The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Hi LJS
we use the broker SHARD, they haven't released a new note for a while now, I think if you Google "Shard Capital Galileo Broker Note", it comes up, albeit a few years old. Its a very good point, regarding coverage of our assets. towards the end of last year when the accounts were published we had line item of some £60K for a broker on there. CB made a point in the interview that followed about how much costs have gone up (previous years if i remember rightly were mid 20k ish). Maybe better coverage would require more investment that the standard £60k
I'm going to have to hold my hands up on this one guys. I missed the info we have been talking about in terms of our holding in BC ventures.
Page 3 (the first page with any info in it, and paragraph 2, the first paragraph with any info in it.....oops) of the 2023 annual reports states we now own 80%
https://galileoresources.com/wp-content/uploads/Galileo-AR2023.pdf
"In Zimbabwe the Agreement with BC Ventures, we
acquired a 29% share of the company which we announced
on the 10th of August 2022 and at the time of the report,
we have expended in excess of the expenditure of USD1.5
million required to acquire 51% interest in two Zimbabwean
projects, thus entitling us to become an 80% shareholder in the BC Ventures company"
Update
Sandfires A4 expansion is 6km from T3.
Our 253 anomalies are condensed into 6km.
This confirms that if we drill copper here this very well could turn into a saleable mine site that encompasses all of the anomalies
I remember that Coyote.. "black sheep", "dark horse".....same....ish. haha
Thanks for putting me right. Shinganda has always been a favourite of mine.
I'm way behind today apart from reading the RNS. Just about to listen to the podcast.
I really like how the AGG survey shows a concentrated pocket of potential copper containing anomalies. If you were to drop a mine shaft, you'd want it in a place that's close to alot of our bodies. Looking at Cobres report theirs seem quite spread out. I feel this increases our potential of 253 and puts us in a better position for the land grab
I'm going to catch up and maybe compare 253 to 039 and 040 reports from 18 months ago. Also sandfired T3 and how far away the A4 expansion is. I'd our 253 is a mine in its own right, with 3 targets, the 2 not part of the Inital shift could be expansion projects.......for whoever the potential buyer would be
With a market cap of only $20m Aus, I think it won't be long now until Sandfire make a play to buy them. They are onto something with Kitlanye west, so why wait until they prove it up more and become even more expensive to buy. I think in that same transaction we will likely sell our KCB Licenses too. More so 253. Especially now sandfire is ramping operations up and finally making money, they will have cash to spend.
From a cash point of view, I went to the AGM and asked specifically about how much cash we have vs our commitments. At the time we had (when you collate the RNSs) $4m to spend on luansobe, $1.5m on kamativi and bulwayo and $500k on shinganda.
The answer was that all of our commitments were settled apart from the new asset in the North Western foreland of zambia in which we have a commitment of $750k over 18 months. Another share holder also proved about dilution in the same conversation and CB replied that they would not do another cash raise and instead opt for utilising the shares we have in Sandfire and Afrimat to sell to obtain cash.....confirming with Joel (also on the top table in the agm) that we could "get hour hands ok the money" in 24 hours if need be
Kevin says the name "Galileo resources" at about 59mins and mentions they are going to Namibia and will have information to report back. A bit miss leading imo to signpost GLR in the podcast and it not really be discussed.
Good work Coyote
I believe we are outstanding further assays from the 2000m drilling programme.
From starting in Sept 23 we were reported 8-900m drilled in November
Hopefully they got most of the remaining 11-1200m in before the wet season
They seemed to ike the look of hole 17
I think you're right HD, 26mt and 0.58% on surface at the Kamativi (ex Tin) mine, just "over the fence" we are getting drill results of 1-2% less than 60m deep.
Im 100% certain in the AGM it was said we had spent over the £1.5m commitment on Kamativi and Bulwayo. Iv asked Joel recently to confirm if that now means we have our extra 51% as per the contract. He said hes travelling for business in southern Africa and will get back to me once he is back.
if there is $1.4 Billion being spent on Kamativi mine and processing plant, you can bet they will have done an analysis on when the mine is exhausted and where is the next ore is coming from, and/or how to get more ore to mix with the 0.58% to enrich is. Martyn was "....going to a meeting...." aftrer the AGM. a few week later Iky gets the first of his tests from his source
Good points Iky and my thoughts too. They also have first right of refusal on the rest of the licenses to buy and a chance to invest further and put a member on the board of directors. They wouldn't build that into the contract if they didnt think the company would be expanding.
