George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
Hi Panama
Three excellent questions- and as the first has been answered already I’ll have a go at the others.
I don’t think we’re unknown exactly, but I have read that investors down under are used to discoveries under less cover and are slow to pick up on the potential here. Another issue could be that our listing on AIM rules GGP out for some II’s (perhaps until production begins). I’m told that many US investors avoid AIM like the plague. None of which has a bearing on the fundamentals here which just get better and better.
As for Shaun’s delivery - I’m putting it down to the time difference between UK and Oz - probably the middle of the night for him!
Jiggle - I try think you have expressed what a lot of shareholders are feeling. I for one don’t have a clue what is going on with the share price. (I have my suspicions, but I don’t have the expertise to be sure.) Welcome to the Alternative Investment Market!
So I can’t give any advice. But for what it’s worth I will just concentrate on the fundamentals (which keep on improving and I believe are about to improve again I’m the next few weeks.) I don’t have to sell any time soon, and so I will wait as long as it takes unless we start getting bad news (which I do not expect.) Sorry I can’t offer more in the way of an explanation. One opinion I will give - and that is that I don’t believe that Newcrest are the enemy here.
Good to see our fellow posters moved to poetry by recent developments … but we should remember those less fortunate than ourselves as well…
Spare a thought for JTrader as well -
His short isn’t going too well…
He thought 11.7 was a Stairway to Heaven,
But he’s now on a Highway to Hell…
Here we go with your 3-6 posts '1 month old dodge account' you won't last long here, believe me.... Spreading FUD - fear uncertainty and doubt - over the bulk underground, because that's essentially the only unknown left that such disingenuous posts can target.
Last year we had months and months of tecnhical FUD with the GreenTool and others - who said Havieron would never be economic... but here we are 12 months later with a gigantic starter deposit, a $50m decline going in, and $50m GGP cash funding to DFS, and a published phase 1 mine PFS to take to the bank ... so NCM can get ore to Telfer ASAP.
You may be able to confuse and scare the un-researched with your manipulation, but you cannot touch Bamps or me.
For the rest of you MrBig is a skilled and devious operator who last night was attempting to exploit an ostensibly clever argument. The posts were subsequently removed this am. For the correct reasons.
What he/she was trying to do last night was apply NCM's conservative, underground stoping phase 1 mine operational costs @ $84/tonne - actually $81/tonne according to GGP using the correct exchange rate to Bulk Underground production.
The first Stoping operation has naturally has lower volumes, due to the inherent volume limitations of the Stoping technique and higher costs - ore transport to surface limitation, requirement for drill and blast / explosives, and extra material handling, and subsequence labour in back pasting costs )
But you cannot apply this to the anticipated Bulk under ground block caving grades of the larger scale deposit where the cost per tonne would be circa $25-27/tonne
This is a totally and fundamentally inappropriate comparison made by BiggL - It's like comparing two completely different company cost structures, AND specifically designed to imply that anything under 1.5g is likely to be 'uneconomic'...
And It's total BS becuase we ALL know that Cadia is economic down to 0.4g/t Au... specifically due the bulk efficiencies of the operational costs.
And very much like comparing and interweaving the cost structure of building Ferraris directly to Ford Fiestas -
IE both make massive profits, BUT in TOTALLY different ways . Obviously You cannot make a profit building Ford fiestas in the way you build a Ferrari though. That would be loss making.
That's the best analogy I can come up with. And that is the tactic of this poster. Always Happy to smash them into touch.
Expect Multiple shorter accounts with a very obvious agenda.s
Regarding bulk underground : The only question is will this be a block cave or a more selective sub level cave...? Anyone with mining nouse can see that.. The grade in those breccia are nothing short of sensational. And a mine in their own right.
Very sorry to see you go TMT - but glad that you are getting the opportunity to follow your heart. I fully understand why you need to take a step back from the bulletin board but hope you will feel able to drop in now and again to let us know how you are getting on.
Now that is a massive (and very public) statement of intent from Newcrest! I know it’s not exactly been a secret but I am pleasantly surprised to see this before the PFS is released. Can anyone recall if this is an industry first?
I don’t post much myself but I like to think that it’s quality of posts rather than quantity that should determine credibility. There have been some issues here with new posters popping up to push an agenda and then disappearing. That’s why many are sceptical of the accounts with a single post.
Hope this won’t be your last post - we could do with a bit more common sense around here. I don’t pretend to know what the share price is going to do short term, but I suspect the current price is pretty well underpinned by our share of the Havieron asset. If you are looking for more info may I suggest ggphelp.co.uk
I’m sure you’re right Marshall - a lot of long term holders will (like myself ) have shares in a trading account and will want to transfer them into an ISA in the new tax year before the share price (hopefully) rises. As some providers are no longer offering a “bed and ISA” service many will be selling now in order to buy back next week.
Hi PlayMe
You are right - as we are not earning yet the traditional ratios aren't helpful.
Valuation has been the subject of much debate here and I wouldn’t presume to give advice, but it is worth bearing the following 3 points in mind:
1. As we are almost certainly going to mine Havieron as a Joint Venture with Newcrest I’d suggest that using a straightforward “what gold in ground has sold for per ounce” isn’t appropriate.
2. The Maiden Resource Estimate of 4.2 million ounces (gold equivalent) will almost certainly increase significantly over time as it included only the proportion of Havieron which has been drilled sufficiently.
3. Newcrest’s nearby Telfer facility means that we do not need to fund a processing plant meaning that even after paying a tolling fee our costs per ounce for our 25-30% share will be significantly reduced.
You could apply a discounted cash flow to our 30% of projected throughput per annum once production starts, but unless you have a crystal ball to predict gold prices a few years down the line I’d suggest your guess will be as good as anyones…
Sorry not to be more helpful, but wanted to stay objective without speculating.
So many people will have lost money unnecessarily this morning after forgetting or misunderstanding some of the basics:
A) The nature of the Alternative Investment Market and its volatility.
B) The quality of our asset at Havieron which should support a much higher share price long term.
I’d be buying more if I had the spare cash.