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Spot on Andrew..... I was expecting all Racecourse drilling and results completed and the model issued by end of May and into June..... so a little disappointed with that. You were right again to be skeptical ..... I bought into the May/June date completely
It's speculation but I do think the last 2 holes, used as the reason for continuing RC exploration a little longer is a stalling tactic to let Ascot definition reach a more appropriate point..... although the shallow holes proposed to improve the projected early cashflow are obviously prudent.
What we could do with now is a map and plan of drilling locations but for some reason issuing this type of info has become less frequent.
Good financials confirmed..... with the numbers in line with those suggested by DCat.
Production looks like it will be next year though. I think the suggestion that it too early to say that it won't be this year is because they are awaiting the updated TiO2 results.
I think good results on TiO2 will mean pushing on with the larger project instead of starting with the smaller trial iron process..... so production won't be until 2023..
What are people's thoughts? I think the results are positive.
Jamesiecake,
My own NPV calc, based upon 5million USD profit this year, 10million profit 2023 followed by a 3% increase year on year until 2027, but adding in the following factors.
5% inflation
8% Discounted Rate
Gives an NPV of 39million USD
And share price contribution around 3.2p at todays USD/GBP exchange rate.... so roughly in line with your numbers.
42 in ASCII code is the quick command equivalent of * or 'wildcard' in a search parameter..... a Douglas Adams fan would suggest its the answer to the question of Life, the Universe..... and Everything.....it could be our winning bingo number.
That's the thing lacking.... financial projections on any of these opportunities. The companies they are working with must have their own product sales projections that they used to sell the ideas internally.... at some point it must be appropriate for Versarien to communicate that to shareholders.
I think it was towards the end of the article where they suggested that this could open up the possibility of sodium sulphur technology.... which would of course be bad for lithium.... however sounds like very early concept/testing so years before commercialisation.
You are right Lucky, no guarantees of money spent being value added. Point I was trying to make was that the value killer in AIM is the threat of dilution. With the Manica money that threat goes away..... plus the exploration pace increases at other locations such as Eureka.
Jamesiescakes....I understand putting the DFS costs into the spreadsheet if it was paid for out of debt that we now hold on account, but was this not paid for by shareholders and dilution at the time? In that case you leave it out. Otherwise shareholders are paying for it twice. Once when they bought the shares and secondly through a lower NPV value.
If you remove all CAPEX, add 8% discounting but also increased Revenue and cost of production by 3 or 4% each year that would be more realistic.
Bizzy, I cant see us directly benefitting from the Fairbride money (in terms of say dividend payments).... but we will have a war chest to support exploration without dilution....that will support the share price more than anything.
I dont see why this has dropped. Q1 are always lower numbers. I'm not too bothered on the wording of the statement on Fairbride either.
It would be an opportunity to now start adding more Fairbride pictures to the website. The videos of the mill turning..... dirt being added to the plant....gold evidenced on the shaker..... and personally I think it would be good to repeat the photo opportunity from first Alluvials production. Namely pictures of the early Dory bars and Colin holding them.
Also modifying the project synopsis on the website to show visitors to the website that this is now in the production phase.
Market response is very difficult to fathom here. Having just dipped my toe at the start of this week.... these couldn't have been better first & second RNSs for me.
..... with copper being the Apex commodity due to electrification revolution..... its the one that is needed in all from production/generation/transmission/storage/end user(eg EVs).
We are in the right space to take advantage imo
They do state them in that pdf (Gf, BE, DL), so maybe a little disingenuous to suggest there are 3 that they are looking at (since only DL isn't already being worked).
Looks like I'm wrong in expecting 3 new ones.... I'll get back in my box .....lol.
Ant, I don't disagree with any of the information you state and btw that is an excellent summary at an ideal time for everyone here. I.e. we are going to be getting quite complicated quarterly revenue reports going forward and I doubt most of us will be able to decipher them.
My point about the 3 areas referred to by Empress is that they talked about 3 areas that they were looking at with MMP. I dont think they would say that if they were talking about 2 of tge areas being worked by other contractors.
Add that to Colins statements about their being so many things to look into at Manica with nobody fully understanding the geology of the area and their agreement with MMP to explore more sites to identify more feedstock for their new plant.
I'm sticking to my "hope" that Empress were referring to 3 areas not yet stated.... and my hope that they are on the XTR licence .
Exciting times .....
He stated the lower grade dirt that is being processed first to "fill the nooks and crannies" in the equipment was identified as they stripped back Fairbride to start building a stockpile of feedstock. So it won't be from Guy Fawkes or Boa Esperanza..... they are both being worked under a separate contract by different contractors anyway. I cant see how they can now start feeding the MMP plant.
I'm hoping the 3 areas of interest are 3 new areas