manganese price ofn$4.5/DMTU, thats $180m a year revenue. Marula aiming to own 70%

Initial 20m share tranch at 5p

Stockbox interview recorded at the weekend

https://youtu.be/qRLrUXAwwDk?si=oJs93wPY8XlA1m-q

Nice poat by Sally on telegram tonight highlighting how Jason Brewer has come in and saved GCAT (now called Imara) from certain insolvency

What else has Jason done? Helped broker a deal for a £30b asset at Neo

(Via GMI)

Stepped in with over £1m of funding for Shuka

Stepped in with over £1.5m funding for Marula

Today he also Stepped down as an executive director from unicorn minerals

Yesterday he put a stop to the RTO that would have been a huge paperwork exercise, did marulas DD of Europa come up short, or were there other forces at play?

At the end of the day Jason has experience and financial backing, and you cant say he hasn't out his sweat and tears into Marula over the years

Shame this conversation didnt happen two weeks ago as this could have been raised at Europa's AGM.

The RTO will require sign off by independent competent persons so all we can do whilst suspended is wait for RNS updates on progress.

Several of Marula Africa's assets are already in production and have commenced exporting ore, including initial sales from the Blesberg Lithium and Tantalum Mine in South Africa and the Kinusi Copper Mine in Tanzania,

^^ The above is technically correct although Blesberg exports are historical and have ground to a fault

and with exports from the Kilifi Manganese Processing Plant are scheduled to commence this quarter.

^^ Exports have been scheduled since Q2, I dont see this as a material update outwith what Marula have previously said

These operations are expected to deliver near-term cashflows, supported by secured and proposed and existing long-term offtake agreements with regional and international commodity traders and major industry end users.

^^ There is Baosteel at Kilifi (international), whoever Kinusi sold the $1m of ore to, and Fujax at Blesberg. There is nothing in thisnstatement which is new or an update, due to the wording "expected", "secured, proposed and existing"