Member Info for Cornishknocker

On the face of it, the company has secured access to considerable funding (the key word is access I.e. its there if needed)

1. There is $20 million of new senior secured debt from Newgen, although $6 million is to pay back the west face loan, so its $14 million of new debt.

2. There is $30 million available from Riverfort, with $6 million to be drawn down this year, with the remaining $24 million available for drawdown with shareholder approval - although it is planned not to use this I.e. it is a contingency.

So if all goes to plan we are looking at a total of $20 million of extra debt.

Risks

1. Commodity prices and exchange rates. These are generally interlinked on the demand side - if as a result of inflation the us raises exchange rates, it will lower the copper price, however it will also raise the value of the US dollar, offsetting the commodity price fall. On the supply side, if additional production comes on stream then tgat will reduce the planned income.

2. Mining risks - as we've seen first hand, mining is not always straightforward, events occur beyond control, such as a fall of ground - the key is to have a resilient mining plan - the plan presented gives us that - that doesn't rule out events - a collapse on the main haulage would be catastrophic for example - it shouldn't happen as it should be regularly inspected and supported to a good standard.

3. Meteorological events - as we know Canadian winters are harsh, due to the remote nature of tge baie verte area I would assume the power grid is not the most resilient in the world and an extreme event such as an ice storm could not tge power out for several days.

I see springdale forest resources are advertising for another 4 diamond drillers for Rambler. That is 8 Diamond drillers and 4 assistant drillers advertised for since February. All are advertised as permanent positions.

Hadn't you best get on with your research, you haven't time to get involved in in depth discussion apparently.

In other words you haven't got a flaming clue, for the troll that spends inordinate amounts of time typing endless rubbish on here to suddenly say he doesn't have the time for in depth discussion is frankly laughable.

If ever I put any calculations up, I always put "based on those figures" and any assumptions I have made.

All any of us have to work on is published information and yes anybody that knows how to read that information can convert that into numbers.

Back in January/February there was a question here about risks, one of the risk I highlighted at the time was an underground collapse - its a mining risk that will always be there, the challenge is for management to mitigate that risk, which they are doing by opening multiple stoping blocks.

If you look at Rio Tintos Bingham Canyon mine last month, they had a huge landslide in the pit that will take months to clear - if you want to invest in mines, there's no point getting upset when these things happen.

On the flip side, I believe the company need to be more up front, in my opinion when they announced that the production guidance was to be downgraded they should have said why at that point, not in response to a question at AGM, which gave the impression they were trying to hide it.

If you want to take a swipe at me, be my guest, I'm big enough and ugly enough to take it.

Sorry DJG, I've obviously missed something judging by your facts. Could you put so.e meat on tge bones with regards to maintenance please?

I'm thinking we are in for an RNS tomorrow with an updated mine plan, which should enable us to reforecast where we are heading.

During this quarter there will have been a huge amount of development work completed at the mine (probably in the region of 1200 - 1500m), which will be setting up to ramp up production to capacity.

I'm fully anticipating a concentrate shipment in the next 4 weeks, which will see production guidance in the 5,000 to 5,500 tonne range.

There are also an awful lot of diamond drill results due, which is likely to be being held back for the new mine plan.

I would have thought the management would have used this period of reduced production as an opportunity for a significant mill shutdown to enable repairs, replacement and overhauls of the processing plant.

I see the mine as entering q3 in a very good state, with extensive development opening up reserves for production, diamond drilling adding to the inventory and equipment and plant in good shape.

I believe we will also see movement in LD in the next quarter, probably with news of a jv.

Silver credits are also recieved as well as gold credits, but the mine does not produce gold or silver metal. The concentrate that is shipped contains gold silver and copper, with the 3 metals being formed during the refining and smelting process upstream, when payment is recieved, it will show the value of copper produced, less treatment and refining charges , less penalties for deleterious elements (such as arsenic) plus payments for bonus elements such as gold and silver

Certainly can't beat their doughnuts!

https://youtu.be/4FkGUOKLTac This us a really interesting presentation for those who aren't overly familiar.... https://youtu.be/4FkGUOKLTac

It is highly unusual for a mine to only have one operational stope and would be seriously frowned upon as it makes grade control impossible - you need multiple production zones to ensure steady state production.

There's a lot of people flapping here, everyone just needs to relax a little.

We have a company engaged in turning around a dilapidated mine and they hit a setback in March with a stope collapse, its a pain in the ass, but its an inherent risk in deep mining - with a fully operational and developed mine it would have had little impact, but when the mine is underdeveloped it has a much larger impact - if you don't like that risk don't invest in mines (someone asked months ago what risks there were and underground collapse was covered). As a result, I estimate it will put around a 10 week delay into the turnaround implementation plan.

The mine now has at least one stope in operation, possibly 2, building to 4. But ultimately its going to reduce this years revenue to between $40 and 45 million - which is still healthy, but there is unlikely to be any operating profit, due to the amount of development work going on.

On the funding front, there is a hole to plug, but with tge timescale I am more convinced then every this will be achieved with an asset deal, which is why the company cannot update the market at present.

With regards to large shareholders selling, why would the chairman decide to sell out his holding now, when he could have sold a large number at 60p (0.6p) a few weeks ago?

It's going to be a bumpy ride for the next quarter getting underground back on track, but by September all should be looking good.

Yes they started drilling in April this year at site 2, for a period of time the rig was no longer visible, so I would assume it was at site 3, as that site is extremely well shielded, this week the rig has started on site 4.

It's looks like a significant step up in drilling is occurring as I said the other day a second diamond drill rig as arrived, now a third rig has a arrived ( a large combined DD/RC rig) The active rig is currently drilling on Site 4 (Tregarlands farm).

I don't think it was ramped, the company had a plan, unfortunately an incident occurred underground that prevented the planned timescales being met - thats mining

Intriguingly one of priority diamond drill rigs is currently in the car park at crofty - I am assuming it's well the prepare the next drill site...

Indeed Valuation, they initially have an agreement to tip the dewatering sludge in Wheal Jane's tailings dam, as work moves on at crofty vast amounts of void will open up which will be backfilled with paste fill from tailings. After 350 years of mining there is a lot of empty space available (also why its such a mammoth task to get the water out of!)

https://www.cornishmineimages.co.uk/south-crofty-mine-old-workings-3/

There are 2 elements to that post, United downs and South Crofty.

Taking South Crofty first, South Crofty have designed a water treatment process that will actually improve tge water quality in the nearby river when they start pumping. The actual mining and processing on site has little environmental impact, as a result all permits are in place. The mine will produce a concentrate that will ship for smelting - there are no tin smelters at present in Europe or North America.

Going onto united downs where drilling is currently taking place, should that show a viable mine, again a process for treating the water will have to be developed as part of the environmental Permitting.

G7 starts tge following day