If it helps, Exxon and chevron are big operators of Kazakhstans oil fields, which ship oil to the UK among others and they seem to be doing ok. Warren buffet has recently bought a big stake in Exxon so I'm assuming Kazakhstan passed Berkshire hathaways due diligence for political risk, even if it's only 10% of Exxon, you'd think he would wait if he thought it would be a problem or would have invested elsewhere.
"Why your comparing cash cost is beyond me, your comparing raisins to apples!"
It's for the vanadium deposit, not the processing plant! You don't seem to care where projects sit between eachother on a cost curve.
"You are going to need 100s yes 100s of millions of dollars to get to production, you still need to do PFS, DFS, and then BFS. This cost alone 10s millions."
You read up on current production, kudos to you, but if you read up on how the feasability study is being progressed then you would know this is not the case as funding should be sought back half of next year if timelines are kept and the mine is going to be built incrementally via. cashflow producing modules, so no funding needed won't be 100s of M$. If you think that is wrong then perhaps you should be on the competent persons report, then you would have some credibility and not be seen as just another troll attempting a beatdown on something your obviously not invested in, with nothing constructive to add.
You need to open a free account. Main point says they expect the heron 1 well to be bought on stream as the equipment and crew is 'expected to already be' in country to do that, but for the 2 new wells, rig and crew are in China;
In order to execute its planned Heron programme, Petro Matad needs to engage the full services required for the programme, agree oil offtake with nearby producer Petro China, and secure all required clearances.
In terms of the required services, the equipment and crew for bringing Heron-1 onstream is expected to already be available in country, making this relatively straightforward for Petro Matad to engage. For the two new wells, a rig and crew will need to be brought in from China. Stringent China coronavirus restrictions have been hampering efforts here in recent months, but these are now beginning to be eased, increasing the likelihood that Petro Matad may have access to these services within the 2022 drilling window too.
In terms of offtake with Petro China, earlier this year Petro Matad agreed this in principle with the Mongolian regulator, and is in discussions around specifics with Petro China (an MOU is already in place between the two parties). This process has recently moved forward with the reopening of one of the two oil export routes into China as coronavirus restrictions have eased, auguring well for an agreement with Petro China to be reached and oil offtake capacity to be available later this year for Petro Matad, in our view.
Continued on next page/
https://research.arden-partners.com//view_repos/_eb301131-475e-4a60-8f7a-e10f84386502.pdf
Looked BMN this morning as it seems FAR has been recently following it down. As stated in the RNS about capital developement, for 150M$ can increase production by 50% and reduce costs by 20% to around the 22$ per kg mark for ferro vanadium.
So, it's a competent persons report but at 2.40$/lb for V205, FAR could make 5.28$ per kg (before byproducts), so for less money and using current spot pricing we have a cash cost of 1/4 the sales price vs just under 2/3 at BMN.
So, with the coming production glut in the vanadium market from all the projects around (Vanadium is more common than copper) and cost inflations due to higher energy expense I see only the cheapest producers are either going to remain solvent or get project funding.
In my view, in the short term this could drop back to placing price, leaving me quite underwater and feeling I bought too early, but medium term, now the company should have the money coming in to fund all the test work etc. and start looking pretty compelling again after the coming recession because steel demand should pick back up me thinks.........
Plenty of time to invest in rockhopper as I expect navitas will wait to see revenue from their Canadian field before investing in the Falklands but has just done a capital raise with shareholders able to participate and get some warrants ....
Can't remember where exactly I heard about the nickel processing plant, think was mentioned in the proactive investors interview.
Nickel processing facility commences production in September, from the last report it looked like they spent more on inventory they didn't process which I expect, whether it's due to transitory constraints or a build up of inventory, should add to revenues. Also, for me, I think the overall profitability should come through next year as there should be a balance with inventories and material in transit, as well as full production. Then we shall see how close to 10M$ fcf we get.
Having taken an initial position at 25p I did average down thinking 17.5p was too cheap, but have an average of, I think 20 now.
I am of the opinion that the cheapest producer with one of the largest resources of a commodity should come with a decent premium one day, so in a low inflation environment, given the jurastiction I could see the C/350M$ fcf yielding 4-5% given the LOM but that's my 'upside' scenario.
