Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
put another way - work fills the amount time available...Parkinson's Law
@D-k... accepting "the need for a given product" the pace at which things move generally boils down to risk takers - decision makers - resource allocation - govt. regulation. O&G permits just as an example can provide 3-6 years for Exploration and 25 years production life. No harm in laying down the challenge to shorten the Exploration phase (or any industry with an "R&D" phase in the absolute broadest sense of interpretation). This wretched crisis has provided an example that the right mind sets and a collective goal/ambition can move mountains.
@D-k
replying to your question, hopefully SRES market cap. will bag from where it is today (c. £9.5million) on the strength of CS Project. If the P-P mkt is robust, there is upside in the North East Zone and possibly NewPerl that could follow.
What do I think the SP will be over 6-9 months - that's dependant on results of concrete tests (I choose not to attribute value to precious metals mines pending tests or for staked claims) and the pace at which PC is able to move forward. Notwithstanding Pozzolan properties may differ between mine sites - I am hopeful news of KMC moving to production mid-2021 has de-risked CS testing / project.
For an investor with limited funds and competing opportunities "timelines" (not to mention the bid/offer spread) are something to agonise over a bit. We can all be patient - but at what opportunity cost?
@Samspade4
thanks for posting links
@justone (and all those who recommended)
it doesn't work the way your describe. if the assets are appreciating and hot then market participants will know. opportunity to earn a stake in the would attract bidders (2+) as the exploration risk has been removed. the bidding process would increase the price. "hanging the for sale sign could invite a low ball offer" - this happens if the sale process was a distress sale due to financial health - which wouldn't be the motive for SRES .
you say you expect PC to go to production - historically the strategy for SRES has been to explore and if successful, seek to exit at that point (a high risk strategy). to balance risk to buyer this has been structured in the past through royalty agreements or a buyer's option. My view is CS is a perfect opportunity to become a Producer creating annual cash flow.
if SRES was to "say" (as you put it), that it plans to go into production and then pursue a disposal - that creates a mixed message. it would trigger an alarm new information might have increased the risk of the project economically moving in to development and production (either from a project or a corporate perspective). that would not be a good perception for SRES.
tactics are about managing perception - perception with mineral exploration is addressed by giving access to data rooms. trying to nutmeg the goal-keeper isn't the way it's done - and industry participants understand this.
I agree patience is required - my only point here has been CS is an "above ground" open cast mining opportunity. Mining rock does not get less complicated than this. I don't agree with chasing the silver/gold rush given Pozz was a stated corporate goal - and SRES has its "discovery". As far as I can tell, there has been no news on NewPerl... if as you say assets are hot... how would you explain that ? Fundamentally, that's to do with prioritisation and allocation of company resources. An aspect of the company strategy is to "incubate". I would prefer this to be "accelerate". It sends a message of getting things done.
Even if KMC does not directly impact SRES ability to dispose/produce CS, KMC has demonstrated a value chain can be created between Mine Co. and CRMC (although no mention of higher value perlite). If the "incubator" had been an accelerator - SRES might have crossed the line first.
Vaccine developments within 1yr rather than 10yrs serve to highlight.
Nothing in this post is ramping or deramping. All IMHO.
I would challenge selling. The North East area has not been fully explored - but PC is bullish after minimal drilling. The entire area has potential to be a self-funding cash cow for SRES for decades. If, as you expect, prices will increase - your buyer won't pay today on your speculative price outlook. You lose out value. This should be SRES golden goose - to nurture.
For the avoidance of doubt - I do not have an SRES downer. I am bullish after a long wait. But there is another miner leading the way, when I would prefer this is to be SRES. Back in 2017, the ambition was set by the Board to achieve production - SRES still not there yet - but another mining operation is.
Resource cycles are hard to predict. To manage this contracts (not spot-pricing) typically have indexation or re-openers to balance economic interests of buyer and suppliers through resource cycles.
This is not a downer.
This is an encouragement to catch-up and deliver on the 2017 strategy.
4-May-2017 Extract
Board Strategic Review ? Board to focus current management and financial resources on development of CS Project into production and other natural pozzolan opportunities.
@Twiggysparks... it about project delivery and generating +ve cash flow from sources other than equity. CS Project has Main and Tuff Zones. Either of these should be nearer to or be generating revenue by now. There is significantly more that could follow if the North East Zone is proved and with different commercial terms attached. Natural resource developments often take place in phases. On your thesis - if the market is getting stronger - when is it that you do actually start??
