Member Info for Cornishknocker

Sammy, it's biggest "Copper Cement Producer", we're a long way from challenging Olympic dam

The big news this morning is "SML is now a copper producer", to be followed shortly by being a miner

Some good coverage this morning..... https://www.bbc.co.uk/sounds/play/p073d8jv first story each hour

Have a read of last Junes RNS for the full details, but in essence: -

1. The client is contracted to take 4,000 tonnes per month, that was suspended until the 1st of March.
2. In lieu of taking the material, the client has prepaid $375,000 per quarter, in June, September and December.
3. They can use the prepayment as credit against future deliveries, (A maximum of $125,000) in any month where they take over 4000 tonnes - the price is approximately $60/tonne ($240,000 per month).
4. If they don't use the credit within 12 months of the invoice date, they forfeit the material.

In other words when they resume deliveries, our cashflow remains essentially the same. If they don't, we can sell the material to someone else.

I hope that helps - I certainly understand it better now!

Interesting, with the price rising by $1,000, that would equate to an addition $2.9 Million per year on the bottom line, once Leigh Creek is at 300T/month - pretty much covering the cost of buying the other half of Redmoor.

2020 should see the focus on: -
1. Any additional exploration/geotechnical drilling identified in the PFS.
2. Land negotiations
3. Permitting.
4. Bankable Feasibility Study.
5. Financing.

Setting up for construction in 2021. All work next year should be fundable by internal revenues.

Assuming a 50/50 JV, About 50% of the construction costs should be fundable through internal revenues, with increasing revenues from Leigh Creek.

We're still a way from building a mine, but it's getting closer, the current work to be completed: -

1. Complete the mining study (due in 4-5 weeks)
2. Complete the metallurgical testing.
3. 2019 drilling programme to lift some of the resource to indicated status and expand the inferred resource.
4. Complete resource update.
5. Complete PFS.

Items 1-4 are precursors to 5.

I suppose we could have spunked a load of money on exploration and found nothing. That way we wouldn't need cash to build a mine!

Personally I think the contract will roll over, the date from what I can se was set to the end of our annual contract. If we lost access we wouldn't be able to supply the material.

Looks like the spread is opening up.....

Shall we call you Poldark trout?

The main thing with having total control is that we are now the only decision maker in the projects future. My personal opinion is that we will probably end up with a JV with a mid tier miner in the future.

I reckon about £125 million

In 3 years, Redmoor is likely to be in production, the project is likely to have an nPV of £400 million after PFS, which could see a value assigned to it this year of £200 million, owning a 100% with no dilution, pits our share price at 16p, ignoring the other projects. Ultimately we are in a position to use the funds from Leigh creek and Cobre to leverage the finance for it.

Hi Jam, I've just found this report on the strongbow site, it explains tge market pretty well: - https://www.strongbowexploration.com/investors/presentations/

I see Alphanm8n are having problems at Bisie in the DRC.

1. The wall rock isn't as good as anticipated, so they have had to switch from the planned sub level caving to sub level cut and fill, which is a much more expensive mining method.

2. They are having problems exporting concentrate.

3. This has led to a cash flow problem, meaning they need a $12 million bridging loan.

https://www.internationaltin.org/tin-consumption-exceeds-expectations/

https://www.internationaltin.org/tin-in-lithium-ion-batteries-could-represent-significant-new-use/

To answer the question (Sorry some of this repeats what you've already discovered), tin is now the metal recognised as being the most impacted by electrification (MIT/Rio Tinto), the reasons for this are two fold: -

1. Any increase in electronics usage results in an increase in tin usage, as the solder "gluing it together" is >95% tin.
2. Tin becomes a key element in the next generation of batteries, where research as shown that by laminating it with the Anodes increases battery life and reduces charging time.

The reasons for the size of the impact are as much to do with the supply side of the equation as the demand side, to understand this you have to look back to 1985.

In 1985 the tin supply (and price) was controlled by a cartel, who had been limiting production to increase prices, the cartel was driven to the wall by mines operating outside of the cartel, releasing an excess of tin onto the market, crashing the price. Due to the Cartels actions, the USA (Who have no native supply of tin) built up a strategic stockpile, with the collapse of the cartel, they decided they no longer needed it and released it onto the market as well.

As a result of these actions, many tin mines folded very quickly, those that survived abandoned exploration, mining companies like Rio Tinto pulled out of tin, all exploration ceased around the world. It took nearly 20 years for the stockpiles released in 1985 to be diminished.

We are now in a position where nobody as really explored for tin for 30 years, operating mines are depleting and limited new supplies are coming on stream - as a result visible stocks are now all but depleted - there is less than a weeks supply visible between the LME and China. As a result of this the tin price is forecast to rise significantly, without further demand.

Tungsten is a little different, as an industrial metal as opposed to a battery metal. Tungsten actually brings a massive value to Redmoor (And don't forget the copper as well). Firstly don't associate it with Drakelands - its failure is down to technical reasons not market conditions - although new owners are due to take it over next month - re-equipping the mill will be key to its success. Secondly, the tungsten grades being found at Redmoor are quite frankly enormous as a re the structure widths.

What we are looking at Redmoor is a mine more in line with the Wheal Jane operation (Closed in 1991) - although its unlikely to have the water problems that dogged Jane.

The reason for a delay us that heap leaching us a slow process to begin with, it takes months for the acid to extract enough copper to be able to be processed through the kennecott cones, and then as time goes on the pregnant liquor copper concentration increases, making higher production rates. Next month they start putting acid on the heaps, by June the liquor can start being run through the cones marking first production, by next March the plant will be producing 200 tonnes per months.

I was just reading NAE's accounts that have been released, they have indicated a 2019 exploration target at Redmoor of 4 - 8 MT@ 1.0-1.4% Sn equivalent. If that is successful it takes us to a 20MT project, which is frankly massive