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An excellent thread on Twitter giving an insight into CoTec by GLR Capital
https://twitter.com/glr_1990/status/1623041480553074719?s=46&t=ihG9g242pwLEkN4mxgdM8A
Tweet from Rolf
https://twitter.com/rolfgerri/status/1525166216813465600?s=21&t=PW0NNf-pudeAsANxZTIBBA
https://twitter.com/MetalNRGplc/status/1462721012286562311?s=20
Stockbox interview
From RNS on Nov 1st.
Company hereby notifies the market that immediately following Admission, its issued share capital will consist of 214,581,548 Shares
Wow. I hope you don't give investment advice. 10+ years just to get back your original investment!!!!
Minus inflation losses and opportunity cost obviously.
No wonder you are bitter and blame others for your failings.
Excellent points Moneymaker.
Plenty of news in the pipeline should make the rest of the year very interesting.
Looks suspiciously like a Bed and ISA. Wise move by someone.
Great work SGD on proposing a worked calculation.
I cannot challenge the numbers, but what I would say is that Patrick’s comments have been that the aim is to get CS into production, and any approach regarding a sale is an added bonus.
As I said previously, I suspect the lack of any progress towards production is due to discussions regarding a sale of the asset.
Despite being very keen to be able to ‘cash out’ sooner rather than later (especially via a special dividend Payment – where the proceeds of the sale are distributed to shareholders), I sincerely hope that an offer of anything under equivalent to 1p per share is firmly rejected and plan A is pursued. Even with the inevitable dilution, this would still deliver better returns in a reasonable timeframe, in my opinion.
So going back to 1Investor’s point – We have options. Namely to sell, or not to sell and start production ourselves. The prize of selling has to be tempting enough, and at 0.7p, it simply isn’t.
Excellent discussion today.
I don’t have my own detailed valuation figures, but If we were offered 1p for CS, it would be 50 million ‘No’ votes from me and like some others, I cannot believe Patrick would accept that after bringing the resource to this stage.
It is very likely that something big is being discussed and there will be no news on how that is going, until a deal is done.
I still think sale of the entire business is a fantasy.
If Patrick announced a single offtake now with no funding or JV, I would see that as a complete failure as there would be further dilution.
A little more waiting to be done.
So thinking about the options PC may negotiating( May be more of course)
1) A simple off-take agreement (May be one or more).
2) An off-take with part funding for mining development.
3) A sale of the CS asset.
4) Sale / takeover of the complete business.
And my thoughts on each:
1) Unlikely this sort of deal would take so long and be reliant on such extensive testing and due diligence. Especially considering there is apparently so much interest from a number of different parties.
2) This is a good possibility. May well be tricky to coordinate this with a number of off-takers, however.
3) Personally, I think this is the most likely scenario as we know extensive testing is underway and site visits for mine due diligence have been completed. This would also prevent simple off-takes being signed with other parties.
4) Not going to happen. Companies who would be interested in the CS resource do not want to be inconvenienced by multiple other projects they would have to dispose of, or abandon.
Just my view and welcome any thoughts to challenge or add to this.
Excellent work SGD. Many thanks for posting.
Building in a few delays to the timeline, I am hoping to see an update in the next week or so. Whether it is the big one or just offtake agreements remains to be seen.
Based on all the previous tests, I think the bulk testing is a bit of a formality, however, it would be negligent for the CRMC to proceed with out doing the test, so a little more waiting is required. I suspect it will be well worth the wait.
Personally I really liked the fact the CRMC mining manager had been to site for a due diligence visit, shows real purpose.
Management have quoted Q4 this year. So not too long now.
A few notes I made from the investor call yesterday:
(In no particular order and usual caveat that it is accurate to the best of my notes)
• BFS is on schedule – work ongoing on 3 fronts (engineering designs / hydrometallurgical testing / ESG – in country, being led by Alex)
• Mine feed throughput will double from PFS ½m tonnes per year to 1m tonnes per year
• CAPEX for project will remain at around $200-250
• Higher grade concentrates in turn requires less consumption of reagents. This has a significant positive impact on OPEX
• Location for separation plant being scouted in EU or UK and they are in advanced discussions on one site in particular – announcement could be relatively soon. The location is being chosen close to reagent supplier to keep cost lower.
• Will also spoke about the exploration potential upside in the local area to increase the resource.
One of the questions was asking about comparison to peers:
Key benefits listed by Will:
• Easy, open pit, bulk mining vs narrow vein
• Easy to process ore = low cost processing
• Mixed concentrate to be made in country, again keeping OPEX costs down
• We have HyProMag!!!
Personally, I remain very confident in this company and the prospects. Great management team.
A very well reasoned post 1Investor and mirrors my thoughts entirely.
The BOD cannot withhold negative news (or to the disappointment of many here it seems - make up positive news) so it’s just a (admittedly frustrating) waiting game.
The resource and the permitting is a solid base. The only unknown is the negotiation situation and strategy. It would be very unwise and counterproductive for Patrick to reveal the progress of this.
Still holding circa 50m shares and certainly not selling any at this price.
Well it looks like the guy who sold 60+m shares here was the smart one. Quietly took his profit rather than sticking around here with all the frustrated holders.
Anybody got any concept of how long the FSA May take to review/approve the prospectus that Rolf mentioned in an interview in March? That seems to be holding up the news flow.
Latest interview.
https://twitter.com/metalnrgplc/status/1373979025102811136?s=21
Very encouraging.
Good news.
I've been nibbling away at these sub 0.7p in preparation.
I am certain that Patrick will reiterate that the CS Project is the primary focus. Question is, will CS fund the development of the other projects, or will the sale/JV of other projects help fund CS?
The former, I hope.