Member Info for ChameleonMan

There will be plenty of news to come but it’s more than that. Every pound spent on proving up the resource is adding value to the project. It takes time but the feasibility study is due out this year which will help to crystallise value. Then I would expect any cash requirements to come from offtake/ investment deals with key industry players. We may also have pocketed £5M from selling Oman before then!

Nothing has gone to pot! You can’t stop people selling for their own pessimistic reasons and when volumes are relatively low the effect is amplified. “Pessimism is the friend of the investor”! The fundamentals are better than they were last week following yesterday’s RNS which will improve the business case further. This is an ideal time to top up when others are fearful and those who might consider buying in now will, in my opinion, be handsomely rewarded.

My thoughts entirely TB - the familiarity of ceramic production will provide a lot of comfort locally. Also provides much needed comfort to shareholders for all the economic reasons mentioned. Lots more news to come on offtake agreements for these products as well as lithium sample trials and offtakes. Regarding £/$ situation I seem to recall that DA converted our last funding to $ so this was a clear winner!

SP is unchanged at 4p and there was the opportunity to cash out for those that wanted at its peak of ~13p!

Its important to realise that the short term demand which may be currently in oversupply goes nowhere near meeting the targets for 2020 onwards which will be in critical deficit unless new production capacity comes on board! https://www.benchmarkminerals.com/lithiums-price-paradox/

I’m not sure the Omanis have any interest in any transfer price to another miner? There seems to be a misunderstanding that we are somehow turning £50k into say, £5M. SAV has spent a lot of money on Oman firstly in acquiring the project from Gentor then drilling extensively. The most recent costs on Block 5 alone involved €100k in cash and €200k in shares to settle the deferred consideration!

Er....... not much! Alara might pay $1 to take it off our hands? What say you Pinky?

Pinky, when you say “we” do you mean Alara Resources?

...but seriously, my guess is about $5 million?

Many pots of jam Johnners, many pots! Invested yet?

Thanks for the link! I have never seen DA look more unconvincing describing his preference for some sort of new group to develop the Oman projects jointly (and become a “mid-tier copper producer”). Completely playing to the gallery to cover the earlier stated ambition. Just look at his facial expression. He is so selling this and probably has the deal done already. The good news is that the reduced risk plus cash in the bank will help the SP tremendously. If ever there was a good entry point I would say it was now. Just my opinion of course but I believe today is an inflexion point.

My thoughts too Muldoon. We may not develop Oman ourselves but a project with a license is worth a lot more than one without! I feel more comfortable that the SP will stabilise and grow from here as more news comes through in the next few months.

I am also tempted to think that yesterday’s discussion appeared to provoke a reply and may not have just been coincidence?

That’s well out of date! The latest Alara quarterly report came out a few days ago. “Al Hadeetha Project Development
Following release of the new mining law last quarter, the Sultanate continues to make advancements in developing its mining sector. The Al Hadeetha Copper Project was the first of several copper projects that have now obtained mining licences in Oman.
The Project consists of one mining license (Washihi – Mazzaza) and three exploration licenses (Washihi – Mazzaza, Mullaq and Al Ajal).
Washihi – Mazzaza Copper Project
Preparatory work for project construction continued during the quarter. Key activities during the period included:
Project Engineering: McNally Bharat Engineering Company Limited (MBE) kicked off basic and detailed engineering for a 1 MTPA copper concentration plant2 and associated infrastructure by preparing and submitting the engineering designs to Progesys.”

I feel that everything is being thrown at Portugal now as the potential returns are so much better? Becoming a mid-tier copper producer in Oman would require a JV with Alara Resources and any other licence holders to get any kind of sale. With first licence award going to Alara, they are in the driving seat and I imagine they will buy SAV’s exploration areas when they are ready. I doubt if the price will cover our costs but it will be closure. Just my views, no substance of fact!

I got the impression that we were no longer seeking a licence and that Oman was effectively dead if not officially confirmed? Most analysts and pundits seem to have written any value off the current SP. The project NPV was not very attractive in any case. I may be wrong but see no evidence to the contrary? Maybe a representative of the company would care to comment?

Ouch, I guess that was a dig at me Johnners? Sounds like your holiday didn’t improve your mood? Have always found this board to be a refuge from the unpleasantness found elsewhere on LSE so hope it’s not going to change. Sorry if my transparency causes offence. Perhaps my “foolishness” with building up to 4m shares will give you the courage to invest your £10k on the basis that you won’t be the greatest fool? Seems like whenever the price reaches your buy-in target, you revise it downwards? Come on, join us band of hopeless dreamers and spend your jam money!

Thanks for the insights IB. I worry that the grass may have grown over me by the time that move is executed!

I don’t believe it is. The message it sends is that the Board has decided that the chances of getting a licence from Mozgov have fallen so low that further expenditure in Moz is unwarranted?

Hi IB, I assume that our chances of achieving the long-awaited target of 51% interest in the Moz JV with Rio is also kicked into touch as it depended on completing the PFS?