Member Info for daramuda

I have already asked myself that question and plenty of others. I am still invested in Finn Aust. I have had a successful investing year so far. Have you?

I used to subscribe to brokerman daniel but after a short while I gave up on the inaccurate reports. Study his report on Finn Aust and go to the end where he deals with comparables. He mentions Sierra Rutile. I held 350,000 shares in Sierra Rutile. Many of us felt that the £215 million bid by Iluka was at a considerable undervalue. Study their half year results released 30th September. Debt of $49 million and bear in mind Iluka are taking that on plus the earnings and assets. Half year loss of $23.5 million - I repeat 23.5 million and Iluka are prepared to pay £215 million or in dollars 60 million. Then have a look at the spin that brokerman daniel puts on the comparison with the value attributable to Finn Aust and ask yourselves what agenda is he running and why has richie posted it with a strong sell message. Everyone to their own. Governments run on propaganda.

The company has a way to go but it seems to me that it has readily available deposits which are capable of being "mined" without a mine in the ordinary sense of the word and processed without a processing plant in the usual sense of a plant. What they need is to ensure that there is sufficient capital to afford to buy or hire the dredgers to dredge the sands and also off take agreements to buy the product. There also remains the question of what the company does with the remaining percentage of the company which is owned by Bluejay.

Thank you. I read it and printed it that day. The three things to come are the SIA EIA and the JORC compliant resource (the latter I believe should be very good) Pituffik is an absolutely excellent resource of high grade ilmenite sands. No expensive mine to be financed and built. But this will take time. Thanks again for your help.

I know what you are trying to say. I am a subscriber to share prophets. What is the date of the article since the code that you have suggested does is not recognised?

The JORC compliant resource is not until the end of the year so we have to wait; also should there be a move to complete the option for the remaining 40% (without triggering a Rule 9 offer) there is bound to be dilution since the deal will be done at 2 pence per share (the December 2015 deal). So patience needed.

I will add to the post by Obelix. Read today's FAM RNS carefully in that the processing of the sands is to a large extent done by nature. Thus with sands capable of replenishment (see the company's excellent website) there is little capital expenditure in the conventional sense.

and an exploitation licence sought from the authorities as early in H 1 2017 as is possible. I wonder what the Germans may have to say about that; EU free trade and all that!!!

Since 2011 all the H1 results for SRX have been unaudited and none have been left to the last minute allowable under the AIM rules. I have never come across cynical SRX write downs in the last five years and if there have been write offs none which can be reversed. So they have disclosed the selling off on the cheap of over $6 million product which had been dampened which could have been dried out; they have also written off as impaired over $5 in respect of the agriculture business which might be written back in in the future. And there are also sales which may (repeat may) have been included in H1 which will appear in H2, Anyway hey ho I sold a while ago and have moved a large amount of the proceeds into Finn Aust (FAM). It reminds me a bit (before I invested in SRX) when the SRX share price was in single figures. I hold just under one million shares. The company is not in production yet but they should have JORC compliant resource out by the year end or early 2017. What I do hope that they will have out much much sooner is the detail of a metallurgy report giving official grades but there is enough on their decent website titanium.gl to tell you that the sands are very firm and containing ilmenite with high quality titanium. As to resource and mining the first is technically available in perpetuity (created by Mother Nature off the glaciers as they melt) and no expensive mine is required (no Lantis no Gangamas no feasibility study for Sembehun and no building of a Sembehun) and therefore no debt or need for it for the building of mines. Why? because the sands are on the beach or in the shallows in North West Greenland. Instead of mining per se with a large workforce the plan is to use dredgers to "hoover" the sands and ship them off for sale. And what is more there is little processing required because Mother Nature will also have done part of the job. There is also a deep water port available for boats/ships to moor up waiting to dredge. But is there not a problem with regard to the climate in Greenland? The downside to having to rely on glaciers to in effect produce the sands is that the country is cold for much of the year. But we are told that it is possible for work to be done for seven months of the year; one month to prepare the ground one month to clear up and off leaving 5 months for dredging but that is not just 5 months since this is a part of the world with 24 hour light; therefore work time with shifts is the equivalent of ten months of the year. It is understood that ships used could carry 300k tons of high grade sands at a time off to buyers.So one is not talking about 120k to 130k tons of rutile a year but multi thousands tons of sands per year. Iluka bid £215 million plus debt for SRX; at one point the company had a MC of over £400 million when the share price touched 80 pence. Against that FAM has a MC of just over £30 million.An SIA and EIA are in hand and an

I have quite a large holding. The stockmarket has not understood this company and what Pitiffuk really has in its portfolio. I am a former sierra Rutile holder and Iluka have recently bid for that company valuing it at £215 million plus debt which Iluka are taking on. We as private investors thought that was an undervalue. The stockmarket are valuing Pitiffuk and the company's recently acquired assets at under £40 million. I take the view that sands themselves being capable of replenishment could amount to as much as Sierra Rutile have in the ground. A big could at this stage since we do not have the JORC compliant resource yet. But what is staggering is the grades the company is talking about.. A report on the grades from the professionals could be interesting. Unlike Sierra Rutile it appears that FAM do not have to build a mine to extract the sands; thus no debt to build a mine.

and out of interest how many FAM have you got?

it is worth studying the company's website and the presentation of 19th September and today's presentation which is a slightly more sophisticated look at the RNS.

I think that it will take time to mature but it is on the main market (happily exchange paying some stamp duty) for unstable AIM stocks not properly regulated by the aim authorities.

