Member Info for fatbanker

I do like an intra day RNS advising a new II holding.

Gemfields (GEM LN) 7.88p, Mkt Cap £89.3m – Resumption of operations at Kagem and Montepuez after a year of disrupted production and sales

Gemfields reports that it plans to resume mining at both its 75% Kagem mine in Zambia and the 75% owned Montepuez ruby mine in Mozambique during March.
The phased resumption at both mines is expected to restore them to full scale operations by the end of April.
“As a result of the assorted cash saving measures implemented by the Group in response to the impact of Covid-19, all but critical operations at Kagem and MRM were suspended since 30 March 2020 and 22 April 2020, respectively”.
Gemfields describes that the impact of the pandemic on travel and on the ability to assemble has resulted in “no traditional Gemfields auctions … [being] … held since February 2020, when USD 11.5 million was realised from the sale of commercial quality emeralds in Lusaka”.
In the interim period, it has held what it describes as “a series of sequential emerald mini-auctions, whereby bids were placed online after multi-city, in-person viewings of the gemstones by customers in November and December 2020, generating total revenues of USD 10.9 million … In 2020 therefore, aggregate auction revenues were USD 22.4 million, a fall of USD 178.3 million (or approximately 89%) when compared with 2019”.
The company also confirms that there was “no ruby revenue in 2020”.
Gemfields confirms that it will continue its current sales mechanism for both emeralds and rubies “in the near term” commencing on 15th March and that “Subject to Covid-19 developments, the Company is hopeful that it will be able to return to a more regular auction format during the fourth quarter of 2021”.
Describing “a grisly 2020”, CEO, Sean Gilbertson, said that “With the world's largest emerald and ruby mines producing no gemstones for a year, we look forward to seeing the supply and demand picture play out in 2021. No ruby auctions have been held since December 2019 and there has been no new ruby supply produced by MRM since April 2020, meaning the forthcoming auctions represent an important offering for both mid-stream players and jewellers seeking to secure inventory”.

Bushveld Minerals* (BMN LN) 19p, Mkt cap £226m – Vanadium prices rise as new demand meets tight supply

(Bushveld is invested in Enerox alongside 5.66% in Invinity Energy Systems)

Strong Buy 31p

Ferro-vanadium prices leapt higher last week as European traders and consumers rise 17.8% to $32.31-32.76/kgV in Western Europe
Vanadium Pentoxide prices rise in Rotterdam by 20.2% to 7.04-7.4/lb
European prices have now overtaken China due to tight supply, probably more due to available supply en-route to China.
Ferro-vanadium prices also rose 9.9% in China last week to $32.2-33.2/kgV
Ferro-vanadium prices in the US rose 1.3% to $34.1-36.3/kgV highlighting the premium paid on US vanadium.
Competition between Europe, China and the US looks likely to lift prices higher as the three markets compete for imports from South Africa and Brazil.
Construction machinery saw strong sales in China last year due to stimulus in suburban housing and new infrastructure projects.
Steel production also rose 5.2% to 1.053bnt last year recording a new high.
Demand for vanadium which is used for hardening/alloying rebar and other structural steel is also expected to have seen new highs
Orderbooks for construction machinery are more than double last year as construction companies gear up for new work.
Steel producer utilisation rates are rising globally as furnaces gear up for new stimulus demand
Conclusion: 2021 is shaping up to be a good year for ferro-vanadium demand and for prices

*SP Angel acts as Nomad and broker to Bushveld Minerals.

