Member Info for Cornishknocker

When did you try phoning? Yesterday was a bank holiday in Canada and yes I suspect E Mail would be better as no one able to answer investor questions is based at the mine.

Its speculation at the moment, I think its a very good chance - please note that this will be on the Little Deer/Whalesback mines, not Ming Mine.

Ok Duck Pond Mill is nothing to do with Rambler, other than Rambler purchasing the plant. It was a mine operated by Teck Resources that had a short mine life of around 7 years (That was its full design life, it was worked out), it was extremely cheap- its hard to sell a second hand mill as you need a buyer with similar mineralogy in relative close proximity, resulting in the buyer being able to buy for a small premium on scrap prices. It was planned to be relocated to Ming mine, but there now be other plans for it.

Did I say the RNS was simple? No - particularly the financing element. But the production figures have been laid out very simply, no need for logarithmic tables, trigonometry or anything else other than simple division and multiplication.

And Jakeman, with a degree in mechanical engineering I would assume you would certainly know the difference between something being constructed and something being commissioned.

Just for everyone here, here is the development cycle of an ore sorting plant: -

1. Initial testing - at the laboratory scale is the ore amenable to the separation method. (Complete and yes it is)
2. Feasibility study - Does the financial reward warrant the cost. (Complete and yes it does)
3.Design testing - Optimisation at pilot scale to enable optimal plant design, based on the ore being mined. (this work is currently going ahead in Germany)
4. Detailed plant design - This is the physical design of the plant, including structures and major items of plant and all linking cabling, conveyors, pipework and walkways.) - Currently in progress
5. Tender Process - Preparation of contract paperwork, schedules, selection of tender parties and the tender process itself to contract award.
6. Procurement and construction - Ordering of long lead time items and construction of plant. Due to the the climnate, with average temperatures below freezing from Late November until Late March, it is unlikely that construction could start until around the 3rd week of March.
7. Commissioning and handover - Bringing plant up to design performance, optimisation and tuning of all equipment and handover to the mine for operation - Programmed for September 2022 - from production figures contained in the RNS.

I hope that helps people understand the process.

No, it's very simple, to hit the H2 2022 production target the ore sorting plant has to be in commission (ie operating) in H2 2022. If you go through the published figures, H2 2022 has production at 1850tpd. Without the ore sorting plant the maximum capacity is 1350tpd, with its 2000tpd, so for 1850tpd average to be hit the ore sorting plant has to be up and running on September 1st.

No, commissioning means up and running in H2. If you go through the planned production numbers, H2 2022 works out to 1849tpd, which means the company is planning on the ore sorting being up and running by September the 1st.

2014 with a post tax profit if just over $9 million - tge production levels were much lower then

Unfortunately experience tells me it will come.

I obviously don't know, but I would infer from the subsequent proposal to start drilling another lode in close proximity, part way through the drilling programme that they have some encouraging intercepts, as the new drilling would be looking to increase the inventory. ( in my opinion).

With regards to South Crofty it was stated somewhere at the time of the aim float (I can't remember where but it may have been the H&P note) tgat if tge tin price went above $25,000 then focus would come back onto Crofty- it obviously been significantly over that for some time).

Having just driven past the mine to get a pasty, they are definitely working on the shaft with a containerised workshop set up next to it.

Sorry, it was the 26th February, here it is: -

I can't think of any unique risks here, its just the normal: -

1. COVID outbreak
2. Major mining incident
3. Copper price collapse
4. Strike
5. War

1. Its a low risk despite an outbreak in newfoundland tfat appears to have been contained to st John's.
2. Its a low risk in a first world mining jurisdiction with well trained engineers and staff and a good regulatory system. Also hard rock metal mines are generally low risk compared to coal equivalents.
3. I don't think anyone is predicting a collapse in copper prices.
4. Thats more if a risk in a high copper price environment as staff demand higher wages.
5. I don't think the US is going to war with Canada anytime soon.

Before anyone says about item 2, we have NOT encountered a major mining incident, a stope collapse is routine, one additional risk that needs adding to that list (which was not evident in February) is the underdeveloped state of the mine, there is obviously a plan to alleviate that risk.

I have all the time in the world for genuine questions. But please don't take my word as gospel - its what I believe to be true but I don't have all the facts to hand, please take the time to run through the RNSs and decide for yourself as well.

It's amazing tgat you're now running with tge increased labour costs. In those risks that I apparently never mention, again back in January, when we were going through them I raised then that we are likely to see increased costs as a result of pay inflation due to the booming commodities market.

The main reason for the use of contractors is tgat the development required to bring tge mine to a fully developed state, requires considerable extra development staff and equipment over the steady state requirement of the mine.
There is absolutely no point (and it would be extremely expensive) to hire and buy those resources tgat would then become redundant in 6 months time.

RW has been on site at South Crofty for several weeks now, I suspect something is in the offing...

Considerably less dilution then there was before this.

Sorry, don't dare say I don't talk about other possibilities, back in January when chatting here about risks I said about standard mining risks such as falls of ground.

As for the loan being high interest, you do realise you cant compare mining finance teems with personal loan terms don't you? It's why NPV calculations typically use a discount rate of 8%, as that is the typical finance terms.

Most of yesterday's "loans" are not actually loans but basically a company credit card.

It sounds to me they are closing in on a finance deal to dewater South Crofty. The big fly in the ointment as always been the hold that the previous owners have on it.

Under the old terms, when a production decision was made at South Crofty, 25% of the NPV of the project at that point. If the NPV is greater than the market cap, the payment would be 25% of the market cap plus the difference to be paid as 5% Net profit interest from production.

This has placed Cornish Metals in a paradox, where they need to maximise the NPV to attract the investment but minimise it to reduce the payments to Galena and Tin Shield.

With the tin price doing what it's doing, the real NPV is probably in the region of $300 million, so that would mean a payment of $75 million to Galena, made up of approx $15 million now and $60 million from net profits.

Under this restructure they recieve: -
7 Million shares now (£1 million)
$4.75 million worth of shares on financing tge dewatering
$5 million on closing construction finance.

In other words this is a huge reduction in the hold tgat Galena have over South Crofty.

The chances of not hitting a structure in Cornwall is very low, due to the nature of the lodes. The values returned are somewhat variable though, average grades are likely to be around 1.5% tin and 3% copper. The biggest issue will be lode width, last years hole was not perpendicular to the lode, so it could not give any realistic width of the lode.

The hedge stands

An interesting photo was tweeted last night from South Crofty, showing the chairing structure which is required for dewatering being installed on the shaft. This structure supports and enables the pump column to be lowered down the shaft.