Member Info for Andii

$1b is the "in-situ" valve of the lithium so far discovered at Blesburg.

The company valuation is not the same as the resource value.

In Marula's case, they have many different projects each with different resource values. Blesberg is only one of 7 or 8 projects in the portfolio but gets the most air time as it is the closest to revenue.

Here is a 2023 guide on valuing junior mining companies

https://www.cruxinvestor.com/posts/how-to-value-mining-companies-a-guide-for-investors

"In the mining sector, larger diversified miners often trade around 5-6x cash flow."

In the case of Marula, we are excepting around £30m+ free cash flow based on 5000T of lithium a month, if each tone can sell for an average of $1000/t.

That gives a target market cap of between £150m to £180m which is 10x todays market cap.

$1b comes from the evaluation from QGC, the billionaire mining partner who paid for and built the mining equipment to fast track Blesburg to production

https://qgc.co.za/metals-2/

"The 0.35 Mt tailings dump alone on the Blesberg project will conservatively yield 12% of spodumene with a 5.6 to 6.1 lithium content. Immediate value lies in the in situ resource of approximately 0.78 Mt at around 6.0% lithium content, which will increase the current estimated value of US$ 543.96 Million to an expected growth in evaluation of US$ 945 Million"

https://youtu.be/j5VOfPzrxCo?si=w-jJv5c4i7At449v

From 28miniutes They talk about Belsberg

They have drill tested the first 2 hectares, there is a further 4 hectares they are going to be drilling, "proving up our just under 1MT of lithium"

(Blesberg is a ) "52 thousand hectare property"

"We understand that belt continues"

So if 2 hectares is worth $1billion, what is 52 thousand hectares worth?

And Korriodor is 80x larger

Here is a 10 part twitter post showing what Marula mining are involved in.

https://x.com/Chuggley1/status/1750214216525443216?s=20

The 70% owned korridor asset is surely mouth watering.

80x larger than Blesberg, and the initial Blesberg initial resource has been independently valued at $1billion by QVC, and that could grow considerably with future phases of exploration.

Blesburg lithium mine 24th January

https://x.com/MarulaPlc/status/1750161251106205988?s=20

"The successful first bulk testing and first production of product has now been completed."

Blesberg lithium mine 7th November

https://x.com/MarulaPlc/status/1721898079304224833?s=20

"Production of approx. 40 to 50 tonnes per day of a +20mm saleable high-grade lithium spodumene product is forecast from the initial processing circuit"

** so the original plant was capable of producing 1500tones per month of a saleable product. This was originally to be sold through the original offtake to the Chineese partner. For unknown reasons, this deal fell through.

Falling Lithium price dictated the original offtake agreement was no longer fit for purpose?

Maybe dealing with the Chineese was not part of QVC's vision for Blesburg due to QVC's wider market connections/reputation?

Maybe a better fit for purpose deal could be negotiated based on 5000T of higher grade refined product soon to be available with the new processing equipment, sold into Europe?

OLD OFFTAKE - 1500T of crudely processed tailings

NEW OFFTAKE - 5000T of low impurity, high grade spodumene factory tested by highly experienced multi billion $ mining engineering firm QVC

***************

Blesburg lithium mine 15th November

https://twitter.com/MarulaPlc/status/1724749953078026294/photo/1

"Phase 1 drilling program at Blesberg Lithium Mine

✅Completed with 21 diamond drill holes completed for a total of 1,136.67 metres drilled.

✅All samples from the Phase 1 drill cores have been prepared and dispatched to ALS Laboratories in South Africa for assay and analyses"

**We know what we have now over the first 4 hectares of raw minable material and it is enough for well over 2 years of production. This confirms the initial sorted tailings 1500T/month offtake contract is totally dead in the water.

Bring on O/T part 2

******************

Blesburg lithium mine 22nd November

https://twitter.com/MarulaPlc/status/1727240727917437322/photo/1

**70% mining rights to Korridor aquired. 30miles away and 80 times the size of Blesburg. The geology is the same, the offtake is in the works. we need a bigger boat.

