George Frangeskides, Exec-Chair at Alba Mineral Resources, discusses grades at the Clogau Gold Mine. Watch the full video here.
I'm a bit late to this, but this sounds like a great initiative BottleRocket. I'd switched off from here, as it was proving near impossible to separate wheat from chaff.
Looking forward to hearing more when you go live.
You're right robizm. I'm sure it was a typo by Agricore, as 84 million is more than the current MCap.
GGG, Corniche, Analytical
Agree with you all. Will be delighted if C1 costs are at $3. But, whatever they are, if Company guidance on 2022 production is met they should fall very fast wef June.
Hi DiamondGeazer
You're right, of course. On past form we'll get C1* costs for H1 2022 in September, when half-year results are released. They probably won't be great as there's a clear inverse relationship between production size and C1. See table from page 10 of latest Annual Report summarised below.
Saleable metal production and C1* costs
2018 4,187t Cu, 4,189oz Au, C1 costs 3.30
2019 5,299t Cu, 4,887oz Au, C1 costs 2.58
2020 3,769t Cu, 2,819oz Au, C1 costs 3.45
2021 3,418t Cu, 1,805oz Au, C1 costs 4.29
* C1 = cost per lb of Cu ($), net of credits
Low production has continued into 2022. If a big turn around is now truly underway that won't significantly impact H1 2022, so we should expect C1 to remain high (around $4/lb). But in a successful scenario we can extrapolate much lower C1 of perhaps $2/lb in H2 2022. (Two key words there are successful and perhaps.) But if I was CEO I'd be talking about how my C1 costs were significantly reduced once that state had arisen; and not wait until end year financial statements in May 2023.
Let's see.
I think 2 months of production in line with 7,000t of Cu will provide the necessary and substantial underpinning of confidence. Without that, confidence in RMM's ability to deliver will be missing. But with 2 such months people will start to look forward at the significant potential for growth in production, profits and therefore uprate in MCap and SP.
In that scenario I'll be holding throughout this journey.
We're down because at times like this money indiscriminately flees from equities - much as it did in March 2020. But remember what happened in April 2020 - before any further drill results were posted: money flowed back. All other things being equal, expect a nice bounce for GGP and other PM equities; and probably other commodity equities too.
OK. So we were hoping to see MRE2. But it's not ready. So there's no news. It isn't good news; it isn't bad news. There's just no more news today.
Quarterly production update will be released next month. Last year it was released on 8 March. Go to RNS section and you can read the last Quarterly report from December, so you know what (in format) to expect.
I agree, Burleigh, that Bablake is being pessimistic. Accordingly, I've just bought some more, as I expect the SP to rise over the next three days.
Let's see if I'm right.
So, NCM release latest drilling results on Wednesday night our time. For the last 18 months, virtually every week when there have been drilling results the SP has gradually risen in anticipation of the results. Some times the SP has then immediately fallen back on Thursday morning; sometimes it's risen initially and then fallen back as profit takers sell; some times (not recently) it's risen before and then risen some more the next day.
So what do I foresee? I don't know of course. But I'd be surprised if we didn't see a rise in the coming days and in anticipation of that I've been buying over the past week. And if there is any more weakness tomorrow morning I may buy some more.
As others have suggested, there are lots of drilling assays to catch up on and no reason to believe they won't continue to impress; and just a chance of some other news.
GLTAH. Casey
Latest drilling results late October; more drilling results six weeks later in early December; updated MRE end of 2021 or Jan/Feb 2022; full FS late 2022.
Here it is BabyInvestor
https://presentations.investormeetcompany.com/investor-meet-company/GREATLAND-GOLD-PLC-GGP-Investor-Update?bmid=a41b84a1fb1d
This is a major milestone passed; and work on the FS has already begun. I didn't see the Newcrest presentation but I understand they emphasised the "base for future growth" point and clearly expect much more in the coming months and years; and explained why the PFS has to exclude the inferred resource.
