RE: BOD22 Oct 2019 15:37
Cobre alone is probably worth more than £5 - £10M imho. Cobre even now generates c.1m USD Free cash flow per year. This is based on current figures since the Loss of SMLs biggest Customer. You only need to scan the last 4 quarterly reports to deduce this much. And there is plenty more to shovel if SML can increase the customer base.
There may also be some legal redress in SMLs favour for breach of contract. Any predictions on this outcome would be highly speculative so it's best to just to layout the text from the RNS...
The claim consists of three elements, namely:
1) in excess of $2,300,000 in relation to payments outstanding to date;
2) in excess of $19,000,000 in relation to lost profits for the balance of the contract; and
3) punitive damages as permitted by law.
Leigh Creek update on 30th Sept RNS
"In 2020, the Company expects cash flow and profitability to improve dramatically, as full scale production commences at Leigh Creek Copper Mine."
This could generate c.$5 USD free cash flow per year if the figures in the presentations and Podcasts are any indication. That's a huge upside for such a small mcap. And if they reach the phase 1 target the operation will expand further.
Redmoor - Its all in the scoping study
The recently completed mining study, while still based on an Inferred Mineral Resource, provides SML confidence that a major portion of the recently announced resource of 11.7Mt at 1.17% SnEq can potentially be economically mined.
"Using the results of this study, SML believes it has confirmed its view that Redmoor has the potential to be a world class tin and tungsten mine which will deliver attractive returns on investment."
Probably about £2B in situ metal NPV c£100m - Valuation here will move with Market Sentiment and commodities but it has great potential.
$0.76m USD in the bank on 30th Sept
I'll assume this includes the R&D grants in totalling 0.8M AUD (0.55MUSD)
Early Redmoor Payment of 0.3M AUD (0.2USD) and will draw on Q4 cash position
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