Member Info for Dcat80

BF- don’t blame you. Might as well take advantage of selling. 30% off the 12p highs and can buy 10% less than placing at present.

Was expecting to see a 250k-300k delayed trade, maybe it’ll appear tomorrow. If not MMs are really taking advantage of a weak market. Maybe just some end of tax year shenanigans from someone leaving things late this year. Kind of glad my pension hasn’t transferred through already!

Don’t t have to use it for posting, but setting up an account just to see companies you’ve invested in tweets is vey useful, plus you can direct message each other (like email) which is very handy. I also find it useful for following breweries and keeping upto date on beer releases ;)

I doubt I’ll be posting regularly if the herd arrives and this bb gets full of idiots.. better people drop me a DM on twitter before so I only them and can chat there if need be..

The stage largo are at for the $25m Capex is just for the ilmenite concentrate though, it’s the further work they are doing on upgrading to pigment grade where the money really is.

Not sure I’ve the link saved, but their ceo Paulo discussed Tio2 and the difference in value between producing just ilmenite and a pigment grade product within. Think it was September or October last year if you want to look.

Ilmenite as the base product only has a Tio2 grade of circa 50%. From memory it sells for circa $200 per tonne. Ilmenite can be processed into a pigment grade of purity of 99%+, it is this end product that’s used predominately as the end product going into paints etc. pigment grade product sells historically over $3k per tonne, spending last year in the $2500-$3000 per tonne range.

It’s the high concentration of Tio2 we have in our non magnetic ore that is where our deposit stands out. With the costs involved processing 1 tonne of ore the lower grade doesn’t provide margin. Whereas with our grade for example being circa 150% higher than largos (which is decent) that means are deposit is well suited for upgrading to the pigment grade (in my view!)

SM- thanks, I’d missed that largo release. Frustrating it’s only on the ilmenite concentrate stage referencing still reviewing pigment, however it does give some more numbers to work with.

Also remember buy out was £170m for 33% ownership on $1.4b NPV/166% IRR? So just shy of 50% NPV when economics probably justified nearer 70%.

Those $1b NPV/100% IRR projects are rare, would be awesome if we could join the club

I’m expecting higher for the Tio2

PEA was based on 1mt PA. 400k is non magnetic with 33.75% Tio2 content. So 135k pure tio2 which pigment grads is pretty much. $2500 per tonne = $337.6m revenue per annum.

If you (ultra) conservatively work on largo grade of 13% being opex cost (it’ll be lower as they expect to make money!!) then it’s still $207.5m. Tax and NPV discounts would apply, however still think IRR would be over 100% (guessing chemical plant cost $125m or lower).

NPV harder to say, if whole deposit drilled out without a shadow of a doubt we’re talking any billions, perhaps with higher annual throughout as reserves would support then. Is it possible for a $1b+ NPV 100% IRR at stage current drilling gets us to? That I’m not sure on, if so project is in the same elite band as hot Maden (those familiar with Marianna resources will know it), or Adriatic resources project (still listed.

Silly mistake in below, 2nd paragraph should of course started with either continue with magnetic ore (not non magnetic).

It’s good to see others trying together head round the potential economics. I consider the chances of us getting it spot on are slim to none, however I’m extremely confident peer comparisons, awareness of grade and commodity prices can give us a very good idea of the ballpark we’ll end up.

Capex of the chemical plant is definitely the hardest figure to get a gauge on, as I’ve said before I’d very surprised if its a stage we could expedite without a project partner with deeper pockets (such as Largo). However we can get a good idea of the margins in play from peers opex, idea of potential revenue from our grade, peers grade and commodity prices.

Very much looking forward to our first economic report covering the stage 2 proposition.

There are a few options.

Either continue with non magnetic ore continuing to be sold just as concentrate as per the basic operation in the released PEA, but then building a chemical plant to process the non magnetic ore onto higher grade pigment grade Tio2 product similar to what largo envisage. I have it in my mind largo had a $125m Capex figure, not sure if USD or CAD, nor the amount ore they envisaged processing (if all its circa 70% of 1.5mt pa - double that are 400kt PA of non magnetic ore a 1mt Jangada operation would provide.

Alternatively a solution maybe involving fodere technology which would also produce a vanadium pentoxide product. Not sure on price on this or whether with our high iron content this would be possible or financially better.

Good to hear, unusual not to have the most polite guy on lse checking in on us ;)

I’m well thanks, just frustrating my 3 conviction plays all circa 25% off recent highs. Been a nightmare last week!!

Luis before has always come across as no nonsense kind of guy, maybe due to being a lawyer! Either way for him to be upbeat and make those comments I think we can very confident lots going on, it’s not like they were made pre placing but after placing and Valore share sale!

DS- confident there’s lots going on, just a matter of waiting. Madness seeing selling below placing and at current MC. In the final stages of waiting for a former company pension provider to release funds to my SIPP, at the moment it’s like there are sales on but I don’t get paid until the following week!!!

No daily check in making sure we’re ok, hope all fine with you.

Had a look at the company you mentioned. Think distance makes road transport unlikely to them, guess possible road to port pecam then boat to their nearby port, however I’d think more likely the mills at the free trade zone in port pecam. I’ve come across two there before when looking, but can’t find my notes on them at the moment. If I do I’ll post here.

Cyber - point I tried making Friday. No cut off grade in our long intersection, if been reported with say a 0.15%-0.2% cut off the average grade would undoubtedly have been higher, when it’s modelled and jorc produced a cut off will be used. You might have to shift lower grade material, but you’re not going to put it through the plant and waste acid on it..

O&W - no way half the money is going to africa, only little drilling in Zambia planned. Plus fair bit of phase 1 covered by September raise, warrant conversions only going to have helped.

Might have enough for circa another 20 holes (average 1000 each @ $250 = $5m). That might be stretching too far, but I’ve no concerns about short term financing, unless CB gets offered some and can’t resist...

P11 gives feel inc $250 per metre drill costs (4000m at $1m)

https://xtractresources.com/wp-content/uploads/Bushranger-Summary-Presentation_April-2020.pdf

Not yet, the new senior management joined on 1st March will probably be responsible for that. Can get a feel for the type of set up by the photo of a similar operation 70km to the west.

Without cut off you can’t do direct comparison, although shallower at moment does appear better grade, but would also have included some lower grade which jorc discounted. Today’s hole confirmed continuous mineralization, future holes testing the extension will give us better guidance on pockets of grade which will vary in places.

Jorc was to a 0.3% cut off I.e. average not bought down by sectors sub 0.3%. Today RNS didn’t include cut off unless I’ve read right past it, grade would have been higher if used, but obviously not continuous 900m. Assays on the further holes testing this extension should give more guidance, then revised Jorc will use a cut off.