RE: AGM28 Jul 2023 21:11
My notes and thoughts from today's AGM, happy to be challenge corrected by other attendees
Vote
CB really emphasised and ensured that everyone in the room understood that the directors have if the vote passes the power to issue shares. His emphasis on this very much made me feel as if a placing is going to happen.
Bushranger
CB very open that he's disappointed with BR, and made the comment that the grade fell a bit short.
There are other Ore sorting technologies which might be better for BR, but the Tomra stuff is good enough to update the economic model with for now.
The updated economic model will focus on the high-grade material in BR and then look to make use of Ore sorting after this high grade is depleted. He mentioned that the pre concentration gets the grade to where it needs to be
He spoke about 2 million tonnes, but to be honest I lost interest at this point...I asked him about the decision to mine (DTM) and he basically said this would be tricky to prove to AA that they have taken the DTM and would likely end in court. As such he intends to negotiate an exit from the AA Claus, e.g. give them a royalty etc. Clearly a little concerning if AA don't play ball.
The study should be available September-October but made the point that he has been let down by forecasts from consultants before. It's also important to note that this won't be the final model and will go through numerous optimisations.
He did make a comment that he's still confident off getting back what's been spent and more, suggesting to me he values BR in the £10-20m range (I think it's safe to say he would snap AAs hands off if they offered 10p)
Manica
Currently in the 65-70kg range (dry season), with grade around 1.7-1.75/ton.
Should be around 500-600k a month profit (USD) at current prices etc
Recent report received gives a mine life of 4 years for the oxides, however CB stated they are using 2/2.5 (guy in the crowd who is working for XTR agreed with 2/2.5). Reason for the difference was the Ore body doesn't behave as you think always.
Plant modification/additional plant - if XTR don't put any capex in they will stick with current agreement e.g. a 23% share, however if they pay a share of capex this share will be increased. He mentioned March 2024 for the next stage decisions/orders etc so I would hope to get an RNS on the details in the next 6 months or so.
Talk about building the new plant on the resource to avoid trucking etc (I only half heard this so happy for others to correct add to this)
As we know from the original MMP deal any exploration will be a 50/50 deal with MMP, however if MMP don’t participate in the drilling this goes to 77% XTR
Kakuyu
Had a bit of production already, very small scale
To get too proper production need a plant, costing around 1.25m which would require 4/5 years of material. They are currently planning which should take 6-8 months so we should hear some news early in the