Member Info for Arbroathsmokey

A fund raising would have been the path of least resistance and it could be argued that paying a PR company to pump up the share price immediately prior to a raise (and an accompanying warrant issue) would be normal protocol.

However, I personally think that Altona management have engineered a funding option that may offer best overall long term value to ordinary shareholders because it ‘should’ minimise dilution. They didn’t take the easy option and I think that demonstrates good leadership.

The market cap was about £4 million and the share price over 4p when the LREO MRE was reported. We all know that dilution kills shareholder value in mining exploration companies. Some mining company CEOs get mesmerised by their pet project and forget that they work for their shareholders. I don’t think our CEO is like that. I like to think he has insider knowledge of good things to come hence he didn’t want to raise cash by issuing equity at a low price.

Hi Prospector,

Altona is currently selecting consultants to further optimise the costs associated with the 2023 scoping study and prepare a PFS. Altona shareholders effectively get the LREO PFS for free. The USA tax payer is bearing the cost on our behalf. We are hoping that they now fund the fluorspar/HREO part as well. Then we will only need to fund the copper exploration in Botswana.

For info only. There is plenty of room for both Altona and Kendrick in this market. I hope both companies succeed.

Dysprosium oxide is worth over $200/kg.

The Fluorspar JORC advises 3.48 million tonnes of rock and a 14.6 million tonne of rock exploration target at Kudu.

Todays RNS advises that the ‘significant’ intercepts weighted average is 172 ppm dysprosium oxide. Wide significant intercepts have been observed and that HREE enrichment is widespread across the Fluorite zone.

Just for fun (and if Kendrick can do this then so can we).

Assume 10 million tonnes of ore.

10,000,000 x 1000 x 0.000172 x 200 x 0.000001 = $344 million.

This is just for fun. Is this reasonable or is it complete bobbins? I failed my maths O level in 1979.

If the Americans fund the next project phase based on these results then, in hindsight, it justifies the recent funding strategy I.e. shareholder dilution is minimised.

Https://www.fraserinstitute.org/sites/default/files/2026-02/annual-survey-of-mining-companies-2025.pdf

Fair enough. Namibia is ranked 59th out of 84 mining jurisdictions by Fraser. Mozambique is ranked 78th. Risks can be managed provided they are known.

I don’t think it’s pump and dump. Your management did an excellent job job to progress your project with minimum dilution. Agree about Altona being undervalued though (however I am biased). This may be of interest.

https://www.miningreview.com/magazine-article/rare-earths-altona-advances-monte-muambe-to-pfs-stage-2/

Whilst on topic…

I think Altona is listed and traded on the Frankfurt (German)exchange ( or they used to be).

I keep forgetting we are not on AIM. Same rules apply though.

Shareholders in UK-incorporated AIM companies must notify the issuer when their voting rights reach, exceed, or fall below 3%, and every 1% thereafter within 3 days.

1% is about 4.6 million shares.

I haven’t seen any notification of a change in major holdings crossing a 1% threshold. An RNS explaining the warrant churn conversion in May would help explain what is going on.

Apologies if this is old news but it cheered me up and I needed cheering up after looking at the share price . Thought I’d share it to help who hasn’t seen it before and to raise morale generally.

“Right from the outset, we didn’t want to drill for numbers – which is easy enough but pretty pointless,” he says. “These vast resources that some companies report shrink right down to perhaps 20 or 30 Mt once reserves are defined. We’ve focused on just two orebodies – Targets 1 and 4 – and on what is mineable within those orebodies. The numbers in our MRE might be low in terms of tonnage but, at the same time, almost 60% of our resource is in the indicated category, and we expect most of the resource can be converted into a reserve. This is not by luck but by design.”

Simonet makes the point that there is scope to expand the resource. “On Targets 1 and 4, we believe we can get to 20 to 25 Mt while at the same time, of course, upgrading what we already have from inferred to indicated and indicated to measured. We also have a further nine targets that we can explore although this is unlikely to be necessary in the short to medium-term as the tonnages we have are already sufficient to support the scale of operation we are proposing.”

https://www.miningreview.com/magazine-article/rare-earths-altona-advances-monte-muambe-to-pfs-stage-2/

I wish I could edit posts. Apologies for cluttering the board. They seem to have issued the first tranche of shares ready for sale at 4p.

Ignore me I am not thinking straight this morning. It’s probably the first 12 million warrants of the financing. Ready to be sold into the market.

Replying to myself….that is a suspiciously round number. Perhaps the new shares are not all associated with warrants?

The latest RNS infers that 12 million warrants were exercised during May. There is only a finite quantity. Apologies in advance if my maths is mistaken (it often is).

Https://minedocs.com/28/Monte-Muambe-PEA-10182023.pdf

Hi, It’s me again from the Altona board. If it helps…This is the data we used for our 2023 JORC.

‘MRE has been reported in consideration of reasonable prospects for eventual economic extraction (RPEEE) using a pit shell based on a 1.5% Total Rare Earth Oxide (TREO) cut-off, revenue of 24.65 $/kg TREO in Mixed Rare Earth Carbonate (MREC) and average total recovery to MREC of 48%.’

You (KEN) could expedite your scoping study by copying bits from ours. There is nothing especially proprietary within it and it is freely available on the www with a bit of searching. Our geology is similar (they even look similar from above except ours is covered in greenery). We had the great misfortune of producing a scoping study (and formal JORC resource) in 2023 just after the rare earth commodity price crashed hence we were ignored by the general investment community and progressed to exploit the Fluorspar and other minerals (I expect you will also find fluorspar if you look for it). LREO economics have since improved thanks to American and Europeans underpinning the price to obtain sovereignty from China. I hope we can all make a decent return on our investment.

We have a safe pair of hands as CEO. I expect he understands Mozambique politics better than most.

‘Altona Rare Earths has been in Mozambique since 2021; its chief executive Dr Cédric Simonet had been working in Africa for almost a decade before his appointment and there’s very little he doesn’t know about the rare earth opportunities in Africa particularly on the East side.

Not of Mozambican descent, Simonet is definitely naturalised. The French born geologist speaks Portugese the main language of Mozambique, and in addition to English and Swahili he is currently learning Amharic as spoken in Ethiopia.

It was unsurprising therefore he was asked to represent Mozambique at this year’s Mining Indaba and give a talk about the country as an investment opportunity. The talk was well attended by those with influence.’

Hi Irishdemon.

We have so much more than that (LREO, HREO, copper, silver) but I’ll not hog your board. Thank you to everyone. If you don’t mind, then at some point in the near future me and some of the Altona chaps would like to borrow Charles Archer for a couple of days. Hope you don’t mind.

Best wishes.

Welcome Jollifant.

I think Mozambique is perceived to be a more risky jurisdiction than Namibia however Altoona’s mine is in a safe region (not dissimilar to a Malawi project). There a plenty of mines successfully operated in the vicinity.