Min, that is just a summary of bits from the results so zero new info.
If the 'Big Forward' is about to start I don't think it will be on the strength of that article.
Far more likely that we get Clayton news which 'might' start to move things.
Cont’d..
I noted that the usual Stragetic Plan section of the Results has been dropped.
This showed what we were planning to achieve for the year and how we did against that. It also provided a target for the next year. On page 4 under Strategic results we have this statement;
“The Strategic Plan is on track although delays to the permitting process have meant that we did not meet our objective to be in production in 2020. Nevertheless, our CS Project is now fully permitted, and we are aiming for first commercial production in 2021”
** Comment, the RNS of 27th October had stated we were aiming for first Commercial production in Spring 2021. My hope is that the Company are still working to Spring 2021! **
One other point is around Warrants. No warrants were exercised during the year ending 30th Sept 2020. However a number of Warrants were issued this year – 74.4M to be precise as per pages 40 and 41
Of these 39.4M allocated to Peterhouse Capital who did the 3 placings. So in addition to taking a fee (I believe 5% of placing value) they get warrants which have a 12 month expiry and based on the placing price. I am in the wrong job!
Warrants for the first two of these three placings are comfortably ‘in the money’ and no doubt the next annual results will advise of them being exercised. It seems likely to me that Peterhouse will have been selling the shares they got through the warrants (Brokers don’t tend to keep them) and ‘perhaps’ the sales of 8M shares on 10th Dec at below bid is an example of one of these sales? This might explain why we so often get NT for dummy sells!
There was another block of 35M warrants at .195p were issued this year at 6th August 2020 which are valid for 5 years. It seems that the Remuneration committee, chaired by Mr Roger Murphy, awarded 30M of these to Patrick – page 22 has details and is described as a long-term incentive plan.
The warrants cannot be exercised until after 5th August 2021 and half of these (15M) can only be exercised after ‘The Company makes the first sustainable sales of perlite / pozzolan Product from the CS Project’.
I note on page 42 that Patrick now owns 231M shares (includes 100M shares from the Feb placing which he participated in) plus the 30M assigned warrants. This is a great holding and Patrick will be pushing to get CS to production and to increase the share price. For the warrants, if Patrick can get us to Production and get the SP to 1p those 30M warrants would be in profit to the tune of circa £240K. Every 1p on top of that in the SP increases that profit by £300K.
Summing up my thoughts for this and prior post.
It has been a very solid 12 months and we have some good possibilities on the precious metals front.
However, stating simply ‘2021’ for Production and saying this and that will be done ‘in due course’ is frustrating. We expect more detail and if plans go awry then so be it – stuff happens in life.
I hope that folks found this analysis of use.
I did not get chance to read through the results Friday but have now had a detailed look and wanted to post my thoughts. My guess is that some folks only read the early part of the document so perhaps missed some of the details.
I prefer to read as a PDF viewer from the SRES website and any page references below are based on this 45 page document at;
https://www.sunriseresourcesplc.com/downloads/sunrise-resources-plc-rns-final-results-11-december-2020.pdf
Firstly the results are for year ending 30th Sept 2020.
The results for the prior year were delayed as we will remember and were published via RNS on 19th Feb 2020.
I noted some disgruntled posts on Friday but perhaps we should look at the year as a whole firstly.
The SP at 1st Oct 2019 was .12p and at 30th Sept 2020 was .255p so more than a doubling in that period.
We received all required permits for commencement of mining during the period including a FONSI for the Environmental Assessment.
We have paid the first bond ($106.9K) for the trial mining phase (noted in RNS of 29th July 2020)
We raised £1.47M net of expenses across 3 placings in Nov 2019, Feb 2020 and Aug 2020.
At end Sept we had cash/equivalents of £1.089M so are well funded for some time to come.
We have put one drill hole into Clayton and are awaiting the assay results for this we hope by Christmas.
We are progressing plans to drill Newark (Nevada) and Bakers (Western Australia) in early 2021
So based on the above summary of the year then perhaps we don’t have too much to complain about!
A few other snippets from the Results;
Page 9 – Perlite typically sells at US$72 per ton at the mine gate but coarse and super-coarse horticultural grades can command a higher price.
**The price is obviously subject to negotiation with Customers, slide 24 of our presentation on the website indicates a possible US$100 per ton**
Page 9 – Looking at the update for Ridge Limestone project it seems a bit of sampling has been done this year and they have founds some zinc at 15.8% in grab samples so we might see more on that.
Page 10 – A comment for the Stonewall project advises that the Company has received outside interest.
To be continued in a subsequent post…
Hi comeonsres2 - I ticked up your post.