Serabi Gold* (SRB LN) – 73.5p, Mkt Cap £45.4m – US$17.5m fund-raising

Serabi Gold has issued a further 16.65m shares at a price of £0.75 in order to raise approximately US$17.5m (£12.5m)
We estimate that the new shares represent approximately 22% of the enlarged capital of Serabi Gold.
Serabi Gold’s principal shareholder, Greenstone, which owns 25.2% of the company, has agreed to “redeem the outstanding Convertible Loan Notes held by Greenstone being US$2 million together with accrued interest of approximately US$200,000 and the arrangement fee and other expenses of approximately US$333,000, to terminate the Subscription Deed and to release the security granted by the Company in favour of Greenstone”.
Chief Executive, Mike Hodgson explained that the fund-raising leaves Serabi debt-free and in a strong financial position to “advance our significant growth opportunities”.
Mr. Hodgson confirmed that the company has made good progress on the prepartion of the remaining licence applications for the Coringa project “with a trial mining licence in place to allow mine development, we will commence development of the underground mine this year. This will improve the project, hopefully allow better optimisation of mine planning, and put us in a good position to seek attractive debt financing terms”
He also said that the additional finance would enable the company to “advance some of the best of numerous exploration opportunities that exist in close proximity to both Palito and Sao Chico orebodies and I feel confident that over the next couple of years these exploration prospects will generate some significant resource growth for the Company”.
Mr. Hodgson has previously indicated that 2021 would see the company’s most substantial exploration effort so far and the additional finance should facilitate that escalation of the effort.
Conclusion: Serabi Gold is now debt free and generating cash from its existing operations at Palito and Sao Chico. The additional funds put the company in a position to progress the Coringa development and to advance its exploration ambitions.

*An SP Angel analyst has visited the Serabi’s gold mining operations in Brazil

added today. very happy to have this one in my PF

increased my holding here by 50%. For a lithium minnow to have Gangfeng so deeply involved is a bigger deal than todays rise suggests. gla

had another 25000 on the dip. short term spot prices holding up fairly well but longer futures are lower so from a pure tin perspective the dip makes some sense. However as a LT play this is still excellent value and thats why I am here.

https://secure.outsiderclub.com/181161?device=c&gclid=Cj0KCQiAvvKBBhCXARIsACTePW87cf8NM10Eqo15NSgFGo3JAFXm9LYley5QO-hrmUo7z8jnOOTo4tQaAl6_EALw_wcB

this relates to the companies existing dividend policy where free cash generated is allocated to reserves, maintenance, capex growth, debt amortisation, acquisitions and/or dividends, pretty much in that priority order.

the answer is the parties discuss renewing for a further period, the documentation will set out who has the rights to buy/sell the electrolyte and on what basis. renegotiation for a further term or for an orderly exit would commence well in advance of the final rental payment, and most docs include a secondary rental payment schedule which commences at expiry of the rental agreement where a reduced rental falls due until everything is either renewed or closed off. we havent seen the docs so its not possible to be more precise.

bought a small initial holding. Have held MKA for a while now, and saw a few articles where both were mentioned so bought here today for a long holding but maybe an outside bet for a takeover. gla

bought in on the dip and managed to catch this rise. holding long. gla

only 25000 shs but it all counts

if you have an isa with say 80k on it you can draw out the balance and return up to 100% of it in the same tax year, so its possible to make a single tfr to an isa of 50k or more provided you have previously had that amount in and had taken it out.

my friend has been told he must increase his margin cover which he cant do, so will he be obliged to reduce his bet

hi, he said margins cover is now 100% whereas before it was under 10%

a friend of mine has told me about a change to IG rules regarding margins, asking me what I think. I havent any details, - does anyone have any factual info?

https://www.crediblecarbon.com/news-and-info/news/glencore-tests-market-for-self-generation-solutions-at-chrome-vanadium-operations/

https://www.sars.gov.za/Tax-Rates/Income-Tax/Pages/Rates%20of%20Tax%20for%20Individuals.aspx

selling 3m shares to pay tax on 7m shares in 2018 makes sense in accord with these tax bands

read the RNS's which will tell you production is on the increase. do a search for vanadium price graph on google to find evidence of rising prices. Be aware this board is full of trolls and rampers because many of them are traders. Evraz is a multi mineral miner quoted in London and elsewhere. BMN in the midst of tenders and rapid change, so communication has dried up pending news. vanadium demand is increasing and will be in supply deficit for years to come. BMN has funding in place and is generating cash from operations, but it will be spending on capex. good luck whatever you decide to do.