Member Info for Cornishknocker

The mine is already in production

I think the thing is this WAS a distressed asset until last week, without the refinancing, it could easily have gone the way of Wolf and Sirius,which were basically companies with good assets - sirius was just too small and wolf messed up their plant design. Without CoVid, this would have been in much better shape this year. It has a good mine, a good processing plant, it just needs to improve throughput and get the gold plant producing to potential.

It looks like all three of us are coming to the same figures which us always good.

I don't think it is a particularly hard job, those figures are based on last years production and grade figures at todays prices. If they can successfully increase production to 1500tpd@2%, it should be even higher.

At current prices, the mine is set for a $20-30 million operating profit next year, so a market cap of £300 million is reasonable, soa share price of approximately 3p.

If you think about it, at present we use 3 main sources of energy in the UK- electricity, gas and oil (petrol and diesel). Tge government's plan is tgat we will eventually be using just one - electricity or 2 - hydrogen - hydrogen is generated by electrolysis of water - which also requires lots of electricity. So if you think about it we need to upgrade the electricity network to replace the gas and oil - that is going to need an enormous amount of copper. The standard for new build housing is to be installed with a 3 phase service.

No its a grid upgrade, 18km of 132kv

As we rebuild the electricity networks to deal with electric vehicles, the copper demand is going to go through the roof. I am planning one project for next year that requires 1500t in its own right - about 1% of current lme stock.

I totally agree Oiltap, the first thing is there is nothing wrong with the plant efficiency, recoveries are good, (and at todays metal prices the mine will be making a very healthy profit as it stands) the issue with the plant lies around Crushing/grinding capacity. There are several ways to improve this: -

1. In the short term focus on higher grade ore - the development work to open up higher grade blocks has been done. This effectively gets you more copper out of every tonne you crush.
2. Increase crushing/grinding capacity - the full crushing/grinding circuit in a mine is quite complex and as a result will take time - by using 3. and 4. Below, the upgrades can be confined to the crushing circuits, which is cheaper to achieve and will have a dramatic effect in cutting the processing unit costs
3. Add ore sorting technology - this effectively removes wast rock at a large size - generally after primary/secondary crushing.
4. Add DMS, has a similar effect as 3.

It doesn't put much detail on what the money will be spent on, if you go back to the earlier quarterly updates, they are stating where they were developing to higher grade ore, so mine development wise they are along the road. The main thing is all this work should be finished in 6 months and even better at current metal prices, the working capital element of that wont be used

Its hard to say, without knowing exactly what stage they are at present. My calculations were based on already achieved production rates as opposed to forecast improvements, with annual sales of approx 9000t of copper in concentrate and 9000oz of gold. The main key to improvement at the moment is improving the head grade, which will be achieved by developing Higher grade ore blocks - and it looks like this has been achieved, so there should be no wait for that. In time as the Footwall vein system opens up, the primary crushing and grinding circuits are going to need uprating (as that us where the production bottleneck is at present) - if there is suitable used plant available, the upgrade could be achieved in 6 months, if new equipment is required you are probably looking at closer to 18 months. I see on their website they are looking to appoint a projects director (if it wasn't for family I would probably apply), so it looks like there is a lot of project work planned.

I'm a new investor here, to me the company have sorted out their financing issues, with their proposed plan, they should make a revenue of around US$75 Million next year, with costs of about US$55 - $60 Million all in, which to me makes this share price a bargain, which should be valued at around 2.5p per share (P/E 15-20)

I think it will be project level not company if its what I think it is

I think tgat is more likely to be associated with the trading halt in NAE yesterday

I'm thinking an announcement on Wednesday, that Mustang are taking a 50% share in the pilbara gold prospects currently owned by New Age Exploration (NAE - ASX). The securities in NAE went into a trading halt yesterday, pending an announcement on the Pilbara projects. NAE is chaired by Alan Broome, this effectively would give a dual listing for the project

There's little been said about the exploration bonus, which could be fantastic - say this next exploration drilling round costs $1 million, and we are able to increase the resource base on both projects by 10%, then by the middle of next year we could recieve another $3 million payment.

I would certainly expect it by the end of January, but government departments generally move at their own speed

The two most recent ones are both small scale aggregate applications which they seem to deal with very quickly. The larger mining applications seem to take several months - there is a very good reason for this - tge environmental implications of a metal mine are far greater than those of a quarry. On another note, the tin price is climbing nicely, its now very close to $20k

For me its a good deal, a sell out at the moment and we would just be another explorer, but as it stands with this we have a significant income. Once Salinbas is in production, then it maybe time to sell our stake but maintain a royalty. By this stage I would like to think we will have other assets close to production outside of Turkey.

I think you'll find its Mega Tonnes. 9.0 metric tonnes wouldn't even be a full bucket on a machine.