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Good afternoon
Here is the Asiamet resources DFS - the company you are invested in and told us was a better investment
Initial 9.2 year mine life producing up to 20ktpa of copper cathode per annum
• Life of Mine (‘LOM’) Revenue of $1.4 billion and EBITDA of $655.3 million
• Capital cost of $208.7 million (excluding growth and contingency $26.7 million)
• Post Tax NPV8 $162.8 million, IRR 21.0% (post tax, excluding closure costs)
• Payback Period 3.4 years
To summarise, this plant will take another at least 2 years to fund and build and cost $200m
Over 9 years it will.make $1.6b
NPV will be $162m
That's a very poor return.
Blesburg, Just ONE of Marulas project is likely to make $200m in 2.5 years. AISC is $500m for every $1000 revenue on lithium alone. The free byproducts are another $500/t.
Run that through your calculator, and they will see over $750m FCF or NPV back.
Capex? $5m
Time to profitability? 18 months
Number of shares? About 400m
ARS have spent about £40m over the past 5 years and haven't made a penny.
2.59b shares in issue
A way, congratulations on finding Marula.
The Kinusi at Marulas copper mine they know extends at depth by the way as the original owners have peppered mining shafts along the strike. Effectively a free drill hole if you like.
Https://twitter.com/JB_MiningAfrica/status/1771102517205586382?t=sw_ciSfcGCVoPdAlo1fttw&s=19
"In addition to the spodumene sales, Blesberg will also look to complete sales of:
⚒️ tantalite and coltan
⚒️ feldspar
⚒️ mica
These sales of by-product minerals have the potential to completely offset the operating costs to produce the lithium."
Https://twitter.com/JB_MiningAfrica/status/1771101570354016690?t=7HqaCXMzIQK3EKPQ3hoVZA&s=19
Between now and December 31st 2026, at todays lithium price, Marula are planning to generate $150m from lithium sales alone.
Add in the byproducts on top of that and we could be talking over $200m from that one mine.
FCF I'm guessing around $50m a year from Blesburg alone.
Kinusi copper mine expected to do similar things
Here is Jason's official reply to Dee's queries
https://twitter.com/JB_MiningAfrica/status/1771043837172982188?t=YxYWpoxQ8k9vcxeEMUujvQ&s=19
1)A great discussion with Dee who whilst asking some very pertinent and important questions unfortunately made some incorrect conclusions.
Our transaction with QGC has allowed us to rapidly grow our business with the support of a major mining company and investment house.
2) We've entered into a number of agreements with QGC and these have provided funding to advance our Blesberg Lithium Mine to production.
A lithium mine considered one of the Top 10 in Africa.
This funding has allowed us to develop and advance our other projects in parallel.
3)hese arrangements extend to co-development opportunities and also a broader relationship.
There are few other junior mining companies that have such a partner.
There are few other companies that have experienced such growth on the back of such support.
4)All of the agreements with QGC have been available to be reviewed by shareholders and investors.
These agreements have all been published and can be accessed from our website and through the 'Investors' section.
A commitment to our shareholders of being open and transparent.
5) I am sure you will agree that it is not often that junior companies make such documents openly and fully available to shareholders.
From the outset Marula has prided itself on being open and accessible to its shareholders.
I am pleased that this further demonstrates that.
----
The full suite of our share subscription, relationship and co-development agreements with QGC are available on our website along with the subsequent addendums.
A clear commitment to transparency and to our shareholders.
Link here >>> marulamining.com/qglobal.html
On the zoom call last night, Jason was quizzed on 70% owned Kinusi Copper project.
Here are the assay results from phase 1 exploration program (5th October)
https://www.aquis.eu/stock-exchange/announcements/4292346
So reading this again, the average grade of samples was 2.68% copper. This included samples of 0.1% copper taken outside of the mineralised zone.
High-grade assays from the Sasimo Prospect included 15.48%, 11.69%, 11.03%, 8.11%, 6.55% and 6.54% copper
the main Sasimo Prospect at Kinusi, where assays results of up to 15.48% copper have been recorded on the copper mineralised corridor that extends for over 1 kilometre (“km”) length and over 300 metres (“m”) in width and where an initial Exploration Target at Kinusi of a 10-15 million tonne (“Mt”) deposit of high-grade copper, gold, and other base metals was estimated by Geofields Tanzania Limited
The above to me suggests that the average grade of the 300mx1km at surface strike will be significantly higher than 2.68% copper.