Farmout of akrokeri? Takeover bid? Government is in risk of default but would think they would continue to increase taxes if anything there .....
Feels very contrarian being invested here. Anyway, here's some food for thought; https://uk.finance.yahoo.com/quote/LGO?p=LGO&.tsrc=fin-srch
Largo, the worlds highest grade magnetite vanadium producer making in excess of 10k tons a year is raising operating costs from $3.20-$4.20 to $3.90-$4.30 for the remainder of the year due to cost inflations and a strong Brazillian dollar.
Some angry protester was on the bbc news outside a polling station and saying that the whole voting system was a scam or something. Russia was also mentioned as something of a 'saviour' of the Kaz Govt.
The BBC is an independantly funded, trusted media outlet and it's news is full of balanced and unbiased content. Here is the other side of the stick here if you care to read it and don't think the website should be banned;
https://www.euractiv.com/section/central-asia/news/kazakhstans-constitutional-referendum-explained/
Don't worry, I have emailed the company on the off chance they need the £2M and have suggested a rights issue at market price. I'd be happy to have an extra c/8% of shares if it means those ticket touts the broker organizes doesn't get them first and if it means we get some extra drilling done this year.
BREAKING: Petro Matad fails to raise £2 million, placing aborted
By Tom Winnifrith | Wednesday 25 May 2022 Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from *************). I have no business relationship with any company whose stock is mentioned in this article. Oh dear, oh dear, we really must be in a bear market. Last July Petro Matad (MATD) raised $10million at 3.5p…
A month ago Petro’s shares were 4.4p mid. Today they are back below the placing price at 3.25p mid. The reason: I can reveal that last week Petro tried to get a placing away at, I am told by a reliable City source, sub 3p. to raise just £2million and it failed.
Why try to raise so much less than last time? Indeed what is the need for cash? Surely not all of the ten million bucks has been spunked already! Questions, questions.
Down from an 184p peak 11 years ago,from18.75p five years ago and 8p 1 year ago, I suggest that- whatever the FCA says – past performance usually IS a good guide to the future and, as such, there is no reason at all to take this off one’s bargepole list.
Seems nuts, website seems interesting over all but you can't help but feel the authors follow a formula of trust gaining through 'exposing' the most vogue small-caps and then promote their 'picks'.
Watched Matd jump 13% Tuesday off of a 100k trade that got sold into, so at a guess, either matd wants a bit of extra cash for velociraptor ( rights issue would be nice) meaning some drilling is at least going to happen this year, or somebody with a lot of money to put in wants cheap shares.....
https://www.worldoil.com/news/2022/2/3/shell-nigeria-oil-field-sale-draws-bids-from-four-local-firms/
I would speculate that if the deal falls through then seplat would be able to at least afford another .....
Funny thing is, in the AGM a shareholder asked about the acquisition and was told the deal is still going ahead and is expected to close in h2, being the day before the news article and being the recipient of one of the letters from the petroleum industry, even though he didn't go into great detail, I just don't think he was lying. I honestly think, whatever happens, that the management here think they can still pull off the deal and indeed other deals. Note that another major wants to sell its deep water Nigerian assets and is also looking for a buyer.
Was looking at the price history of gold today;
https://tradingeconomics.com/commodity/gold
On the 25 year chart, can see the sell of in 2008 was short and sharp, as in 2020 before the rebounds. Low interest with low inflation seems to have been quite bearish and current term usd strength with rising bond yields seem a bit worrying. My guess is that after most economies will see their gdp's expand again in the summer, a sharp contraction shall follow caused by a cost of living crisis, causing dovish global banking policies again and a rise in the gold price above 2000$. Either that or higher interest rates persist with the inflation, keeping the usd as safe haven and gold drops to 1600 range. Then earnings after tax and admin would only be 4.5M @ 24k ozs, 1100aisc post near term expansion!
I don't know omi but wsbn is currently drilling what they think could be a polymetalic silver lead target that has some previous results backing it up. Later in the year they will be drilling a target similar to haverion, ggp's asset which is what everybody was excited about. If you want to see a quick multiple return then yes, a company like wsbn is a good speculative bet, even though wsbn has multi bagged already, can still do it again on some decent drill results. Will be a long time before gcat spikes to multiples of 0.8p. You may want to rethink why you hold here.....