The headline figures for NPV and IRR will not impress on a quick read. But anyone close to the Havieron story should know that:
- for regulatory reasons, the PFS is based only on the 14Mt of indicated ore reserves; and excludes 37M of inferred resource (albeit that the former has a notably higher grade)
- the cut off date of February means that the PFS has necessarily excluded all drill results since then (so little more than the initial MRE of December; and of course none of the inferred resource)
- drilling results in 2021 confirm a high-grade ore body of about/at least 600m deeper than the resource covered by the PFS ("SE Crescent Deeps") - so there's perhaps 100% or more at lower levels under the existing SE Crescent
- expansion drilling covering Northern and Eastern breccias and the newly-christened North West Pod provide lots more scope to expand the resource
- Canaccord in their note of June remarked on the drilling to date yielding 6.5k oz per vertical metre, which supported their estimate of resource of 2 to 5 times the existing resource (the December 2020 MRE which is much more than that covered by the PFS).
So, the mine will be built and Newcrest will proceed to 70% and perhaps to 75% in return for payment to GGP; there is so much more to come (and soon - next drill results in a fortnight; increased MRE later in 2021). Traders and others may focus on the initial NPV and IRR, which are probably lower than they expected for the reasons above. But I think this will do well over the medium term.
Hi Bonkers
Newcrest aren't much interested in causing a stir; or in the very short term impact on the Greatland Gold SP. They're releasing three PFSs together, one of which is for Havieron. Their principal aim, as far as I can tell is in getting institutional and other investors fully briefed on the studies they're releasing - so three for the price of one makes some sense.
Here's the link to Oilplayer's tweet:
https://twitter.com/Oilplayer2009/status/1445804182590484482
Hydro
All Newcrest statements that I've seen have talked about a PFS, not a (bankable) FS. They'll be using the definitions set out in the Australian JORC. It's not a matter of messing about. They're doing it by the book (the JORC), as far as I can tell; and at speed, with an expectation that they'll move quickly to a full bankable feasibility study in 2022.
It's a Pre-Feasibility Study, StarBright. The full Feasibility Study is planned for 2022.
Hi contrarian
See this RNS of 1 March, on the appointment of Michael Drake as Head of Projects.
APPOINTMENT OF HEAD OF PROJECTS
Horizonte Minerals Plc, (AIM: HZM, TSX: HZM) ('Horizonte' or 'the Company') the nickel company focused on Brazil, is pleased to announce the appointment of Michael Drake as Head of Projects.
In his role as Head of Projects, Michael's primary responsibility will be overseeing the development of Horizonte's two 100% owned projects, the Araguaia ferro-nickel project ("Araguaia") and the Vermelho nickel-cobalt project ("Vermelho"). Work is currently focussed on starting construction at Araguaia subject to closing project finance, while Vermelho is being progressed through to feasibility study and permitting. Michael will be based out of the Company's Brazilian headquarters in Belo Horizonte, where he will work closely with the Company's in-country team.
Michael is a Mechanical Engineer with extensive international leadership experience in the construction, operation and optimisation of medium to large capex projects, with extensive expertise in both ferro-nickel, and nickel acid-leach operations. Prior to joining Horizonte, Michael worked for BHP, Newcrest Mining, and WMC Resources. At BHP, Michael led Cerro Matoso's US$350 million ferro nickel production line refurbishment with a complete furnace rebuild in Colombia. As Vice President: Projects and Engineering at Nickel West, he was responsible for the implementation of a US$5 billion capital investment programme, and he led the asset ramp-up phase of the Ravensthorpe nickel operation in Australia. Michael is a graduate from Curtin University and also has an MBA from the University of Western Australia.
Commenting on the appointment, Jeremy Martin, Horizonte's CEO, said: "We are pleased to welcome Mike to the Horizonte team. He has extensive experience in developing, operating and optimising nickel operations, his experience across both RKEF and HPAL technologies is well suited to the development of both of Horizonte's projects.
Mike will oversee the development of Araguaia and Vermelho in Brazil and will also be an invaluable asset to the corporate team in London. Horizonte has the capability to build and deliver the Araguaia ferro-nickel project, as well as simultaneously progressing Vermelho. The continued development of the broader team is a critical workstream as we advance our transition towards becoming a nickel producer."
You sure about that, merc?
I've not seen it. I think we're still waiting for both Red Chris and Havieron PFSs, notwithstanding SB saying the former was expected by end of September only a few weeks ago. Obviously, happy to be corrected if I've missed it.
BTW, the quality of the research on this share chat page is second to none.