The plan now is to initially go for a copper cement product which will be worth 80% of LME copper price (currently $9000/t)
Kinusi revenues will start in Q2 and are expected to be simmlar to Blesburg which we anticipate being over $50-75m/year lithoum + byproducts once production ramps up.
Full updated report due internally to Jason next week and an RNS update will follow.
Thank you Zan_TM, the expanded and on point response I was looking for.
I will now add kOD to my watch list and keep myself updated on news releases.
I was originally invested around 2018 at 20p when the first JORC arrived. I think I sold out at 14p as investor interest wained following placings and a realisation of the wait ahead to get to this stage you are at now. Good luck
Gotham, when Dee said zero drills have been put in the ground, he was referring to Kinusi high grade copper project, not Blesburg.
At Blesburg, 42 diamond drill holes have been completed for a total of 2,386.67 m drilled. AORC maiden resource declaration is due very soon based on the initial phase 1 drilling results and should be expanded further once phase 2 drilling is incorporated.
https://twitter.com/MarulaPlc/status/1732300256925123012?t=RiaIvIKuvx8fNGqqRzza_Q&s=19
As for Kinusi copper, phase one exploration was all about samples and trenching/assay results. That is all complete and provides sufficient data to build the phase one processing plant
https://twitter.com/MarulaPlc/status/1696440661002580354?t=yYNG2nHoxvZY6XiV2bmm3g&s=19
Phase 2 1500m drill program is still underway, I believe they are improving the access road for drilling equipment.
The original plan has now changed and they are targeting a copper cement product which achieves 80% LME copper prices/t (copper currently at $9000/t)
This was from last nights zoom call and from memory. A full report on the Kinusi recommendations from the new General manager Yana will be available to Jason next week and a full RNS update will be released detailing the results and plans for Kinusi.
There are around 200 messages a day in the Marula telegram group if anyone is interested in joining
📢7pm Tonight, join #MARU's CEO Jason Brewer on a live interactive Q&A Zoom session.
⏳Time 7pm GMT / 10pm GMT+3 / 9pm GMT+2
📍 Zoom Link ➡ us05web.zoom.us/j/89158789787?…
Meeting ID: 891 5878 9787
Passcode: 5zN07K
Questions can be sent to info@marulamining.com
Zoom call tonight at 7pm, look out for link on social media
A £30m market cap (any day now with extra Q global shares agreed at EGM) and a years working capital.
I'm hoping the Nairobi and Johannesburg stock exchange listings happen this month and we get an RNS that revenue has started from the Manganese mine whish shoud cover the majority of working capital needs.
There is also the extra 43m shares at 10p Q global can subscribe to, maybe they will take a tranche and give us some extra working capital enough to satisfy LSE main market listing.
You wpuld think the LSE listing would happen quite soon after the others?
I didn't say there was debt yet.
I said at todays spod prices there will only be $50m available to build a $175m plant by 2026.
You say highly profitable but it isn't really if Spod prices drop. Is there enough ore to feed the DSO beyond 4 years if stage 2 is delayed?
Depends on EV uptake and new supply coming online
Some forecasts don't go above $1250
(sorry for the source)
https://www.fool.com.au/2023/12/18/heres-the-lithium-price-forecast-through-to-2026/
Sorry to bring this up here, I normally wouldn't but Daz came over to the other board commenting
-another shoe box being passed off as a production.
-Seen bigger rig in digger land.
So as he seems to be so knowledgeable, I thought I would do some DD on Kodal and found the following:
I had a look at the feb 2024 presentation and had some questions to ask about the projected free cash flow and company structure.
https://kodalminerals.com/wp-content/uploads/2024/02/Kodal-Investor-Presentation-FINAL-February-2024.pdf
"The remaining 49% of KMUK is owned by Kodal Minerals plc with zero additional development capital
required to bring the Bougouni Lithium Project into production"
Does this suggest that KMUK receives all revenue/profits, and by extension, the 51% HongKong/Chineese owner is entitled to 51% of profits? So any profits will be split 49:51? Would that cash/profit remain in KMUK and be paid out as dividends?
