Member Info for Darola

Josef’s been promoting SDX again. Good lad! https://www.bnnbloomberg.ca/video/josef-schachter-s-top-picks~1483256

I’ve posted this before. But here goes again. The ball mill costs $13m. And replaces the previously budgeted TC, that was $8m and included in AISC. So it’s an additional $5m. I asked if the AISC would be increased to cover it and this was the response “WRT to the 2nd ball mill there are some potential tax benefits in putting it into 'growth capex' rather than sustaining capital but TBD. “

Get retweeting folks. Let’s see if we can find him. https://twitter.com/darola841662/status/1059499347249897473?s=12

15k with low margins, due to hedging. SDX will make more cash off 8k. TGL has come back a bit now off it’s high, but it showed that when the momentum is with you and FOMO kicks in, you can go past a fair valuation. As they both operate in Egypt it could be on the radar for SDX M&A. TGL is also dual listed with a small percentage of its production in Canada.

We are less than 2 months from declaring production at 8kboepd, and PW has only recently reaffirmed this exit rate - so YES we are stupid cheap. Hoping for a TGL type rise when we get going - did over 200% in a couple of months.

I’ve written to MorningStar to see if they can explain the difference between the two.

MorningStar is s good source for register information, as they tend to update monthly. According to them GLG and City Financial were big sellers in September. River and Mercantile And Hillsdale brought a few.... http://investors.morningstar.com/ownership/shareholders-major.html?t=XTSX:SDX&region=CAN

After this disaster they won’t get any options. They were performance based and they will fail on the award criteria - every cloud! $13m for the ball mill already had $8m included in AISC, so it’s actually only another $5m. There is still good money to be made here, but there are some VERY choppy waters to navigate first.

Hi MM, what’s the source for this? “a new announcement (after hours) that Dugbe's exploration licence MDA has been approved to 2040 by the Liberian government.”

Yes but we don’t know the drilling results to date, or any progress on Dugbe, or if BH gave us our cash back (although we can probably guess that one) or if they going to announce a $5m buyback! As I said I might be clutching at straws but not the first time bad news has been used to elevate good....

Could get an update in the morning, that would compound my conspiracy theory. Let them digest the bad news overnight and the good news will be even better recieved...

I also managed to sell a chunk on the RNS. But couldn’t get all out as it went to no trade, knew it would be taken badly so a knee jerk reaction. Intending to buy back at some point, as the mid to long term story here is still very bright. Even reading the RNS back, they are still generating cash - they’ve not stopped production, even in the impacted pit they are still digging ore - “The mining of ore is still ongoing from both the Komana East and West pits”. Can’t help wonder why this has come out seperatley to the imminent Q3 news - bury the bad news so the good news is better recieved? I might be clutching at straws but we’ve still got a bank account with over $40m in it, a free cash flow of atleast $10m a quarter and a MC of only $86m. Looks well oversold to me...

On the plus side, they won’t now achieve the targets to get their free shares!

Back in April, for no apparent reason other than “it was due” we went from 48 to 67 in a few days, and then within a week or so we were in the 70s. The fundementals from back then have not changed, other than we are closer to achieving the stated 8kbopde and it’s monetization. And next year we have another exploration campaign planned to add more - if it’s half as successful as the last campaign then we will just be adding more cash to the pile. And all this is BAU without any success with M&A activity, which SDX have indicated they are aggressively pursuing. So when sentiment returns - and it will - there is no reason why we won’t quickly rerate again. Remain patient and stay strong. Sometimes the market just gets it wrong!

The Interims was only 4 weeks ago and the Q3 update is due anyday, they’ve hardly gone to ground... if anybody is concerned about any particular point, just email them - they are pretty good at responding.

We are literally hours/days away from the Q3 update. That should include an update on BH. In the scheme of things the cash is trivial, it’s the transparency that I’m interested in. When I recently asked what was happening, I was told the situation was ongoing. We might all be jumping to conclusions so we should wait for the facts to be released by HUM.

I’m expecting announcement of a divi or buyback (both would be nice!) during full year results, which should come in March. By then the LOM will have been extended, we should be net cash positive and years of sustained cash flow will have been assured. If it comes earlier than that will be a HUGE bonus....

Q1 didn’t come out until the end of April 30th, Q2 was the 19th. So hopefully it will be next week, perhaps they are still digesting the BH debarke and waiting for more definitive news so they can include it. Or - hopefully - waiting on some more drill results to give some good news to counter the bad. Expecting lower volumes and the BH matter to be taken negatively. But with gold slowly getting more positive press and general equity confidence waining. The return of sentiment to commodities and PM could come sooner rather than later. And with that, the stream of good news expected post Q3 should be the catalyst for us to FINALLY reverse the decline.

BHLL was set up to focus on Bunker Hill. If they’ve defaulted on the lease - and therefore the “right to buy” then there are two reasons. 1. They have no cash 2. Their is something more material we have no clue about! Perhaps it’s too renegotiate said lease/buy out on better terms? Unless there is a queue of buyers for it BHLL must have a pretty strong hand? Everybody is speculating on 1. If it was 1. Then the business model would be pretty much dead and the next RNS will inform if that - the next RNS is obviously the key one. Anything else spouted on this board is hot air and speculation. We could still pull a rabbit out of the hat...

All you nah sayers - hands up if you’ve contacted HUM? No? Thought not!