Member Info for DrRemington

We’ll see Element. That’s the big take here, they don’t need to build a line for Pepas. Can you not see that, have you not read any RNS’s, watched any interviews / webinars, broker notes for the past 6-12 months.

Nice subtly cross ramp for GGP and whatever else it was.

No Element, there is no direction answer to that question.

Pepas is high grade,

at surface,

in a hillside,

power lines over head,

near a main highway,

to only 100m depth,

on a small footprint 200m x 100m,

Please point me to something similar, you’ll struggle.

Element, please explain how $20m to get the gold out the ground for tolling at Pepas is a joke?

Nice cross ramp. Ta ta.

Just grabbed some 24.60p. Excellllllent.

People still posting from other stocks saying you’ve less gold etc. They don’t understand the economics of Pepas.

A company could have 5m oz, averaging 1g/t from 500m depth…. They then need someone to stump up £100m’s just to unlock it. Then the AISC’s costs…Yes all good for a mid tier producer or Major.

Pepas could literally be dug out with shovels, over 5g/t at surface to only 100m depth over a very small footprint. The costs here are minimal, they’ll have a million suitors in line willing to stump up the capex.

Just filter him or jump in telegram n argue on there, arrange to meet or whatever men should do.

Not sit behind a screen arguing like school kids.

‘Perhaps a good moment for a Mining Economics for Dummies lesson - expanding on a tweet a few weeks back.

The are two parts to any mining economics equation - what it cost per tonne or ounce, or pound to produce a bit of metal, and perhaps more importantly, what it costs to build the mine and plant that allows that production to happen. Opex and Capex - the two things are intimately intertwined and must never be assessed in isolation.

There are no lack of companies that have on paper, quite decent projects. Couple of million ounces, a couple of grams per tonne - the sorts of project that were they in operation now, would be doing very well. But of course they aren’t in operation now, and that’s the catch. In the end, someone has to stump up the cash to build a mine, and this is where it gets tricky.

A couple of friendly fund managers explained the dilemma to us.

At one end we have the huge tier 1 projects that are clearly destined to be taken over by the majors. Amazing things, but maybe there are half a dozen of these in the world right now, and that’s being generous. Also, we have tier 2 projects that are owned by producing miners who can fund development from their own internal cash flow.

Then at the other end, we have sweet little things like Pepas that are cheap and cheerful to build, and just offer the potential to make a lot of money very fast.

These two end members are fine.

But then in the middle, there are the problem children. Projects that are maybe 8-10 years from production and would require 5-10x the market cap of the company to build.

This is where it gets hard.

Firstly, where is the money going to come from and how does this impact on dilution - quite a lot normally as debt is increasingly hard to find.

Secondly, that far out, the gold price used in analysis would be probably half of current spot, say $2500. This is just being prudent. But also, the funders would have to factor in say 5% cost inflation each year, which compounded over 8 years is basically 50%.

And so we have gold price at half current spot, with costs 50% higher!!!

On paper then, most of the gold projects on the market now, are not actually economic - on paper!! Now of course if the gold price in 8 year’s time is still $5000 an ounce, then we all wonder why they weren’t built, but that isn’t the point. The point is can they be funded now!

The problem then, is not lack of good projects (there are multitudes that make sense at current spot) but the lack of funding to build them.

We have no answer to this quandary, other than what we have done - to produce a project that avoids all of these issues - that we can fund, we can build and is immune to the gold price.

It’s not sexy, it’s just business.’

And a 200k buy joins it. The weak feeding the patient.

A nice 238k, £57k buy just gone through.

Nice to see Royal Road firing back up, Agnico a substantial shareholder over there.

Let’s see what they produce results wise, I believe they are North West to Anza? Up near La Virginaceta.

‘It’s more about producing profit, than producing gold’

That sums Pepas up perfectly.

£50m market cap… 13p when the recent placing took place at 18p with the likes of Eric Sprott involved.

Yeah sounds plausible haha.

There’s nothing wrong with Jan, though the majority fail to mention they currently only hold 33% of the project. I’ll keep my eye out for drill results over there.

Some people see $1billion in the ground and think oh so and so has $1billion in the ground also. And has an X amount market cap. Forgetting it’s a 1g/t average resource over a larger footprint has large costs etc.

Pepas is 200m x 100m x 100m, in an absolutely ideal location, into an hill side, near the main Cauca Highway, averaging a whopping 5.5g/t. Every 6 tonne is an ounce of gold… 5 year LOM(for now) is 40k oz per year, the AISC cost will be as low as you’ll ever see or on par with the lowest on the planet….

The recovery here will be sharpish.

400, the economics of Pepas are unreal. Hence the high valuation.

The exploration potential also has high value.(Nearby neighbour has a £1.2billion valuation with zero ounces, in this terrible jurisdiction)

The 38,000m drilling at Apta, which the geologist AGEOS gave an in depth, detailed break down which pointed to 2.4m oz. High grade.

The fact we see Mr Eric Sprott holding here personally and through his fund, our largest shareholder 12% is the most successful metal fund run by Mr Robert Cohen…

If they see value here then I’d take that as a better sign then mine, yours or anyone else’s advise.

In my opinion, we’ll see the market cap at double our recent high, £150m by year end. £300m. You can hold me to that one.

I see Tungsten still hasn’t gathered it’s a MAIDEN resource.

Make no mistake, the economics of Pepas are unreal and almost incomparable. 5.5g/t from surface to only 100m depth… Let’s just say the board are over the moon with the initial maiden resource.

They’ll be new institutions / funds who pounce whilst flimsy short sighted retail bail.

The gold price appears to be cementing itself over $5000. Excellent.

TungstenInvestor, do you understand the term:

‘MAIDEN RESOURCE’

1 rig, 10,000m drilled on a small budget has produced this MRE.

They’ve now £13m+, ready to add to these ounces.

You’ll probably have never heard of the Apta prospect.

Maybe stick to tungsten.

It was a sea of blue into close.

4.6m in delayed printed trades, they are far from all sells.

Easily over 1m of them are buys checking a few.

Let’s see what tomorrow brings. Tick tock.

JohnBriggs whose was calling this a dog even at 2p says 19p is coming. Better all sell up and move on. Let’s ignore the confirmed $1b Au in the ground.

After such a drop… Still 3% up on the monthly.

It’ll get back to the 30s in no time. News on many fronts due. Relaxxxxxx.

I never said that, Ralph or JCBo, your one of them, ha been banned have you?

If I had done that I’d be the first to admit it, it would have been a genius move. Nothing wrong with slicing at the top, that’s the aim of the game. Though I’m waiting for higher prices.

That’s my buying done for now. Let’s await the next news. Good luck to most.

Not sold a bean yet Tungsten. I’m an investor, I’m don’t starting crying and flapping with drops like this, I’ve learnt to add when it goes down. It’ll recover here over the next few weeks with more news due.

You’ve appeared from nowhere mentioning me a lot here on your posts, what was your previous handle. I think I could guess. 😁