The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
There is an alternative to coal in steel production. There are coal free steel works around the world already..... just not very many....
But
There are still coal fired ones being built in the world and it will be decades to phase out the existing plants so I wouldn't be too worried about sticking more money in Ben's Creek.
Bizzy,
The Manica revenue does more than its numerical value to the company, because it facilitates adding value through exploration without the normal risk of dilution that we have from most explorers.
Utilising the NPV value to the company sets a minimum, as long as the money is being employed in good exploration....
So I think it is good to use it to demonstrate company value.
Nobody has shown it isn't economical (and the most recent interview Colin says they already know they have Decision to Mine). What has been demonstrated is that a proportion of the resource isn't due to the outcomes of the drilling but due to the shifted cut-off.
The only way forward for Xtract is the direction they are going..... publish the mining plan when they receive it and start the negotiation with AA ir wider market.
The only deviation (imo) that this discussion warrants would be a technical presentation with the team...... thats if they want to address the shareprice being below current asset value.... as that dip has been related to Bushranger and more specifically, non expert interpretation of Racecourse results published to date.
To quote Yazz...... the only way is up baby
If the mine has to target just the higher grade crown and has to achieve a reasonable NPV by the time that is processed, I think the plant size would need to reduce to reduce CAPEX....
I respect Steve and his posts (also can't argue with his day job), but I would like to see the economic model too...
I do agree Andrew, but I think this level of impact from Steve's info warrants an official response from the company..... and not just an interview.
An RNS'd clarification ..... if not a full rebuttal....
And a clear timeframe for the delivery of the study.
LW,
You re missing my point. I don't forsee us retaining 20%... for me it is going to be a complete sale . I'm just puzzled when people say, where are we going to get the money to fund 20% of the CAPEX?..... we will have just been paid for the other 80%, our MC would be high enough to raise easily and as the CAPEX will be against plant we would be able to raise through debt as well.......
Colin has made so much noise about not doing a JV for this, so this is just an academic discussion. I quite like the idea of that 20% being converted into a royalty stream as it would be a good longer term underpinning of the shareprice once we have had a special dividend and the company is back to exploring.....
If we sold the 80% to AA for 200million we would then have the funds to pay our share of 1billion CAPEX.... not sure what I'm missing here.
But it is academic as I think it will be a total sale 100%.
Spot on Matty.... but its a bit of finger in the air stuff when using %value in ground.... so best just used as indicative.... until the NPV figures are available.
It's been debated on here a lot.
Exactly..... 2% of in ground value is nearly $180Million ..... which in itself is a tidy amount (if not quite the $400million I was hoping for).... and with the higher grade mineralisation being within the first 200 to 250m of surface this has a high chance of a sale.
If you want to challenge the negative rhetoric that the under target resource has caused, get the mining study accelerated to as early as you can next year.
Best way to challenge the opposing view..... is to prove it wrong.
GLA
It would look that way...... standing in the street at high noon though, you never know what deals are going on in back room of the saloon.
You gotta ask yourself one question...... do you feel lucky? Well.... do ya?
Kully,
Why so fixated with Colin Bird? I'm a 'dual holder' and I find it amazing how many times his name is mentioned on ARCM..... for the record.... im still in profit at XTR and underwater here at ARCM.
Just don't know why he gets so much exposure on this chatroom.
I agree Bushranger has been stated as having multiple targets identified by the scans.... but yesterday's mineral resource was Racecourse. And it is just a big pit.
I'm annoyed by how far off 2MT we ended up, but from here there is most likely many multiples of value to be added to the shareprice....of which we won't really know the details until the mining study is complete.
The copper isn't going anywhere and the large amount 0.5 to 0.6% at 100to 200m below ground will drive the NPV calculation.
I definitely don't see any sense in selling that news at a loss, which many people must be doing. At this price 2.5p I'm back down to break even but with the knowledge that Manica alone is worth 3.5p.....
I hope the sellers find something worthwhile to put the money into but I still think good profit will be nailed on here.
Good luck
Hostile takeover at a low shareprice? Are we on the same planet? 3% of shares traded (mostly sold) over the past 2 days drops the shareprice 20%...... if some started buying 51%......... wtf do you think the shareprice would do?
Scattered resource.... lol...I love it when a deramper adds in a comment that looks like they are holding the baby the wrong way up.
The last thing you could call Racecourse is scattered...... it is literally a single pit..... doh!