Member Info for Croutom

IMO $5m bid for the project would be insulting, but I could see that on current basis $12m gross revenue from oxide only, tax and costs you could probably justify to some extent.

I don't think $10m would be accepted by JP

The inferred production for the whole project is just over 36,000 tonnes, a company bidding now would have to go high enough to take it off the table early but at enough of a discount for them to take on the risk, after second PEPR this will be worth much more. I think $20m would be a smart bid but at that point I think JP might just wait until second PEPRs through - what's a few more months...

Just want this to get past 1p already...

Yeah Fira I believe it's $10m borrowing on inferred and oxide only PEPR, they'll be rolling the dice on the second PEPR going through without a hitch, JP will have work cut out for him.

The way I see short term SP rise is that any JV partner in the "data room" sees potential and an easy second PEPR submission and will bid on it (buying it half finished before the second PEPR comes out to get it at a discount) - There is an aus copper producer in the mix and MOL is a pre existing mining area so I wouldn't be surprised.

I certainly think that selling at 0.25p is a mistake - if we sold LCCM for $20m SP will go above 1p, if we got the full PEPR or produced some copper cement it'll be worth way more SP is only reflective of Cobre

Morning prop - what I'm saying is that current PEPR only gives us about 1500 tonnes of Cu from the oxide we're permitted to mine (around $12.5m gross revenue) i would be surprised if they got a full $10m funding on this basis. I think we'd have to have the full (Inc transitional) PEPR in place to get $10m. Why would the JV partner take the risk if they can wait till the full PEPR's approved?

However as said earlier the things that are swinging for the "we might get funding news shortly" camp

- I do think a lower figure would be feasible ($5m) or we might be able to borrow for the full $10m if we get that bank interested with all SML assets as collateral. I think we need to get digging as soon as possible and that first heap on the leach pads so we can say "yep there's some copper here", So need to establish whats the absolute minimum funding we could take (although risky)- SP, funding opportunities everything will be available if we get some of the red stuff off the conveyor belt. Even if it's just JP in a digger driving dirt to MOL (Semi likely, although I think that JPs hell bent on getting full $10m funding)

- I think a bid for acquisition of the project would be very possible (a few companies are trying to pinch projects atm) I think as the BOD are getting on a bit wouldn't be snuffed at (I'd expect/hope any bid less than $20m would be rejected) (likely)

- A JV partner might give funding in tranches or the desired amount if they're 100% confident that they can get the full PEPR, but i think so much research needs to be done into this that the JV partner will likely just wait for the full PEPR to come in (unlikely - but would be nice)

Fira that is just the current price of Cu x tonnage so the figure of $12.5m will be much less net tax etc so yeah $10m pretty unlikely in my view on half baked PEPR (but I would be pleasantly surprised if we did get the full funding). $5m is possible, as this is close to the net profit we'd make on phase 1 (failing that we can top up from cobre) Or we can look at selling LCCM as is to someone that can find the whole production - again, best to wait till full PEPR for this if it is as easy as JP says.

Don't get me wrong - I still think it's undervalued and current MCAP is definitely just based on cobre revenue (as it dropped to the 0.2's on lower cobre revenues. I don't think Redmoor or LC are factored into the SP at all, and I think it's just a matter of time just waiting until one of those are realised/start paying out in one way or another (sale or production) - but I think there's definitely better ways about going around funding, they won't get $10m under current circumstances/PEPR

Yeah I agree Fira, it's just weird to go in at $10m and say we can't start with any less - appreciate a bond/wages etc need to be paid to the DEM/workers but surely just see how we get on with $5m (raising this will be way easier) with worker overheads being paid for by Cobre until we get the first paycheck from LCCM.

I've just re checked the PEPR and it looks like phase 1 has 501 tonnes of total Cu (oxide only), I'm not sure whether the current authorized PEPR also covers phase 2 - I think I might as phase 2 suggests that there's 1054 tonnes of total Cu (oxide only) and 2 tonnes only of transitional. Still means that there's only around $12.5m sheer revenue to be made on current PEPR, again this goes back to SammyBows point of who would fund $10m for a project where we're only authorised to make £12.5m revenue (inferred)... I don't see an offer being made until we get the full PEPR, unless we score a high interest Venture Capital bank loan from the large bank (I'm not sure if these even exist)

Only way I see quick money from this (which is very possible) is a small scale acquisition from another mining firm - in which case I would still wait till we've got auth on the full PEPR and sell the asset/project for $30m+ (I think it would be a shame to get any less for it)

Or just sell Redmoor & wait for money from Brenda for the raise...

How much profit we're scheduled to make on phase 1 Oxide PEPR (based on indicated Cu)? I think sammybow posted that we're on to make $10m from it which seems odd to press a JV partner into forking out $10m for a project we've only got authority on to make $10m as they will only see a fraction of the returns.

If that's the case they'll be rolling the dice on us getting the full PEPR for the project and seems unlikely we'll get finding on this basis... I could be wrong if we're scheduled to make $50m+ on oxide only PEPR then we'll be all good.

Copper back up @ $3.65/lb $8k a tonne

Fira if the bid's high enough i reckon he would, but i don't think he'd settle for less than $20m, but if there is a bid i imagine any copper producer would want to survey/sample the site themselves first

Exactly bubble - an acquisition of the site / bid for does seem possible here especially if JP is making calls, SP will jump

Agree Fira, your Glencore shares will be on the up i imagine

On a sharp incline - Would be great to end the day above $3.6/lb level, hopefully the bull run continues into next week if China/US have a snickers and calm down a bit

Does anyone know how much we'd get for Redmoor? Surely enough to get started at LCCM, imagine there's a lot of interest in the area now the critical minerals lists have come out and there's a fair few operators in the area & our lease has been renewed

i thought SML was broken tbf

Better than a day of sells DVH!JV partners are watching that copper ticker, just ensuring the dust has settled on the decline before an offer is made:

https://tradingeconomics.com/commodity/copper

"Meanwhile, major copper producers have recently reported declining output and flagged supply risks, providing a floor to copper prices. Hopes for a rebound in demand and more stimulus from top importer China also somewhat aided sentiment."

Contains

Also agree with BB - don't look at the ticker, just know that you own an allocation of land at LCCM which contains the most important metal in the EV transition, finance will follow shortly, just a case of holding out

Fortunately Cu prices are remaining pretty constant as expected, every bank (even in current bearish outlook) is bullish on copper prices in 2024 most are for 2023.

Cu's showing a lot of resilience around the $3.5/pound mark, with a lot of other commodities falling further.

If it's clear that the price is having a turnaround (if we've reached the bottom at $3.2 back a few weeks ago) countries will buy more on the prediction that now will be a cheap time to hoard - let's not forget that SML's feasibility was calculated on copper price of US$2.65/lb

If now's seen as cheap (IE we're entering a Cu upswing) a JV will put in a cheeky bid/offer to get it at low sentiment. August is prime time for an offer IMO

No indication as to when we can start mining but I suppose one domino at a time ey.

Copper up again today, hopefully the resilience of the metal will entice an offer soon