Member Info for Eloro

SP Angel wrote:
While Anglo, Rio Tinto and BHP will be looking for signs of large scale mineralised structures the prospects may also host a number of smaller structures which may prove economic for smaller scale producers. *SP Angel act as nomad and broker to Arc Minerals. The analyst holds shares in Arc Minerals.
It's intriguing that smaller structures have been mentioned. If AA was going to buy the lot, there should be no need to muse about smaller scale producers. Why are they being mentioned at all? Surely the focus should be on AA, and updates given regarding their progress would be more meaningful. Plus, the lack of results such as that from hole 5 is a mystery. It is a good sign that AA hasn't walked away after 3 months. So, there must be something worthwhile holding their attention. Another call would be nice.

I do hope so Ortus. There is danger should AA walk away. Other interested parties might ask why a major walked away if what we have is tasty, and take the mick with low ball offers. Hopefully, it won't come to that and if they do walk away, let it be that our cu grades are so high, they couldn't afford the asking price.

Not sure what to infer from other majors now being mentioned by SP Angel, and the annual report. Are we being prepared for the news that AA are going to walk away? That would be disappointing given the excitement evident at the July 29 call.

2 possibilities to this 2,500 soil samples discrepancy a) there are 2 different 2,500 batch of soil samples at different stages in the cycle b)the annual report was written before September 21st and wasn't updated prior to publication to cover the fact that the assays have since been received.
I don't think it was intentional to cause confusion. I really would prefer a full sale so that we are not left waiting for another period of uncertainty given covid. I got the impression that Arc was pressured to sell off the gold assets so that a deal could be made on a pure play copper company. Why do that if we will end up still having to drill again and again? Clean sell so we can all focus on surviving the coming economic storm.

"This exclusivity agreement will allow Anglo American to have its team on the ground and conduct an extensive technical review over our assets and, depending on the outcome of this review, Anglo American has the right to either extend the agreement and/or enter into a commercial transaction for the development of certain or all of the targets on our licenses."
At least the 3rd option of walking away without a deal wasn't mentioned. The expectations appear to have changed in that NvS is now saying certain or all of the targets. I had the impression from the call that he was expecting to do a deal for both Zaco and Zamsort, not for certain parts. Should we infer from that AA are now only interested in certain targets?

Please be careful up there on your high horse Ecwhke. Fossil fuel has driven the entire globe for almost 1 century. Most major countries are making the change to renewable energy which will take time. AE are moving into Cu to position itself for the future. That is good enough for me.
I would like to recognise the Poster WatchMaverick for the accuracy of his 1 Oct post. I am very impressed by his insight regarding ARS looking for new investments outside of Indo. Way to go.

I have been thinking about the fact that Arc are currently drilling 3 holes per month and that at that rate, not enough holes would be drilled within the EA period. NvS is not a fool, and he remains excited. The only answer to my mind is that AA must also have deployed drills in parallel with Arc as part of their DD. We haven't considered that possibility. NvS may regard that info as falling within the NDA.

F29 you beat me to it with spotting that "we are already in Zambia" couldn't be clearer and matched NvS AA transaction statement. Great find F29. I am super excited.

@555sss can you post the link which reported that the hole 5 assays are of poor standalone results please? I appear to have missed that RNS. Thanks.

Sorry, typo...we have received reassurance. .

It is interesting that we still haven't seen the hole 5 data, and although we gave received reassurance that the drilling is going well, and that mineralisation have been encountered at Fwiji, we still haven't seen any actual assay reports confirming the Cu grades involved. Not sure why that is, but we are 1 week away from the 3 months time line and AA hasn't walked away. That fact makes the wait tolerable.

I think it is very difficult to put a price on the deal because it will depend on how many Tier 1 deposits we have. So far NvS said multiple Tier 1s, so between 2 to 3 at least. I would want confirmation before making a guess. FQM facilities can be used I think in the short term until AA set up their own plant, or they could just expand the CSD at Kalaba.

Another poster put this up on another BB
https://www.angloamerican.com/~/media/Files/A/Anglo-American-Group/PLC/media/presentations/2018pres/building-a-world-class-copper-business.pdf
The article appear to be from 2018. It's worth noting that AA already had their eyes on Zambia long before the agreement, given the bulletin points under Southern Africa.
Whatever happens next will be worth waiting for I think. The post by F29 highlight another reason why Arc would want to get out of Zambia before their policies really start to hurt us. AA financially equipped to deal with the Zambian government than Arc. I agree with Chinared that David Wood wouldn't have been brought on board if AA wasn't serious.

I would be very surprised if the AA agreement, referred to as a transaction by NvS, end with just a earn-in/jv. Arc went out of its way to dispose of the gold assets. They wouldn't do that for just a jv, but would for a full sale of the company. NvS said the agreement apply to the entire company. It would be acceptable to sell the gold if the end game was a sale which would dwarf the money made from basically fire selling of the gold assets. I still believe that NvS would not have praised investors for hanging in there if he knew the outcome would not be good all around. Full sale not far away.

The exercising of warrants is an extremely positive sign given that Arc is a possible takeover target by AA. If I didn't see an increase in warrants being exercised, I would be worried because it would be a sign that the deal is in jeopardy. Here is a legal excerpt on warrants during acquisition :
"Treatment of Warrant at Acquisition. In the event of an Acquisition, either (a) Holder shall exercise or convert his Warrant in full with respect to all remaining Shares for which the Warrant is then exercisable and such exercise or conversion will be deemed effective immediately prior to the consummation of such Acquisition or (b) if Holder elects not to exercise or convert the Warrant, this Warrant will expire upon the consummation of such Acquisition. The Company shall provide Holder with written notice of the foregoing (together with such reasonable information as Holder may request in connection with such contemplated Acquisition giving rise to such notice), which is to be delivered to Holder not less than ten (10) days prior to the closing of the proposed Acquisition."
I will continue to hold until AA show its hand.

Thank you F29, much appreciated. I am now very reassured by the fact that Arc is currently drilling down to 250m because David is clearly behind that course of action. NvS has clearly stated that we are sitting on multiple Tier 1s, which points to the drills starting to find David's missing M Cu deposit.

Thank you F29. David's presentation I think was aimed at other Geo's because it wasn't easy to follow as a non-Geo. However, he said that Sentinel=5.2Mt Cu from an expected 30Mt, where is the rest? I, and I am sure all of us here, are hoping that the missing 24.8Mt are sitting under Arc's tenements. This also explain why we are drilling down to 250m. The presentation reinforce the reasons why patience is required here.

While waiting for the promised assay reports, I came across this recent presentation from AA Geo David Wood which I think might be of interest:
https://youtu.be/WfOQ2Qc_h1Y

Tony M performance over the past few months has been disappointing. He got PIs excited regarding an imminent deal, and he then turned around and berate PIs for having unreasonable expectations over how long it would take for a deal to be completed. I will not berate him further because I broke my own investment rule of never investing in any Indonesia related companies after the Bre-X scandal. So, I will have to hope for a good outcome sooner rather than later.

100% agree with you Peggycilla. 6 months not long enough to drill 8000m at 3 holes per month. Hence, a deal will be finalised on data AA believe are sufficient to derisk their investment.
@Cattleman, Google indicated the a third of all gold mined globally is a byproduct of copper mining. I recall reading that Zambia are looking to pass laws to ensure they get income from the gold byproduct from copper mines in their country.