Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
Interesting article published yesterday. Figures taken from World Bank, which have been cited on this board a few days ago.
https://tinyurl.com/ya47eugf
https://investingnews.com/daily/resource-investing/battery-metals-investing/graphite-investing/graphite-supply-needs-increase/
I can see car manufacturers having direct offtake aggrements / supply deals in place with mining companies for key raw materials, such as graphite, to ensure supply security in the growing electric car vehicle market.
The World Bank reports demand for battery metals is set to jump 500% by 2050, graphite in the top 3 by % increase.
12 May 2020
Armadale Capital Plc (‘Armadale’ or ‘the Company’)
Updated Mine Plan Materially Increases Production
Armadale Capital plc (LON: ACP), the AIM quoted investment group focused on natural resource projects in Africa, is pleased to provide details of further improvements to the Mine Schedule for the Mahenge Liandu Graphite Project (‘Mahenge’ or ‘the Project’) in south-east Tanzania, which was completed by experienced graphite specialists BatteryLimits. Following completion of an updated Mine Schedule using a higher-grade cut off of 9% TGC and a higher strip ratio of 1.95:1, and a revised expansion schedule, the Company is pleased to announce an increased production profile, increasing the average annual output to 109ktpa of concentrate over life of mine, which is a 30% increase on the recently completed Definitive Feasibility Study (‘DFS’).
Highlights
• Completion of an updated Mine Schedule using a higher-grade cut off of 9% Total Graphitic Carbon (‘TGC’), a higher strip ratio of 1.95:1, revised expansion schedule and includes a proportion of high-grade Inferred material
• 30% increase in average annual production of large flake high-purity graphite to 109ktpa compared to recently completed DFS
• Higher overall production from increased cut off of 9% TGC will materially increase annual production and has potential to significantly increase the US$358 million project NPV with minimal impact on the capex
• A higher-grade cut off is expected to allow the Company to maximise initial production and build lower grade stockpiles in subsequent years
• Updated Feasibility Study based on updated Mine Schedule anticipated by the end of May
• Production profile planned to take advantage of increasing demand for graphite as the Electric Vehicle market rapidly expands
Armadale Chairman, Nick Johansen, commented: “The updated mine schedule demonstrates the exceptional potential of the Mahenge Liandu Graphite Project. The use of a higher-grade cut off and mining of a higher-grade material at an increased pace leaves significant scope for the Project to produce higher volumes of graphite over the 15 year mine life at a higher EBITDA margin, thus enhancing its overall near-term upside.
“The Project has a relatively long life of mine, low cost of production and has now been significantly de-risked at a time of rapidly increasing demand for large-flake graphite. As such it represents an attractive opportunity for investors who wish to gain exposure at a crucial inflection point in its development.
“The detail from the recently completed Mine Schedule desktop studies is in the process of being worked into an upgraded Definitive Feasibility Study, which will be based upon a throughput of higher-grade material over a 15 year mine life, and we are expecting that it will have a significant impact on the results.
“In addition to this work, multiple workstreams are currently in progress including continued Detailed De
https://tinyurl.com/y782l2ea
Monday, 11th May 2020, 10:55 am
Union launches campaign to save almost 100 jobs under threat at Falkirk concrete firm
Unite Scotland has stepped in to try and stop Falkirk landscaping and concrete company Marshalls laying off almost 100 employees
Monday, 11th May 2020, 10:55 am
According to the union, the firm recently announced around 95 job losses at its Dollar Industrial Estate site, with production set to move to other sites in the UK.
In response Unite has launched a campaign highlighting several cost-saving measures which could improve the viability of the plant post-COVID-19.
The workforce is currently furloughed under the government’s Coronavirus Job Retention Scheme, but despite the financial assistance the company has opened a consultation on the redundancies.
Unite the union has launched a campaign to try and save almost 100 jobs at Marshalls' Dollar Industrial Estate site
Unite the union has launched a campaign to try and save almost 100 jobs at Marshalls' Dollar Industrial Estate site Copyright: JPIMedia
As part of its campaign, the trade union has also targeted local politicians and the Scottish Government for support to retain the jobs in Falkirk.
Unite industrial officer Scott Foley said: “The decision by Marshalls to announce 95 redundancies will have a major impact on the local economy including the supply chain. Despite stating publicly their concerns over the financial impact the Coronavirus pandemic has had on the company, the directors have still found the time to award themselves inflated bonuses and enhanced remuneration packages.“We believe this decision is needless and premature. Unite has launched a campaign to retain the jobs in Falkirk and we will leave no stone unturned. We ask the local community and politicians to support the workers and together do all we can to get Marshalls to change their minds.”