******************

Blesburg lithium mine 1st December

https://twitter.com/MarulaPlc/status/1730551907523920218/photo/1

"the Company is completing an expansion and installation of new equipment to materially expand the ore processing capacity & the production of up to 5,000 T per month"

*****************

Blesburg lithium mine 5th December

https://twitter.com/MarulaPlc/status/1732011761270710310/photo/1

"Erudite Strategies Limited appointed as project managers to oversee the installation and commissioning of the expanded process plant and XRF Ore Sorters at Blesberg"

"Goal: Boost operating efficiency, cut costs, and maximize high-value spodumene recovery."

******************

Blesburg lithium mine 13th December

https://twitter.com/MarulaPlc/status/1734847291175874655/photo/1

"Installation of Rados SRF100-8 XRF ore sorter is complete

Commissioning of the Rados SRF100-8 XRF ore sorter to commence this week"

Not generating revenue - yet...

Blesberg is however already producing/sorting/optimising 6% lithium spodumene

& from the december offtake RNS

https://www.aquis.eu/stock-exchange/announcements/4403528

~All key terms have been agreed and an exclusive marketing and offtake agreement with a major European based global

commodity trading group for the production from Blesberg is being finalised

~The Agreement is for 100% of the spodumene, carbonate and other lithium products that are to be produced from

Blesberg

~Marula had originally anticipated to have the Agreement signed by the end of 2023. However, the Company now aims to

have the Agreement signed once commissioning of the new processing facilities at Blesberg are completed in January

2024, with first commercial sales to follow shortly thereafter

~The Company already has approx six months’ worth of stockpiled feed for the new processing facilities and expects first

saleable product to be available under the Agreement early in Q1 2024

*****

Sounds very much like revenue is due this month/this quarter. And we know the cost of production is under $300/t, market rate for SC6 is around $1000/t, and the equipment is expected to produce 5000t a month.

From zero revenue to millions of £ profit per month, as early as this month. This figure will increase over time as the last pieces of processing equipment are added and the Ai is optimised

Here it goes. Marula chairman interview from earlier today

https://twitter.com/Share_Talk/status/1753066100391391518?t=fo5cYhT28LryOUg0XwzTiQ&s=19

Blesberg US 1 billion plus

Keinusi. uS 700 million

I believe those are initial estimates and will grow many times over as the assets are further explored.

Anyone got a link to the video they released today?

Ah my bad. Thanks for correcting me.

So if we added QVC's 100m shares today, the market cap would be £28m, almost the £30m required for London main market listing.

All we need now is some revenue to build up the cash position enough to cover working capital for a year

From google;

"For all companies seeking a listing:

The expected aggregate market value of all securities to be listed must be at least £30 million (approx. ...

The company must have sufficient working capital for the group's requirements for at least 12 months from the date on which the prospectus relating to the listing is published."

Plan is I believe to go for a London main listing.

Market cap has to be £30m and have to have cash reserves to cover working capital for a year.

Dual listing in Kenya will happen first, and the offtake signed. QVC shares then need adding to the register. If they were added today (100m shares), the market cap would still be under £15m.

Long story short, share price needs to be over 20p and Marula needs to be selling lithium before we get a london main market listing.

Forecasts are we should be making a profit multiples of the current market cap very soon so chances are, those waiting for the london main market listing will be paying a huge premium on today's share price.

The dividend was a procedural requirement for listing on one of the exchanges.

There are only 56 companies on the nirobi stock exchange and no mining companies.

Don't forget that Marula also aren't yet producing revenue which probably makes the whole process a lot more complex.

Ever tried to sell a house and been told 6 weeks and it took 6 months?

