Member Info for Dubliner

In London for weekend visit. Lots of protests (seemed peaceful) against climate change and use of fossil fuels. One lady arrested for defacing memorial up from cenotaph ( the women in 1st World War One). Then I see all the Paris protests about fuel prices, the logic being they would like to use more. As I say funny old world..

Wakey wakey you guys - seems you got a great deal there... not an investor (had a brief dabble) but would be a happy investor if I was in...

Oh and further to below this is what a Nomad does, AIM companies must have one;

A NOMAD is a corporate finance advisor, usually a boutique investment bank, which conducts thorough due diligence for the suitability of an AIM applicant for the exchange. The NOMAD, if satisfied with the company's business model, financial and operating track record, competence of executives and directors and intended capital structure, will assist the company in its preparation and application for admission to AIM. If the company and NOMAD are successful in their efforts, the NOMAD will continue to monitor its client — the LSE requires it. The NOMAD must act as the regulator, ensuring that the company complies with AIM rules at all times. The NOMAD also serves an ongoing role of providing advice on business operational or financial strategy.

All. SRES issued an RNS on this on 1st Nov. Our current Nominated Advisor (NOMAD) is Northland Capital Partners, they are merging with SP Angel and as part of that decided they don't want to perform this role any further. Below is an announcement they made to AIM on 1st Nov as per below;

Northland Capital Partners Limited ("Northland") will be relinquishing its status as nominated adviser with effect from 7am on 1 February 2019. Accordingly, Northland will be removed from the register of nominated advisers (as defined in the AIM Rules for Companies) on this date.

It is a bit like your coal merchant deciding they are no longer going to supply coal. They are no just stopping coal deliveries for you but for all their customers. In other words this is not anything specific to SRES. Our Company need to find another Nomad and there is a date this must be in place by. A bit like finding another coal merchant!

The words much ado about nothing spring to mind...

Hi Safe, you can readily check the Market Cap any time - click on the Share Price icon and it will tell you.
It is currently £3.42m

Yes we all know we need a permit.
PC has updated on this via updated Presentation (see SRES website), and via RNS (see end October RNS) and he did an interview with Proactive. Maybe you are not able to check these things ?

You beat me to it. Read and enjoyed. So much for fears we would not double it. I say to a certain Canadian put that in yer pipe and smoke it buddy.
Very high % now indicated.

Hi SGD, ref the warrants. The vast majority of these (250M in total) expire on 10th December 2018 - the info is in the bottom of the 2017 results..

Their exercise price is .24p so they are currently 'out of the money' and whoever holds them is not going to do anything with them if they can buy shares in the market now at around .17p. The S.P would need to be a little way above .24p for it to be attractive for the holders to exercise - my guess minimum 10% above because exercising will lead to dilution of the shares the holders get when they exercise.

Now my humble view is this. PC is the boss and he has the means to pull the strings here and levers to affect the S.P.
He could mention estimated tonnage of material we have, the volumes that Customers committed to in the MOUs and he 'might' (my guess) have been able to push for an offtake ASAP so the SP rises and those Warrants are in the money and a large % of them would be exercised thereby raising money at .24p.

So if my statements are right why might he not have pushed harder to get the SP higher.
Well perhaps we have enough funds to take us to Production - doubtful in my view.
Or maybe PC thinks we have enough money to last until we do sign one or more offtake agreements and perhaps he believes the SP will then be higher than the December warrant price and a raise then would be more advantageous.

Whatever the reasons it seems likely right now that by the time we get the results RNS in December those 250M warrants will have expired. We will then have hardly any warrants outstanding, we have no debts (that I am aware of) and a blooming exciting 2019 ahead. I am very hopeful but as I said things can go wrong so crossing digits.

Sorry to hog the posts and that will be the last of the weekend (unless someone raises something I really must respond to).

Angela, ref your latest post. We have current circa 2.5BN shares in issue.
I note your reduced suggestion of an 800M shares versus your prior post where you suggested we might need to get to 5/6 BN shares in issue to achieve Production. 800M shares would raise around £1M post costs at the current S.P.

I personally believe you are still on the high side and hope for a smaller raise - time will tell.

Our results are due mid December for year to end Sept 2018.
At last results (to 30th Sept 2017) we had around £200K left in the pot. Since then we have raised £500K (6th Dec 2017 RNS) and £400K (24th July 2018 RNS) so guessing around £810K in the pot post raise charges of perhaps 10%.
Add to the £200K we had and it comes to circa £1M in the 'plus' column.

How much we have spent this year will be revealed soon in the results!

In response to Rodster's post that we might not see any off-take agreements until we get the mine permit. I believe a contract can be written that ties parties to an off-take deal on the understanding we get a permit by a particular date. Certainly our keen Perlite buyer/s are going to want to have some kind of certainty for their supply before their current supplier goes 'downstream'. If we can get an off-take prior to a placement then obviously we would expect to be raising at a higher S.P so need to issue less shares.

Finally some fag packet numbers based on the October RNS / latest Presentation and Beaufort research note.
Perlite output starting 20K & rising to 100K tpa by end year 3 / start year 4.
Based on $100 per tonne at the mine gate (SRES latest presentation)
$2M per annum revenue rising to $10M per annum

Pozz output starting 100K & rising to 300K tpa by end year 3.
Based on $65 per tonne delivered (2017 Beaufort – guessing now on the low side)
$6.5M per annum revenue rising to $19.5M per annum

Together the numbers are $8.5M rising to $29.5M per annum revenue.
Minus costs for contract mining, processing (?), delivery, G&A costs, convert to GBP… who knows what the bottom line might be…

I should add this is AIMHO, DYOR / calcs etc, lots can go wrong..

