Member Info for Croutom

It's a exploration licence up until 2037 and then that can be converted into a 25 year mining lease. I think the licence can be sold to another company but I believe that's all we have with regard to redmoor - to me Redmoor isn't really going to be a SP increaser until some decent cash flow/cash reserves are generated from LCCM and UK legislation becomes a bit clearer RE mining

SML is currently trading at a P/E ratio of 70.25

3 year average for the metals industry is 31.2 so 31.2/70.25 = 0.44 x 0.28 (current SP) = 0.12p is what the SP should be on average based on current income (cobre) only - does not take account for redmoor or LCCM assets.

Revenue estimation is 300 tonnes per month x $9,000 USD = $2,700,000 per month x 12 = $32,400,000 per year. Lets say we actually make 10% of that as profit after funding/labour/BOD costs, missed targets etc = $3,240,000 per annum.

$63,500 is last year's Cobre profit so $63.5K + $3,240,000 = $3,303,500 annual

This is 3,303,500/63,500 = 52.02 x higher than current profits.

52.02 x 0.12p = 6.24p est SP once LCCM is rolling & producing.

This is quite a conservative estimation too (based on 10% of expected revenue being profit).

I am hoping that SML have learned from the mistakes of previous tenants of LCCM and hope the facility is up to scratch after phoenix's $20m investment into the facility before they left it (+SML's adjustments). Hopefully if they adhere to the DEM's recommendations and have the support of a major copper supplier they can make it profitable.

I have a good feeling about the next month or so - GLA

Probably Fira...

Someone with 40m shares prepping for a big move me thinks

I don't think they've got a full excavation team hired (mud range manager & junior - IE they only have John speck on payroll, imagine there's some legalaties to restrict only one person moving dirt (health and safety etc) - hopefully agency/contract staff will probably be used to move dirt to begin with at least to speed things up.

As far as I'm aware processing facility is ready - just labour required to remove topsoil and then transfer the dirt to the pads where they'll be treated. Hopefully there's some elaboration in the next RNS'

Ah a CGT fix then got you - thanks DVH!

Is that a buy or sell? - weird because I imagine the SP would of moved significantly either way if it was.

Appreciate a few of you have better trade viewing data than I have!

Means that good news on funding / PEPR should swing us up higher at these levels

At least copper prices are keeping things interesting

last two cases were;
Submitted on 7th November > approved 24th of November Submitted on 17th of November > approved on 25th of November

I'm not too sure on whether they were within the time limit but I assume so as there's not a huge amount of space between the submission and approval date

The date the DEM have given themselves to complete the second PEPR is 12/01 on the SARIG website. Understandably they missed the last deadline by like 4 months but on the DEMs website the last PEPRs done in Nov have had a turnaround of a few weeks now

From the previous PEPR submission RNS - parties reflect a European based, mining focused fund, a large, respected, global copper supplier with activities in South Australia and the equity investment and debt funding arms of a major Australian, internationally recognised bank.

If they've walked around LCCM - my money would be on door number 2

Yep - agree deadlines have been missed, the payout of this share has been sluggish- although slugs do actually move.

My hope is that as the oxide PEPR has gone ahead the fundamental parts of mining at Leigh creek (logistical movement of ore, social/environmental impacts of excavating etc) have received the go ahead and this resub is just the treatment of the transitional ore, the findings of the consultancy work will just be reviewed, I'm hoping (again) as this is only one section (and the length of time it took to submit it) the consultants have done a thorough job and nothing more is required.

But again - we've all been hoping, waiting, next week, next month, next year etc! Fingers crossed for a good first quarter for us all. Happy with this first day at least.

Trout - delays with first PEPR were not company specific, DEM had a reshuffle of staff, new COVID legislation to implement as well as a number of key events relating to south Australian mining - I monitored the approval of PEPRs over last year and they approved 5 in the first half of the year followed by 17 in the last half (see the DEMs website "approved PEPRs"). - I really anticipate we'll have this one back in Feb latest.

I agree though, we won't see any funding confirmation until this is back - there's just no point going any further until it's signed off. I am hoping that the oxide part was approved, plus the low acid forming capability as well as relatively small scale of the project (in an existing mining area) allows it to be signed off without a hitch - once this is done I am certain an offer will be put on the table, so IMO we'll have an upturn & be above 0.4p by end of Feb.

Very true! Again this is why nothing JP says actually moves the SP

I agree slurm - The SP on this only moves on affirmation from external parties - RAB capitals purchase being the last 'big' move back to 0.4p. Funding confirmation (and confirmation of who the funder is) will be the next big move.

If we are as close as JP suggests with funding talks, the transitional PEPR approval (as well as uptick in copper prices) should be enough to sway the interested party IMO.

As oxide and transitional ore are the two main ore types confirmation from the DEM that we can leach both types at the MOL processing facility gives the whole project improved feasibility

Last approved PEPR was submitted on the 17th of November and approved on the 24th of November, here's hoping that it takes a similar turnaround time to get approval. Mind you DEM are probably all off for Xmas so I reckon we'll get the go ahead (earliest) start of Feb

I've just checked and it looks like the feasibility study was done on $6,614/tonne so at $8,500/tonne and full pepr on paltridge north might eventually get funding.

1p by the end of Feb IMO

Does look like the DEM has ramped up the speed of PEPR checks/approval, last two cases were submitted on 7th November > approved 24th of November & 17th of November > approved on 25th of November. I remember that during the time when the oxide PEPR was submitted they had a reshuffle of staff at the DEM and a few events that were priorities. Next event looks like it's on 09/05/2023.

Hopefully a shorter turnaround than last time when the final part is submitted!

If they do raise I don't think they have any excuse to do it until this last PEPR is signed off, but I do think that if they've got full mining access a funding agreement will follow IMO.

I do think what if this is all a con - but then at the same time if it was and JP has 80m shares surely the best way for him to get some quick cash is to just work slightly harder and get the SP up to 2p ish and then cash in @ £1.6m?