The billionaire investor/developer & financer

https://www.youtube.com/watch?v=j5VOfPzrxCo

Recent short CEO interview

https://www.youtube.com/watch?v=x-4m5QHWF0g

Extended CEO interview giving comprehensive overview of company

https://youtu.be/oIuGOOyx8Lc?si=MPbJ9fzjC_XR-tYK

Dividend policy

https://www.youtube.com/watch?v=I288uYxNBOI

the original offtake agreement was only for two payments, an initial upfront payment and a future payment if the product delivered was suitable.

https://www.aquis.eu/stock-exchange/announcements/3799106

the agreement fell through for whatever reason. the falling price of lithium, new partnership with *****on and the need for extra processing equipment likely all factored into this decision. (5% lio2 would have had nice margins a year ago but the price has dropped so much, 6% lio2 is now required which involves the processing/sorting equipment currently being optimised)

the initial $2.5m was repaid in shares at a share price over 3x the share price at the time of the initial deal. a deal like that is just incredible value add for a small cap company.

as for confetti for extra licences? 1m shares for 9 new graphite licences? it's less than 1% dilution. seems like good strategic moves to me.

looking forward to future deals once we are profitable in the near future.

I could easily show you half a dozen other small cap exploration miners and presentations from years ago stating they would be in production by now.

Timelines often slip by many years.

(Productuon) timeliness here are only slipping by 2 or 3 months. And in the case of kinusi the copper mine, it is because third party testing found issues which require modifications to the plant. That's part of the testing program. Imagine they found out these issues after installing and running the machinery on site. That would be a bigger headache.

We aren't dealing with a cowboy outfit here and a few missed targets are perfectly normal and often outwith management's control.

Marula on track to have no debt and 8 figure profits in 2024. And that's from the Lithium assets alone.

Pick any other lithium miner out there with their plants taking 4 years to plan and build with huge debts and compare it to Marula.

I think the management deserve a little leeway against the falling lithium price and current market conditions. I would say progress has been pretty good. All major cspex items paid for, currently delivered or about to be delivered. And with no debt.

Https://m.miningweekly.com/article/marula-commissions-rados-xrf-ore-sorter-at-blesberg-mine-2024-01-25

The billionaire investor/developer & financer

https://www.youtube.com/watch?v=j5VOfPzrxCo

Recent short CEO interview

https://www.youtube.com/watch?v=x-4m5QHWF0g

Extended CEO interview giving comprehensive overview of company

https://youtu.be/oIuGOOyx8Lc?si=MPbJ9fzjC_XR-tYK

Dividend policy

https://www.youtube.com/watch?v=I288uYxNBOI

Marula mining is one of the cheapest producers of SC6% lithium in the world.

SC6 prices have crashed to perhaps $1000 (or maybe less).

The Marula production cost is under $276/t and the plant is already commissioned and online with ramp up/optimisation happening now with a target of 5kt a month.

Off-take agreement is almost over the line & signed. The european off-taker has already tested and qualified the product.

Gross profit could be in the order of $600x5000t = $3m a month.

Lithium stockpiling looks like it may begin very shortly. $1500/t would be nice generating over $5m gross profit a month.

https://twitter.com/mineralsmindset/status/1748925725913272493?t=2KrVlBKkAS3wD2oAXemaLg&s=19

The 1.8m sale was 11am yesterday

Good morning. Would you be willing to share your calculations?

What is the difference in price for SC5.5 (the DMS output) vs SC6 (flotation output)

The plan is for 4 years at 130ktpa output then after 4 years, the plant will be upgraded to flotation for a further 6 years of 238ktpa

Using a capital intensity figure of $650/t for SC6 vs $1000 selling price, I calculate a profit of $350x238,000x6 devided by 0.49 (kodals 49% share of the project) = $249m profit before tax for the years, or $41m per year. A reasonable PE ratio of 10x would therefor assume a market cap of $410m from 2029 onwards once the flotation plant is operational.

The multiplier is the Lithium price. $350/t margin becomes $850/t @ $1500/t SC6 which would gross $606m over those 6 years

Here's a snapshot from a research report from March 2023

https://ibb.co/4gzyJRR