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An excellent question. Reading from interim financials in August 2020 RNS, As at 30th June the company. Had abt USD2M in cash. THe expenses for 6 months January to June 2020 were about $2M. It not unreasonable to assume a similar cash burn rate especially with all these consultant reports due on the things that should have been dealt with at PFS level. One could be well forgiven for asking abt the current cash position.
Ask the bloke who wrote the last FS. These “value engineering “ things are things that should have been dealt with at PFS time but because PFS was skipped could not be dealt with to FS level within the time promised to deliver FS. TO complete to FS. Level means winding all the way back to new geological model and redoing almost all the work to same level of detail. SO approx same time and cost as the previous FS.
Just digging on the 3 proposed board members and one stood out
Stephen Lo has a long record with lippo group
https://www.globenewswire.com/news-release/2013/08/02/1478661/0/en/Asia-Now-Resources-Corp-Announces-Management-Changes-and-Appointment-of-Director.html
That’s one of Indonesia’s largest groups. Thats an interesting concern. Just yor and look up lippo group. It’s a torrent of stuff
https://www.latimes.com/archives/la-xpm-2001-jan-12-mn-11506-story.html
Note also down bottom of the asia now article the nam Marshall Cooper.
https://www.thespectrum.com/story/news/2018/03/20/news-brief-storytelling-festival-offers-trip-utahs-past/438597002/
What a murky pool
The current FS is based on heap leach recovering X% of the contained copper. Cu recovery falls off. A cliff when ore type becomes chalcopyrite dominant. The only way to go form this state to one where copper recovery is dramatically higher is to increase recovery in the chalcopyrite dominant mineralisation. Teh only way to do that is to replace heap leach with some sort of vay/agitated leach preceded by soem sort of oxidation system. Albion is a good example. AL that needs a radically different plant layout and brings in the need for a tailings storage facility. DOing this of course completely changes the pit limits. It’s a completely different project that may wel increase npv and increase it by a lot. Please dont underestimate the work it will take to bring it to FS standard
True except what they have cant be called a Definitive Feasibility study. (DFS). TM is onnrecord in ens and video saying they are reloading at the processing path or be something different to heap leach. One can only assume something like Albion process or similar. This is a fundamental change to,the project requiring almost,every aspect from geology to mine planning to processing and environmental impacts to be reworked to feasibility standard. Thats. A huge body of work which can be expected to,take as long as the previous FS. They are going to need a whole lot more than £2.5m to do that.
I note he also said he is expecting Consultants reports soon. Thats more bills coming in a hurry
I love this bit
“Value enhancement (VE) work has been ongoing over the past 5-6 months with further metallurgical test work being undertaken in laboratories in Indonesia and Australia. Initial results indicate significantly increased copper recoveries using an alternate leaching process to that selected for the BKM feasibility study“
Translates t0. - We made a huge **** up by skipping the pre feasibility study, the very study a that looks at options amongst which heap leach is just one and weighs them against each other. Instead we skipped that and made a big assumption that has now proven to maybe not the correct processing route. Now we want to wind back to PFS and completely redo the FS and all the environmental permitting on another idea.
Another couple of years of studies and permits ahead.
It’s impossible to tell given the lack of transparency around the whole transaction. Interestign movements on SGX around a listed company and a just below takeover threshold investment with some names traceable to AE/Sugih appearing on the board. Perhaps thats taking the AE attention and who know what proportion of available cash. I suggest the same as watching TM other companies and activity keep a close eye on Singapore and the related entities. Sad that this sort of “detective work” is needed when transparency would obviate such need.
IMHO opinion if the $2.5M is Not Locke in the bank account the whole thing is in jepeordy.
I would have thought that a company with next to zero receiving $2.5M into its accounts would be both material and price sensitive and should be disclosed. If it hasn’t been disclosed then perhaps its safe to assume it hasn’t happened.
Interesting blog from geologist. Thanks for the find whoever it was who found it.
The shareholding in Beutong is interesting. The 20% is listed as held by Media MiningResources.
https://modi.minerba.esdm.go.id/portal/detailPerusahaan/2560
That seems to lead back to a group controlled by a politician
https://en.m.wikipedia.org/wiki/Surya_Paloh
Not sure if that’s good or bad. Anyone have any views?
Those statements are not exactly consistent with the public record
https://shipandbunker.com/news/apac/686405-sri-lanka-approves-20b-investment-from-singapore-firm-for-second-refinery-project
Funnily enough or tragically enough whatever one personally feels or thinks about the sanity or lack thereof of funding limitations to companies that derive e income from exposure to thermal coal or oil, the limitations are real. A serious large percentage of banks, insurance companies and funds of all sorts have publically expressed policies prohibiting financing of such companies. The rights and wrongs of it are not material. It’s just reality. By making the ipo based around past revenue from Oil/Thermal coal trading ARS transforms into a company where revenue is exclusively derived from oil/thermal coal. That places limits on sources of funding for construction of the project.
Yes it was a Political demonstration by Freeport at the time that with the uncertainty over export rules and continuity of Freeport concession and so soon that they would not spend money exploring. Ask Magsus for the history it almost broke his heart.
The more I dig into the relationship the more I worry that it is so close that. In some markets it could bee considered to be acting in concert. ANy questions around that could be easily. Resolved with transparent and independent disclosure