My personal thoughts on the KCB now, are that it has stepped outside of the original agreement and some "give and take" deals are being done. SFR had to spend $4m on "sold" Licenses on 2 years from the transfer date (which has lapsed now) and a good proportion (50% ish) of that was for specifically drilling PL250 and 251 which are closes to their T3 and A4 expansion and Cobres Kitlanye (and our 253 as we all know). if they didnt spend it, then we would receive back the delta from the $4m.
in the half year results we got an update on each of the "sold Licenses" and in relation to 250 and 251, there were no drill updates as said in the contract. In the AGM Martyn was telling me that there were problems with SFRs AGG survey plane and it had been getting repaired for a long time (I'm sure i mentioned this in my update from the AGM around October November....but hasn't become poignant until now). This is probably why there are no drill results on 251 and 250 as there couldn't be an AGG survey to direct where to drill.
however on the flip side, and this is just my opinion, now they appear to be flying again, they are giving us results on PL253 for free (most likely in payback for not getting as far on 250 and 251 as they should have). I imagine though the essence of the original deal still stands and they will drill 251 and 250 and we need to see the results when they arrive albeit delayed
all imo
Your behind the scenes hints fits in with this article Iky
https://www.google.com/amp/s/www.herald.co.zw/remodelled-kamativi-mine-back-in-business/amp/
Chinese company and zimbabwe putting huge effort into lithium in kamativi and the mine and processing plant expected to be opened up by the president this quarter, particularlythe open caste mine section. 1.4 billion project. A simple Google of kamativi zimbabwe and there are multiple articles of the town of kamativi once again becoming a boom town. CB must surely have got in there with our Kamativi new discovery. Seems like it's just a matter of time for us
This is very interesting. A major giving away money and advice for free. Total 6 small cap companies, at $0.5m each to create a cohort. No obligation either....apart from what seems like a moral standing to continue to work with the major post the period of collaboration. This shows that majors are sniffing out small caps with an appetite for investment.
Maybe a similar mindset with kamativi and the hints thag Iky has been able to get hold of. In comparison, kamativi is way more proved up that cobres assets (understand they are copper and lithium and in different countries....but by comparison we are further along the exploration journey). What offers must we be getting:-)
Ps Iky, thanks for your posts. Personally I think you made it quite clear that something has been achieved but it is completely out of your hands on when the market will officially be notified
I think that could be the case CHRI5P. Alot did happen in kamativi and bulwayo at the back end of thr Yr. The AGM was November and the RNS reported up to September as you say. No info in the "post period under review section" which would have been the ideal time to mention the expenditure and the increase in holding. I'm not particularly worried, just asking to have it cleared up
Hi AgentSmyth
I contacted Joel on Whatsapp regarding our holding in BC ventures, he said he would email back and im still waiting. ill chase him up.
at the AGM, CB definitely said we had settled our expenditure on Luansobe (£4m), Kamativi (£1.5m) stating we had actually spent £1.75m, and Shinganda (£500k)
so by rights, we should now own 80% of BC ventures a stated in the 24th July 2023 RNS
the half year report on 28th December never mentioned the above and still spoke in the past tense as if we still have to spend the money to gain the remaining 51%.
ill feed back on the BB when Joel Confirms
That's right, i predict 9 months from application (sometime in Feb) until we see movement on the cadastre. this is from looking at the cadastre most days and seeing other licenses progress and drawing a gut feel duration. it seems to fit, as CooperMelon are drawing up the Pit design now and that is one of the last things required for the application.
A good article released today by Zambias ministry of mines
"PROMOTE SMALL-SCALE MINING AS IT HAS POTENTIAL TO GENERATE MORE LOCAL JOBS AND SUPPORTS THE RETENTION OF EARNING WITHIN THE COUNTRY"
Luansobe small scale mining license springs to mind
Full article below
https://www.mmmd.gov.zm/?p=2670&fbclid=IwAR2LY8NKSqPLf-ol_hroxDF1G2xIO2YDp9IQFRCM3YhWk1OsXl70NbYof8s
Thats my thoughts to CHRI5P. We see this share oscillate from under a penny to 1.3 on nothing, so no need to panic. 13% up this week still and plenty more to go. Every week brings us closer to what we know the directors are working on
We are probabaly getting close to the time Assays coming back from kamativi drills now as well