Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
Think we are getting a little ahead of ourselves. The timeframe has just been pushed out significantly and this sampling buys them a year to get the smelter sorted. Don’t think the sampling will be profitable and certainly as not as profitable as refining our own ore on site but never the less, costs look likely that they will be cover Keller for the next year
Take this on board and please don’t get me wrong - I am invested in this and have been for the last 2 years or so. Yes we are all disappointed as we all know reeves are the key to growth and sustainability and after today we are no further forward. Yes, there may be some benefit from the T sands but the big play was for the N sands which turned out to be dry. The N sands has been there core development strategy for over a year and this is why I think the markets have reacted the way they have
Don’t think production levels are going to make much difference short term. The markets know what little OIP they have left and know they can get it out the ground. Whether they do this more quickly or not will not change to value of thr Co. Flow tests from the T sands are also unlikely to change to price massively too unless they declare a modest increase in reserves at the same time. Indico and CPO5 are the ones that may get us back into the 18 - 20 p range. Interesting to see what they are going to do with the cash they have if the T sands are not viable and N sand play across the field isn’t the route forward
My guess is that they knew on the 7th Sept there was no N sands Quote from RNS “Since Pintadillo-1 is the first well in this area of Platanillo, the well will be drilled to economic basement, passing through the potential reservoirs M2, U and T sands in order to evaluate their potential and add to the Company's log database.” No mention of the N sands in the last RNS
Looks like someone, possibly in II has been increasing/ taking their / a stake here today with the number of 20,000 trades going through. Hopefully not long until we get an indication of N sands success or not
Don’t think it is unreasonable to expect on update from the board - last one 7 months ago. To build investor confidence annupdate of what they have and haven’t been doing wouldn’t go a miss. Been in here for years - all the way up to double figures and back down. If you look at Bushveld (literally next door) their share prices was flat for a similar period and then off it shot - think 800% in 4/5 months. I’m sure we’ll all have a bit of than..... Keep the faith
Certainly don’t think the results will get Rex out - he has 34m shares still - this will take weeks if not months
Not sure how far product is off as there is zero communication from the BOD 7 months ago the RNS said “The Company is now in a position to timeously begin the site establishment and civil engineering works in preparation for the commencement of mining activities” Has this started or are they sitting with their hands waiting for better weather? Disappointing from the bod
I am as keen for this to be 41p or even 30p but we on AiM few are baked on a PE basis. Agree the the cash balance should look good and profitability numbers far superior than the last few years. My point is that we are depleting oourproven reserves at the rate of 2m pa. if in 5 years time we we still making the same profit and have not added any reserves would you expect the basis of valuation to be the same on the basis we only have a few years of oil extraction left. I know they will drill and should add to the P1 reserves but the point is how the company is valued. If it was suck a bargain buy at the moment why don’t the growth bias fund managers jump in - they are not bothered about daily / weekly fluctuations - they are investing purely as a “growth” play. Maybe another way to look it is the value of a PPI claims business. Last year making massive profits - would they be valued on a PE basis knowing they their income is likely to stop itotally next year unless they move into different areas. I am not being negative - I have 400k of shares in here with an average of 18.4p. I want them to succeed as much as everyone else but the catelidt for me is solely the results of the drill bit when they eventually get it turning. Maybe the Lower monthly production is being controlled to retain their reserves as much as possible - just a thought
Borteddesigner - there has been a lot of change - we have extracted the oil and sold it but not drilled snogging so have not replaced the reserves with anything (as yet). Additionally, we have little to show for the money we have generated apart from handsome remuneration for our BOD and execs. The rest may have fallen back down the hole where the oil came from. In all seriousness the value of AMER will only improve when they are in a position to add new P1 and p2 reserves. Cash balance should hopefully show healthy in accounts but unless it is used for a meaningful purpose it is going to have minimal affect on our long term value
Wish it was 15p as that’s a 15%! rise from where we are !!! 40p and most of us should be in profit
I cannot for one minute see a takeover and if one were to come it would be low ball IMO. Why would someone pay top dollar for potential when they can simply go out there and by the same (blocks) for prospecting. As the moment AMER is monetising it’s assets without adding any new assets (proven reserves) to its balance sheet. Any real value will only be added to the share prices and/or hostile takeover when (1) we start drilling (2) we bank reserves and (3) the Bod can demonstrate they can meet / manage investor expectations. Anyone remember when the drill bit last turned on a new well or when we last added to our reserves?
Agree but where are we going to get 9000 bopd? We seem to be producing less and less as the months go by. I have a garage for 2 cars but there is little point when I only have 1 !