It is important imo to study the anticipated grades; some areas east of Interlak +90% ilmenite. If we have a good JORC compliant resource, a satisfactory EIA and then subject to those an exploitation licence (in H1 2017) this could be a very important development. And just think, although not mentioned in today's RNS, no mining costs per se. I already have a large investment in FAM but will try and add as and when going forward.

I have bought in this morning; it seems a good company with a capable board with good prospects. Thank you for the list of questions JA$.

Difficult to tell because DJI is a sets stock but shares tend to go up when there are more buyers than sellers and vice versa go down if there re more sellers than buyers.

I myself added on reading the results. In simplistic terms it seems to me that Pituffik offers sands which, subject to metallurgy testing, could contain a very high grade of titanium. Not only that, the deposits cover a large area of beach and into the shallows and if dredged they will be replenished as the glaciers melt in the spring. It further appears that the company does not intend to spend money building a mine in the conventional sense; instead the plan appears to be to dredge the sand and take it by boat for processing once the company obtains permission to exploit from the government. The subject area is near a deep water port. What I am "dreaming" is that after a permit is granted and the ice thaws, the company will hire boats/ships which will be used to hoover (so to speak) the sand from the shallows/beaches. No mining costs as such. So what remains to be done. Whether we will get a separate metallurgic report dealing with purity I do not know but the ceo has already flagged a JORC compliant resource report by the year end. We will then know how the experts measure the longevity of the resource for JORC purposes and persons better versed than me can put a value on the resource. The rest imo will roll from there including the application to the government for an exploitation permit after the company has obtained the Environmental report; that is in hand. I do not see much opposition from the local population which is some way away and I cannot see any harm coming to the walrus population nor the narwhals. The company's website is good and there is a great deal of historical information in the public domain. For my part I had 350,000 Sierra Rutile which is the subject of an agreed offer. I have sold all bar 50,000 since I have invested elsewhere but I have invested over £45,000 in FAM and consider the price has further to go. The offer for SRX valued the company at £215 million. It does have a large resource of sands bearing rutile but there are large costs in building mines and also a large workforce to employ. Further Sierra Leone has suffered from civil unrest in the past and more recently was in the thick of the Ebola outbreak although the workforce of SRX was unaffected due to steps taken by the company. It would be nice to see Pituffik valued at £215 million but we are early days. e,g, we do not know the JORC compliant resource yet nor has the company an environment certificate or exploitation permit as yet. However there is every chance the value could well exceed the current attributable value and do not forget the company has just acquired two excellent assets upon which tens of millions have already been spent by Cairn Energy. Get Pituffik producing, cash coming in and those assets could be exploited. A lot to look forward to imo but as ever DYOR

FAM had full year's results out today which should give you an insight and their website which you should find on titanium.gl provides decent information. The company recently acquired a couple of projects in Greenland from Cairn Energy which are copper etc but these are on the back burner because the company is concentrating on the Puff ilmenite project. The key imo is the purity of the sands and the quantum which will be replenished when the sands are dredged, hoovered and placed in boat to take away for processing. When you mentioned Oz you may have been thinking of Western Australia which owned Bluejay and it was Bluejay which Finn Aust acquired from Western Australia. Hope you are coping. Sorry folks for the off topic. Will SRX produce their results by 30th September; even if they do they will be unaudited.

For what it is a worth and since I have sold all my SRX save for 50,000 in my SIPP, I thought that I would let you know that I have built up a little stake of 800,000 shares in Finn Aust (FAM) just in case it is of interest to you. What I like about is that the company has a decent project in the north west of Greenland with a CEO who became ceo following the acquisition by the company of Bluejay where he was ceo as well as ceo of Western Australia who owned a big slice of the Bluejay. Western Australia are thus a corner stone investor with just under 40% and are available to give advice if ever needed. The company as an exploration licence in respect of stretches of sand in NW Greenland and have been actively exploring what the project contains. The sands contain a very pure Ilmenite which may not be of the same value as rutile on a pound for pound basis but is possibly either one of the largest deposits in the world but also with some of the highest purity. If the company obtains a licence to exploit the sands (an application is expected to be made in earlyish 2017) the idea is as far as I can tell not that they build a mine per se but use a boat or boats to hoover the sands i.e. dredge and hoover. A comparison can be found with Tormin off south Africa. The sands when exploited will be replaced naturally by the melting of glaciers as winter ends and spring and summer befalls Greenland. The company has this summer employed a bona fide and well respected appraisal company who have been on site and have done the necessary work to prepare for a JORC compliant resource which should be available by the year end. The key is the metallurgy. I have compared SRX with FAM and the following differences have occurred to me. First there is little chance of civil unrest. Greenland is sound geopolitically. There are few people living and earning a living in that part of Greenland. there should be no opposition from the walrus and nharwal population. The country is not threatened with Ebola. There is no need to build a fixed mine; cf the cost of Gangama by example was $80 million and so no expensive loans. Western Australia should be a better cornerstone investor in comparison with Pala. The company is not the subject of the BVI jurisdiction. It is dual listed AIM and Frankfurt. The company is not dominated by its cornerstone investor which is contrary with the way Sierra Rutile worked out with Pala calling the shots imo. Whilst SRX has a very large deposit the FAM sands are capable of and are replenished if sections are removed. The above views are mine and are given believing the detail to be true but as ever DYOR.

Now this could prove interesting. Today's announcement means that the parties have 30 days to further discuss the merger. The AIM rules provide that the H1 results should be disclosed within 3 months of the half end i.e.by 30th September slap bang in the middle of the 30 day period. Others may know more than me but I am not aware that an uncompleted merger can interfere with the release of those results by the board. I consider that most LTH believe that with Gangama in production H1 2016 will see a marked improvement on H1 2015. Whilst the results are unaudited, the auditors still have to do a professional job.