Marshalls PLC, which employs 2000 people throughout the UK, is a leading manufacturer of innovative hard landscaping products and operates quarries and manufacturing sites throughout the UK.
It stated its Falkirk site had been greatly affected by the COVID-19 lockdown.
A Marshalls spokesperson said: “The economic impact of COVID-19 has been widely felt and is expected to reduce the demand for our products in 2020 and 2021 compared to last year.
Mashalls is now in consultation with employees over redundancy proposals
“Consequently, like many other companies in the UK, we need to make adjustments so that our business is more sustainable to reflect the lower level of activity than we had originally planned before the outbreak of the COVID-19 pandemic.
“Regrettably, we have therefore started to consult on a redundancy proposal. We are actively briefing the affected team members to ensure that they are supported through this process.”
http://tiny.cc/tb1uoz
Yes, I've read it. Tried to post a shortened link above.
ACP love releasing a intraday RNS, so update DFS could land anytime. Project financing and off take aggreements soon after that.
Found this old but interesting tweet discussing ACP and comparing to Walkabout resources when through a rerate up to £80 million Mcap - resource, permitting DFS, binding off take.
And Walkabout were £20 mill Mcap before the DFS was completed.
https://twitter.com/TheMoneySponge/status/1173958216247631873
Useful background to the fundamentals with the author clearly sharing the current sentiment that in essence ACP is seriously undervalued and a rerate is coming.
https://miningmaven.com/company-news/59-armadale-capital/1037-are-investors-missing-a-massive-buy-at-armadale-capital-as-dfs-confirms-its-project-s-world-class-potential-acp
“We were the first sector to be shut down by the government and therefore it stands to reason that we may be one of the last to reopen,” says Rob Pitcher, chief executive of Manchester-based Revolution Bars, a nationwide chain aimed at 18- to 30-year-olds. “Opening with any sort of social distancing is very problematic. We would rather stay closed for slightly longer and be able to open with far less restrictions.”.....
.... The grim outlook has weighed heavily on Revolution. It’s share price has collapsed nearly 80% to 20p since January. It has furloughed 98% of its staff but is still bleeding £1.6m a month, mostly rent payments on its 74 bars’.
.... For the time being Revolution’s “best estimate” is that its bars might be up and running by late summer. Until the lockdown the chain served 100,000 customers on an average Saturday night and Pitcher reckons they will be keen to come back. “We are well aware,” he says, “they will be desperate for a night out when the time comes.”
https://www.theguardian.com/business/2020/may/02/can-the-uks-night-time-economy-survive-the-coronavirus-pandemic
Interesting comment today from Simon Emeny - boss at Fullers, which operates 400 pubs around the country in response to proposed guidelines for businesses to reopen.
'Simon Emeny, the boss of Fullers, which operates 400 pubs and restaurants, has told the BBC that reopening under social distancing rules would be worse than staying closed.
"Think of the practical problems of going to the loo, being served at the bar, a plate of food at your table. Also few people would want to come," he said.
"It would mean our revenue would be down by as much as 80%, but our costs would go up, so it's actually more catastrophic to open under socially distant guidelines than it is being closed down."
That's the concern for me because social distancing is likely to remain for some time after businesses reopen. So there will be huge practical challenges for any bars/pubs/restaurants to try and generate anywhere near the same turnover pre COVID-19.
https://www.bbc.com/news/business-52496636
and discussions in full swing with JV partners and investors.
"With extremely low running costs, these funds, together with our existing loan facility, put the Company in a solid financial position prior to the intended conclusion of project financing for mine construction, where we are already in discussion with a number of potential joint-venture partners and strategic investors.
“In readiness for this, work is already well underway upon the more detailed modelling of the Mahenge Liandu higher-grade zones ahead of an updated and optimised DFS and we look forward to delivering this in the near-term as well as updating on progress of existing MOU offtake agreements converting to more binding offtake agreements or partnerships. With a steady stream of news flow ahead, we look forward to updating the market with regularity.”
Apologies if this has already been posted on the board earlier in the month.
https://miningmaven.com/company-news/59-armadale-capital/1037-are-investors-missing-a-massive-buy-at-armadale-capital-as-dfs-confirms-its-project-s-world-class-potential-acp
I've been invested in ACP for over several years now - frustrating at first but my confidence right now has never been higher. Plenty going on behind the scences as they clearly know the huge value in this project and how they are going to deliver it.
Definitely going to top up as a rerate is coming.