Hi SGD27, thanks for the link. I guess we just have to 'watch this space' ref the closure. I asked Patrick some time ago if he would consider a scenario where we only initially mine for Perlite and he said yes it was a possibility...
If Navajo does remain open for some time longer then I hope that Cement Companies will want to look at alternatives to Fly ash anyway. I am guessing we have a superior Product.

Our 30th Oct RNS had these comments;

>Pozz<
"the cement company concerned has expressed a desire to continue co-operation with Sunrise, working towards a commercial arrangement"

>Perlite<
"The expander has expressed a strong desire to work with the Company as a new supplier of perlite to its facility"

I already noted the subtle difference (one word) in the respective wording.

I guess we don't know what contractual arrangements are in place between Cement Companies and Boral etc for Fly Ash and how long they are tied in if it remains open.
So worst case (I hope) we get underway with Perlite and best case (for us not those who are impacted) is that the Power plant does close...

Hi korvet - thank you I am most obliged (and relieved)!

As it is the weekend and my tiling job is done (took me long enough) I may indulge myself with a few posts on SRES over the weekend.

Before I do thanks to Sam for the Boral presentation - interesting stuff. I see they bought Pozz from a mine in Utah.
To the poster who questioned my recent purchase of 2M shares - you might have responded to apologise for questioning it but hey ho.

Picking up on Rodster's comments about Junction.
I thought I would put some current value on things.

We have 50K shares in VRR as of around August 2017 when the sale was concluded.
We will get 50K more shares when drilling starts - imminent / next week?
We will get 250K shares if VRR file a 43-101 compliant resource - that assumes drilling success.

Finally we have a NSR (Net Smelter Royalty) of 3% so if Junction goes into Production we would have a future income stream from it. The then owner of Junction (might not be VRR at that stage) can buy up to 1.5% (half) of this NSR for 1.5M USD (based on 500K USD per half percent).

So what are the shares currently worth.
According to my google search VRR are trading at .21 cents Canadian per share mid price. Going by the mid price (this is very rough and ready) then;
50K shares is worth around £6.2K - we have that much value now.
50K on drilling - so now we would have 100K shares worth £12.4K

Now we are down to things being successful.
It could take several years (guess minimum of 1) for them to file a 43-101 resource.
If so we then would have in total 350K shares worth £43.4K based on current share price.

If (and a big if) the upcoming drilling (and subsequent assay results) are a huge success then we might expect VRR shares to increase and perhaps they might increase dramatically (look at SOLG share price graph to see an extreme of what can happen).

Then the shares would potentially be worth a decent amount and the NSR could become more valuable.
SRES might decide to sell the NSR (some Companies buy these things) should Junction be a success.

So we should know soon enough if they find anything that might turn the current value of our interest in Junction / VRR into something that might get us more interested!!

That is all I want to say about Junction.
Hope this is of some use...

Can I trouble one of the shipwatchers here to give an update please - are we defo on the way and making good headway coz I saw couple of confusing posts on this front.
Thanks

Hi Angela. You misunderstand the VR issue of shares statement. We sold them our Junction project in Aug 2017. Initial payment 10K dollars plus they issued us with 50K of their shares. When they start to drill Junction they issue another 50K of their shares to us. There is a final instalment of 250K shares to us if they file a resource on the project.
So none of this increases SRES 'shares in issue' it just means we have some VR shares on our books like we do in Block Energy. Not hugely valuable now but who knows perhaps their value will grow in a success case for those Companies.

I don't disagree with your comments about a possible cash raise. In fact I feel it is very possible. My hope is it will not be a large one and can be accompanied by big news of off take. PC said in the recent Proactive interview that an option is to sell our Pozz and Perl raw (run of mine) and that we might contract out the digging and transport. He said 'not zero cost' but next to that - we might just need working Capital.

My view is PC has made the funds from recent raises stretch a long way. We have funded a lot of things this year and perhaps the spend will lessen now for a while. We do know there is a reclamation bond to pay as part of the mining permit application but no idea on quantum of that.

Good luck with your holding here.

Thanks for that Mr T... I see my trade there and couple of other buys - SP looking a tad perkier...

Thanks Mr Turpin, no idea how I would check that but it explains things .... and makes me not look like I am telling porky pies (smiley face).

Happened to me before.... below is from my HL account transaction history for today;

Sunrise Resources Ordinary 0.1p Shares
2000000 @ .157

Trade value listed as -3,151.95

I can quote the HL reference too but probably better not...

Managed to grab 2M more just now.....

Hi Min, well done on increasing your holding level - hoping to add some more too whilst the price is still low.

We may get more news in next several weeks.
Good luck to all....

Hi SGD27. Well spotted, thanks for pointing out the updated presentation.
Interesting;
Slide 15 - samples off Pozz at a number of other cement Companies (sounds like at least two)
Slide 16 - last point, ties in with July update where it seems some Perlite testing is ongoing for building materials and perhaps filtration.
Slide 18 - this is important slide. Seems like they might consider a grinding facility somewhere - ideal if close to rail links so product can be transported to much greater geography.

Seems like there will be a lot more news to come. Would not surprise me if we partnered up with a Company who has the means to fund some of this investment that would bring value add to Pozz and Perl products.

AIMHO and good day all

Min, all I can say is that now I have 20M shares.
Not happy at all with the current SP but in for a penny in for a pound and all that...

Truly though I am sure some folks in your list are genuine about their holdings but others who knows really.
Am please you are back posting and interested if you have any new insight on things poss the update of last week and the interview.... ?
What would your guess be for contract mining per tonne?
How would they do that, presume not leaving plant on site for days / weeks on end.
Would we try to mine in batches if the Customers can store their side - guessing it makes things cheaper....