"zero additional development capital required to bring the Bougouni Lithium Project into production"
I take it this is the stage 1 - $65m capex plant (project into production), and the KMUK entity will require to cover the $175m stage two plant due to come online 2026-36?
So based on $2080/t Li2O price, KMUK is targeting $712m FCF over 4 year life (2025-28).
Presumably they need to start building stage 2 in 2025 to come online in 2026? What FCF are they expecting in 2025? $178m? ($712/4) Sounds like every penny will be spent on Stage 2 in 2025.
That's acceptable as FCF from 2026 should be quite reasonable.
What happens if lithium prices stay at todays price of $1050/t? The new calculation for FCF then becomes
$1050 spot price minus $647 AISC = $403/t profit x 125kt/y = $50m FCF/year x 4 years = $200m.
In this scenario, stage 2 plant will not be build until 2029 using only FCF as the Capex will surely creep up over 4 years due to inflation.
They could probably get a debt package to accelerate the project, they would need $100m+ (based on a slight improvement of LiO2 prices)
On paper, it doesn't look like Kodal will be paying or receiving dividends until the end of 2026, would that be fair? Unless lithium does hit $2000/t in which case all bets are off.
Has there been a recent feasibility study done on stage 2 (2026-36) production?
Will the AISC per tonne at stage 2 be higher that stage 1 $647/t?
If so, there is a scenario where AISC is say $750/t and spod spot price is $1050/t then FCF per year would be $300x230k = $69m a year.
Kodal PLC would be entitled to 49% minus any ongoing debt payments
Offtake agreement video interview:
Https://www.youtube.com/watch?v=b39sFN_hXcI
Key points:
◇Lithium asset only owned for 16 months
◇Test work ongoing to upgrade to a hydroxide or carbonate process $$
◇Targeting well over 5 thousand tones a month final product
◇Minimum average grade of 5.5% Li2O but targeting 6%
◇Total costs under $500/t including all fees and transport to port
◇Tomra sorter with 5x capacity due on site end of this month
◇Outputs will be spodumene, tantalum, feldspars
◇Increasing stockpiles of material at the moment ready for first sales in May
◇Mining equipment on site already is capable of much larger production volumes than the minimum stated in the offtake agreement
◇80% payment at port in Cape Town will help with working capital and other mining projects within the portfolio $$
◇Mining plans already submitted for a 10 year operation but plans to extend that well beyond 10 yrs
◇Plans to open satelite mines and go well beyond 5000T/month (very easy to do under current licences on adjacent properties)
◇Mining engineers and process engineers doing all the analysis and mining studies, no funding required so no need to spend time packaging the data into publishable feasability studies
◇Test work, drilling, resource studies and mining plans done. Funding there, equipment is on site.
◇Why no pre payment on the offtake? Because they don't need it!
Jason Brewer
@JB_MiningAfrica
Feb 22
"This video also shows recovery of the by-product minerals such as tantalum and feldspar.
When you count these "by-product credits" it more than covers the majority, if not all, of the operating costs to mine and process the spodumene ore.
Now thats low-cost."
https://x.com/JB_MiningAfrica/status/1760655136882327939?s=20
Here is the billionaire investor.
https://youtu.be/j5VOfPzrxCo?si=w-jJv5c4i7At449v
Blesberg discussed just after 27 minutes.
They have drill tested 2 hectares and have a target to drill test a further 4 hectares. But the total property is 52 thousand hectares.
Jorc and competent persons reports are due soon.
They have the finding and the economics are sound so why was millions and spend years doing a DFS?
They also acquired an adjacent lithium property called Korridor which is 80x larger than blesburg after conducting an aero mag survey and getting excited
2k a month is the base line min order size. Plant at the end of march will do 5k a month minimum and the byproducts on top of that 5k are worth $500 for every tone of SC6.
That 5k plant only cost $2m. Think how easily and quickly that could scale. For example, 50kt a month SC6 for $20m capex?
We have a billionaire about to joint the board too. RNS due any day
G.R 2.0 lol! He's only been in charge for 18 months and is about to start making a profit with hardly any debt. I can see Marula overtaking both Prem and Kod with volumes of SC6 medium term, profitability and market cap short term. Kodals multi bag probably not due for at least a year. Marula, 2 months?