@justone thanks for the post. No instructions to me needed. It's SRES this BB is here to discuss. Today's SP reflects in part how far SRES has progressed (or not) the CS project since acquiring in 2016. So that's PC you should thank not me. Read Beaufort 10-Jul-2017 if you haven't yet. There's not much different about CS project between 2017 and 2021. Significantly, still not in production - but as always full of potential (hallmark of a geoscientist). Beaufort's note is interesting as it signalled a change in strategy. A positive change in my view for SRES - to move into a production/sales phase which could fund opportunities rather than successive dilution after failed exploration. CS should have been the focus until reaching first production on the back of the strategic shift. It's a fact (unfortunate) that KMC has struck a Pozz deal before SRES and will start production mid-21 (news yesterday) whilst SRES continues to wait on CS test results. Their 500ktpa will infill the CRMC fly-ash declines. The good news is that particular CRMC sees growth in 2022 - suggesting there is local market opportunity. I would have liked SRES to be in KMC shoes 'today'. I believe it could have been. 5 years is enough time to monetize "an above the ground mineral discovery". Offshore oil is monetized quicker. CS Project is a great opportunity - should be progressing a faster rate. KMC shows this. If you think 5 years is ok, then let me know with your insights rather than label my post a downer and inviting me to move on. When there is something to cheer about, I will cheer. Plenty of post who just launch into criticism of the person's rather than offer an alternative interpretation of the facts about the company. That's a pity.
Off the back of CS project, I'd like to see SRES mkt cap £60-£70million. But who knows what the SP will be at that point though. As of 30-Sep-16 there were 1.1billion shares in issue. Today there are 3.7billion shares in issue . FID before 4Q21 and no more dilution will be an SRES win, given where it's at today, as far I'm concerned.
@terrapin - shouldn't you be doing on-line schooling ? Do you only play on this BB to hurl insults.
This BB is like taking a wrong turn in the Bronx.
@terrapin - is that the most meaningful contribution to a BB you have ?
@fulmar29
@bull most of my fingers are getting really annoyed with me for bothering to respond to you, only one of them wants to send a message.
So don't reply. Re-apply the lube and pop them back. Other throwing out inane insults - you haven't made a sensible comment regarding SRES or the CS project.
@fulmar29 - likewise. Nothing in that said to SELL. Re-read it.
@Terrafin - great something at last you knew would happen.
Tell us something about SRES and CS project that you know or expect will happen....
@D-k
what's your view(s) on first production from CS ?
@fulmar - please send the text of your claim in case I should clarify (I made no such suggestion to sell SRES) . You have already misread one of my posts - which I have just clarified in my last post.
@fulmar29 - I took care with my post. I suggested to choose a share and "not" invest in it. Merely as a benchmark.
There is nothing wrong with my logic. PC will be looking at a various scenarios to determine a plan forward. The greatest concern I have - is non-delivery of CS on 2021 and the reasons behind it. There hasn't been a post here today which can address that, so I remain unconvinced.
@Terrafin- the economics are not hard to do. It's something I've done before as an analyst. All the information is in the Mining Application for SRES (and KMCs). You could do it if you chose to. Work the scenarios on the split between grades and prices and the potential increase in State Taxes to Mining operations (you know about this right ?), possible JV structure. You get a sense of the cash flows involved and the upfront investment needed. It's modelling work PC will be doing to get financing and commercial agreed. For timelines check KMC. Permit approved Dec-18. Jan-21 KMC has a JV in place but not yet in operations. And they are working this on home turf. What information are you relying on that SRES can achieve anything similar and faster ?? If you think I am deramping (which I am not) you will see D-k has a perspective of the challenge ahead. Good luck with your holding.
@Terrafin @Fulmar - you should look over the material which others have pointed to (research).
My posts are not de-ramping. Significant time consuming operational and commercial hurdles lay ahead. I've run the economics for myself including potential changes to state mining taxes.... PC has a formidable challenge to monetize. And I am entitled to a thought silver mine will not add value or support the CS cause (without it being labelled deramping).
@fulmar29 - to make the silver ecomonic - what volume of silver will need to be mined at $27/oz ? How quickly will that mining capacity be put in place or the asset monetised with a sale/royalties. There is a difference between de-ramping and what I am putting forward. It's research and some thought. I'm not optimistic for the silver results. It doesn't make this a de-ramp - its an expression of a different and plausible outcome. Remember - it was PC promise last year (not mine) that was CS in 1Q21.
If you see it different - tell me your timeline and project plan to monetize that puts both silver project and CS project into 2021 ??
I am thinking strategically. The volumes here are relatively small - margins are slim - and the time to monetize is too long. Pick yourself another share. Don't invest in it. And I bet you in 6 months time - you will have a better percentage gain than sitting around here. Time will cost money - that SRES does not have - that means more dilution. It might look good to you now, but if you are a strategic thinker - where does the operating cash comes between now and the end of year ?