Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Thanks, 5x5, for this link: https://investingstrategy.co.uk/mining/small-cap-mining-why-the-land-banking-in-2023/ -- I found it very helpful to understand the dynamics of financing a mining company. I only wish it had been written a year ago.
I don't know where the SP is going to go over the next month or two. I don't know whether another placing will occur. My opinions on these matters are worthless. But I am confident that sometime over the next 12 months, there will be a *very substantial* rise. So it doesn't matter to me in the least that the share price is sagging. I use the opportunity to buy more as I am able.
Like many of us here, I was surprised at today's SP drop. At first I thought it was a leak of bad news. But as the day wore on it became clear that the volume of sells was puny so there wasn't anything like a convincing sell-off. Almost all afternoon it was solid buys under .29.
Some on here immediately blame those naughty MMs for causing trouble. Who are these MMs anyway? Does a real person actually have a job of monitoring the price of UFO shares and pushing the bid/ask up and down? No, I think they're just brainless algorithms -- no sense in shaking our fists at them. Then why did they move the range down today? Was it because Anglo American are doing poorly? Yes, very possibly. But not because AA are about to go under -- far from it: their woes are temporary; they'll get back on track. They might be subject to takeover talk but that's mostly journalists competing for eyeballs. I think it's something else.
Notice that whenever a FTSE100 company (a big bank, housebuilder, pharma, etc) reports disappointing quarterly results and their SP takes a hit, immediately all the other companies in that same sector get knocked, even if they're doing all right. That's what I think happened to UFO today, being in the same mining sector, but with a clear link to AA. The MM algorithm says "AA's having a bad spell, so push down UFO; they must be in trouble too". But it will blow over.
I believe Alien has control of enormously valuable assets and the shares are grossly undervalued. I'm not bothered about a possible placement, though I don't think that will be necessary. I'm not bothered about the SP dipping down, even lurching down like today. I use it as an opportunity to buy more. I'm not going to panic.
I bought my first shares in Arian Silver 30-Dec-2010 -- can anyone beat that? (not that I'm proud of it) I've held continuously since then, though the far majority of my trades have been in the past 2 years as Alien. 8.1m at just under 0.78 ave.
I'm certainly glad for the new management that's taken shape over the last couple of years. It feels we're poised for an excellent year ahead.
With 8hr shifts we can manage 100t/day; at 5.5 days/wk that's 550t/wk = 2383t/mon.
Going to 12hr shifts at 5.5 days/wk gives 825t/wk = 3575t/mon -- closer to 4000.
If we max out at two 8hr shifts/day and 7 days/wk that's 1400t/wk = 6067t/mon.
Of course that assumes no down time, no big rains, etc.
Getting to 4000t/mon would be very encouraging and it seems a realistic goal. However, to get to 6000t/mon consistently would be a stretch. Any more than 4000t/mon consistently would need a 2nd wash plant and the means to keep it fed with ROM, and that would be a big investment.
One step at a time: focus now on achieving that 4000t/mon and save your pennies for a new wash plant -- we don't want another series of placings, thank you.
I agree with your no. 2 but not no. 1.
The US mid-terms will affect the dollar, but not because of the GOP's policy on Ukraine -- that will have negligible effect. The Republicans abhor what Putin's doing; they just don't want to send too many billions in military aid to Ukraine.
Mark Potter, Non-Executive Chair, will step down from the Board with immediate effect for personal reasons.
I don't know the particulars of the water supply at Rukwa, but any water supply problem in Africa or Tanzania for that matter has to do with safe drinking water, ie, free of pathogens that cause disease. You don't have to use fresh, safe water for washing coal -- it can be full of cholera, who cares? I imagine you just need to be near a pond so you can filter it a bit and pump it into the washer. Furthermore, you might be able to circulate the same water over and over.
Strange, on H-L I'm able to both buy and sell at 30p.