RE: Fantastic Drill22 May 2026 17:15
It's the problem for all junior AIM explorers 3.14. It's a challenge that all must overcome to go from explorer to producer, to raise the funding without such heavy dilution as to make it worthless.
The phase 1 development of just part of the resource is $561m at much lower than current zinc price, at spot price I believe that's more like $1B. And that's before the expected major uplift in resource.
There's clearly returns to be made here for interested financing parties against a market cap of $4m. Will future partners likely take a major stake in SKA? Yes certainly but even if we get diluted 4 fold to get there and there's 500m shares in issue then we're still only talking £50m mcap at 10p a share, £75m coming in at 15p a share, many returns from here. And obviously that's a fraction of the NPV so highly conservative if they manage to get back to producing at Kabwe.
There's also Rukwa with coal prices more or less at a three year high - find some way to monetise this asset next would go a long way to unlocking value here.