Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Don’t forget Gati also took about £500k in the 1.6p share raise
SFR are looking to improve the tonnage and economics of t3, so whilst they make mine decision and build mine they will turn all of these close proximity targets into reserves. These reserves will feed in an alter the t3 DFS . So I doubt they will do DFS for each of these new deposits as they will feed into t3 DFS. Happy for counter arguments however.
All this means (if passed) that MTR can buy back at times it sees fit to buy MTR shares when they become undervalued.
This will have the effect of
1) if people have lent out shares to get them back
2) shorted shares to close short as SP should rise
3) MTR as an investment company to buy undervalued shares - none better than their own shares.
If the share price goes up they won’t need to buy, but having this in armoury to counter manipulation is an excellent idea.
Their average is nothing like 3p. Average is around 1.1p re THR.
Well done BigMJ, I suspect as we get closer to deal. As KML results come through etc we will increase in price. Especially as SFR now back at 6.94.
Anyone who has sold shares they don’t have will be looking reverse their position over the next few months, I would guess.
Well they haven’t found another t3 up to the level of DFS clearly, however they have drill results both at A1 and A4 . Royalties can be sold at any time the value is clearly incremental to what they find. Fortunately if SFR complete the deal they will drill very hard to improve the economics even more so at t3 given the proximity A1/A4. Clearly once the deal is complete here is no urgency for MTR to sell prematurely
Which is just for the 0.01% of exploration area t3. Currently capped for this area. Find another 3+ you can see the value. A1/a4 already looking good but early days. That’s why as MMc alluded to in interview that SFR want to improve resource and economics so should drill hard. New exploration finds will increase SFR share price ( post deal MTR hold 3.5%) and increase NSR value.. therefore better to have SFR explore at their pace with their cash than MOD do at non Turbo charged pace and get diluted along way
Yes concur Gross revenue minus transport, insurance and smelting . Plus add silver credits.
As per my post, I think hey have learnt and now have funds to do it, rather than 2 junior exploration Co’s starting from scratch with little cash, they are well funded in scrip, are the majority partner, can make decisions on the board from the get go.
The Turbo charged RNS was from Mod and inaccurate. MTR have learnt from MOD mistakes and are 24 hr drilling as evidenced by recent pictures on Twitter.
Don’t think he is needed. Adam Wooldridge vast experience in Botswana. And remember Kit E was given up by Mod thinking it worthless so if found to be dome might want to stick with Adam. JVR based in London now anyway.
For MTR holders we should also congratulate Michael and team for negotiating that NSR when the deal was made with MOD re T3 sale. That NSR I sure will look amazingly good and has been honoured by SFR. Any exploration find should not only increase the SFR price but will add value to the NSR valuation.
The dividend of a £1m should pay for plc costs in the main. Especially now the team have prudently reduced costs when KS and AM left - a large chunk of wages
Exactly scrip means no CGT compared with cash plus a decent team to get this sorted. The economics should be amazing using SFR cash and non dilution.
In the agreement any further funding of exploration in our JV land holding now solely falls on MOD. KML drill campaign now funded by recent 1.1million to get us to 57%. So should dampen down the banshee shrills of “placing around the corner how can they fund both campaigns”.
I would imagine that they envisage that this isn’t the major return on the t3 and wider asset, but the next step in progressing the deposit with as minimal dilution and expediance as possible. If SFR raises in line with the wider drill campaign this might be trigger a distribution. Or they see this transaction is a way of not have to raise and prevent the likes of yourself scaremongering, to allow development of the wide exploration land with KML and that will trigger a distribution. As a large shareholder I am content with that, others may feel differently
Xttps://www.sandfire.com.au/site/PDF/2386_0/SandfiretoAcquireMODResourcesInvestorPresentation
I assume everyone has read the presentation re what SFR plans to do to expand drilling and resource hopefully?
Hi Casey
Few questions
1) why not use the 2m usd dollars on t3 royalty, they will clearly get that are you discounting for risk of mine not happening?
2) very difficult to put a value on 2% NSR on the rest of the total package if deposits found which is looking likely this will be the bigger winner. Respect your valuation but it is likely to be bigger but reasonable to ascribe small amount.
I am sure there is a formula out there but don’t know it. There are many Cos that buy royalties so that would be quickest way I would put value based on potential at moment 5-10m USd but accept your reasoning
3) no value for Thai or Spain at least value we have put in.£2m gbp?
4) sable resources £46k
5) aul tsx £57k
6)imr tsx £54k
7)bgm tsx d124k
8) Sita invest £150k
9) big one for me is KML the accounts give our 50% as £4665178 as value. I think reasonable given we have just got 10m AUD for our 30% in mod JV exploration land
They would be my main issues and would uplift price.
Well given the mcap is below the deal value, KML is currently valued at £0. However with Cupric and T3 going into production makes these very near properties of KML even more valuable. Also MTR in a lot more control than with their MOD relationship, and now have a SFR share valuation of £23 plus dividends, so can’t be bullied as they have liquid scrip to sell if needed. I expect this to grow as SFR other projects develop.
We need of course to see that the KML land have mineralisation so we await drilling.
The real winner in this deal is the NSR this could be worth a fortune to either keep or sell on.
And still have the upside from discovery as SFR share price increases.if it was a cash deal I would be disappointed.
The NSR is real beauty and these things can be sold for cash I would imagine when more valuable
KML land right next to Cupric and t3 now both highly likely to be mines as opposed to middle of nowhere in Bots with no infrastructure
The economics will be amazing now debt/equity changes.
18/12/17 as per Lion RNS. Holding 0%
Yup that’s the plan. When I spoke to JVR all the domes would feed into t3, if resource found. T20 wouldn’t.
No 6km