Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Mind boggling yet here we all are :/
Politics to a point, depressed sector - but mostly cashflow and a route to it being the biggest hurdle. I do feel like some of the B2 stuff has been a red herring and it isn't the first time MC has alluded to 'jam tomorrow' without any fruit-ion (sorry couldn't resist!)
That said with POG back up to where it is there is life again and we must be close to an end-game in some way, shape of form. Good luck all. I'll be buying FTSE trackers should we make it out in one piece with any profit :)
“Note the very positive economics of La India are based on $1250 pog. Anything above that is pure profit. So even for conservative 2m oz resource that's $200m extra profit for doing nothing from the rise in pog over last few months. And that on its own (without the huge profits at $1250 pog) is about 10x CNR current market cap!”
Ridiculous isn’t it
Great vid/update
Key question about "what next" - ie BFS @ 9mins
- Looking at mining faster and picking up pace - 600k of mined gold @ 100k oz p/a v 80k p/a
- BFS based around this scenario (cost of $1m)
- Expand out feeder pits - Metzida is key given estimate of 300k+ oz (ie 20k p/a production) from these areas to aim for 110-130k p/a.. KEY NOTE is that permit is 2.8k tonnes p/a (100k p/a gold prod) and feeders would likely need additional permits, altough much smaller and expected to be much easier to work through, especially if mid-production already)
- Looking at adding an extra 1m oz of gold within 12 months -> 3.3-3.5m oz "global scale"
- THEN construction of 'base case' - didn't confirm finance scenarios (ie debt/equity mix "60/40" mentioned by MC)
"that's the beauty of this - we are high-grade deposit and lower quartile AISC. despite politics, gold still sells"
4 weeks permits
12 months BFS and prep
Then build late FY19
$30m MCAP and NPV of $195m and oz in ground @ $12 per oz in the ground... "very beaten up"... erm, YES
Final comment is that upside roughly 6.5x (ie £2.60)...
Agreed until the last part :)
$200m would be 8x current price (£3.20) and with say 3m oz (inferring the remaining to make 5m oz district?) that would be a paltry $66/oz paid...
If B2G do come in then they would have fairly little to need to pay versus the $120m mine construction cost - all of which pales of course in comparison to the $1.6bn+ of PROFIT within the ground.
Some seriously large considerations/discounts for associated risk can be made and the NPV remains fantastic versus today's prices.
But we've had many a false dawn so let's not get too carried away just yet :)
There for the protection of the employees given previous violence? Always two narratives.
Looking at the size of the protest, perhaps 100 people - we've no way of knowing if all La India residents etc; likely fits to the 10% against, 90% for of the 1000 or so total residents.
It should be an interesting few weeks at least...
OK so this is based on the previous links etc and I'd love to be corrected where relevant...
Looks like there was the usual incited protests led by groups with an interest in no mining in Nic at all - rough google translations of the facebook posts make out that the wider region/government seems on board but there remain groups within La India that will oppose no matter what - looks like some people weren't invited and tried to storm the PC/protest...It mentioned displacement/moving whereas we know now that the most recent plans do not involve this - perhaps some inconvenience still with construction and tail-ends etc but this doesn't suit the group as well as being relocated!
Those videos/groups have tiny volumes of views etc but it remains a tangible view for others to see.
Interesting the way this was timed/announced - can't have been MC's call?
My gut remains that the Govt wants this to happen as gold/silver simply cannot be ignored given the current economic climate. It was never going to be 100% for but it would be good to have a majority of locals onside...
Thoughts?
I made a lot of money in crypto... problem is the next hour I lost it all (eg Lamden up 10x in a day)! A LOT of scams among those that "moon", even those with seemingly credible source (eg Titanium). Personally think that the tech will come good in some guise, however the ICO piece is a total lottery to be avoided. An interesting diversion last year whilst CNR moved sideways anyway...