We all get frustrated with shares as it is real money at stake.
Stand by for two long posts where I have done an analysis / summary of the results which I hope folks find instructive!
For accuracy purposes I think the 16th Dec was that interviewer ladies birthday and then discussion if assays will be back by then. I think PC flippantly said he would speak to the assay office and see what he could do so they were - obviously that was a joke. So the only commitment was pre Christmas and that it might be a nice present.
If Ageos is still reading here occasionally be interested to know what kind of grade of silver we would need to make any possible buyer or JV interest sit up and take notice.
Appreciate the links SGD. I am and have been invested in other explorers and read the term/s in other RNSs.
I believe that AGEOS also pointed out it is a geographic term / description (my words).
Irrespective of my somewhat pendantic views on accurate interpretation of terminology I remain very hopeful that we will get good news from the assays. If we do what happens then will be interesting in terms of how Clayton might add value for us all.
Ladybug, strange message there as I posted on SRES on Saturday and in that noted I had recently bought some more here despite my impatience for a CS update.
Not sure what you want me to say!
I did not reply on Min's post as I think he again misunderstands the term 'massive' in massive sulphide but hey ho....
Hi Hocus, I made an enquiry to the Company about the mentioned larger scale pozzolan grinding test / concrete pour. I was advised that this was something that SRES are initiating for themselves to capture information; presumably on optimum grind sizes etc. It seemed to me therefore that this initiative was not be done by a potential offtake customer.
I think it is fair to say that things are quiet on the Pozz front with regards to the planned drilling in NE zone and the mentioned large bulk samples that were supposed to facilitate offtake negotiations.
I am hoping the silence is a good sign and that things are happening and it is simply that Patrick wants to keep things low key until he is in a position to announce something.
Updates on Perlite has been clearer but now we are awaiting news on the samples that we sent to 5 Companies.
I also notice the September interview with Sarah at TMS no longer plays;
https://total-market-solutions.com/2020/09/22/sunrise-resources-september-2020/
This is a pity as in one of the interviews Patrick said something along the lines of them giving investors more details on the 'financials' (I forget the exact wording) for our products and am sure that November was mentioned.
I remain supportive of the Company (I bought 4M shares on Thursday in fact; 2 * 1M and 1 * 2M block) but really feel a detailed update is very much overdue now and not just on Clayton assays.
Andy / Fax am sure Ice is joking about 8p by Christmas. I could not imagine any scenario where that sort of SP can happen in the short term..
Personally am hoping for good news on Clayton assays and if we get any Pozz or Perl info now this side of Christmas that would be a huge bonus. Am sure most here would settle for a much more realistic (but still optimistic in a 3 week period) .5p or above...
Totty, no probs. Agree you would think some of the 5 'Expanders' would have tested the product by now.
Would hope for some kind of RNS stating how the expansion testing went even if it will still be a little time before clients commit to offtake...
Hi Totty, the RNS had 2 pertinent bullet points;
Processing of 100-ton bulk sample of perlite completed successfully.
Perlite samples now sent out to potential customers across the USA for expansion testing.
So the processing was taking the dug up material and grinding / screening to the 2 sizes that the prior RNS said would be sent to clients. The 2nd bullet point confirms the samples have now been sent to potential customers.
Also in the RNS was this link which indicates it is ref Clayton but in fact also contains a good picture showing the line up bags of Perlite - paste into your browser and scroll down;
https://www.sunriseresourcesplc.com/clayton-silver-project-nevada
Hi Terrafin, agree and in particular Mr Swan moving his shares to a SIPP seems to me like a very positive situation.
The interview where Patrick mentioned we could get a nice Christmas present with Clayton assays was also of note as he is not usually that bullish but it was quite a bold statement.
The MMs dropped the bid to .27p again but offering .29p for a dummy sell and as Sam notes we have been NT to buy for some time now. Suggests the MMs have a large order to fill.
Thanks AGEOS for info (your reply to SGD27) which is very interesting..
Sorry you got a hard time on OMI stock.
If I had a question for you, as and when you have time, it would be to ask your thoughts on our CS Project and how you see that Business given we now have all the required permits. Do you think it will be straightforward to get Customers to sign up for Pozz in particular given that is our biggest resource? I know you were very familiar with other Companies / Competitors in this field. I guess things have moved along since your prior comments so be good to know your latest view.
Thanks again Burton for posting.
Patrick sounds positive on Clayton drill and realises that initial RNS could have been worded better.
Also it sounds like we have more prospective customers for our Perlite than I had assumed. Those taking latest samples seem to be in addition to the ones that already tested. Does seem very likely we will get some of them ‘signing up’.
All good so let’s have a rerate today.