Member Info for Joeman1

I'm sorry, Colin's reticence at giving a project timescale isn't relly acceptable.

Perhaps at this point if there are still financials under discussion (and they obviously can't take the deeds of the processing plant and start cutting it up until they have the cash) then it would be wrong to give a date.....

but they should be able to say.... this is a 6 month or a 9 month project once the financing/prmitting gate has been passed.

Did they not say that long lead items were on order for either the mine or the processing plant repurposing? (I note you reported that they said the ore sorter had been purchased).

Dan,

If the Rio idea has merit, it can't progress until Rio get rid of their Chinese investor. They are still working on this.

But you are right, they could start buying at these low levels .... remember they have only just accepted Serbia isn't happening... so maybe too early.

Just a suggestion.

What about this for a take out scenario.

Rio Tinto want a Lithium project in Europe, failed attempt in Serbia.

They are divesting to get rid of their Chinese state owned investor so they are not frozen out of subsidised projects.

What if they make a play for our 49%?

CEZ would likely be happy with the mining expertise coming on board.... we just need to be in a position to get best value. So DFS and paperwork up to date as a minimum. Plus shareprice well north of here.

Thoughts anyone? Plausible?

Yes.... it is claimed the flowsheet is simple. But if it hasn't been scaled up yet on this application there is a technical risk. There are all manner of process plant around the world that are maybe 2 or 3 times the size of an existing commercial plant that fails to make the grades or nameplate capacities.

If you are going straight from a lab or bench scale test of process flow sheet to your full scale plant it is a risk. This is why I read their publications from 2022 as including a pilot scale operation as part of FEED and I'm happy about this.

I bet you go back through the history for PREM (for example) and you will find statements like 'simple process flowsheet', 'industry standard unit operations', 'well understood processes'...... and the rest is history....

I'm not saying EMH have a problem, in fact I'm suggesting that they will perform the right steps. I am saying it is one of the risks I have noted.... along with being bought out at too low a price.

The flowsheet has been shown to achieve the quality, however there is always a scale up risk. I cant recall any pilot plant proving having been done (correct me if im wrong), but the EMH project goals (as stated in slides from back in 2022) state that the FEED process will include production of products for marketing purposes.

I'm reading that as a recognition that FEED will be benefitting from a pilot programme that produces representative products

Fingers,

Most of the grant monies are available on a percentage of matched spend. Plus, what are the real chances that one project gets all of these?

So id say it's very unlikely that EMH won't need to raise to meet a proportion of the CAPEX. Otherwise its likely we would lose a portion of our stake in the project.

Plus, to achieve good terms on credit, the creditors like to see shareholder participation, in addition to being guaranteed against the asset.

A good recent European example was Adriatic ADT1 (now taken over by Dundee). Their final funding package for the project included off takers, debt and dilution.

The dilution was limited by being carried out when the shareprice was a good way up the Lassonde curve and was mostly institutional at that point.

I'm jealous..... not of your entry price as its around my average anyway..... but jealous that you haven't experienced the many deferred DFS dates.

This time it's nailed on.

Expected to be unboxed March 2026 I think Colin suggested..... so I'd guess its been paid for (or at least significantly so).

Lots of buying pressure. Can anyone see the L2, give us a hint as to what is left before it moves up again?

To be 10% up when only 1% of the market is blue is a massive positive here.

Anyway.... we are blue when only 1% of the London Market is (99% red 😱).

That has to be a massive positive here.

From recent interviews and previous RNS, I think we can expect/hope for the following news flow.

Trench assay results – Expected Now

Completion of 1,800m drilling – Mid Dec

Drill assay results – Jan 2026

JORC resource upgrade (~350 koz target) – Feb 2026

Preliminary Assessment / PEA – By March 2026

Https://www.bbc.co.uk/news/articles/c051y3d7myzo

KS in Anglesey today announcing new SMRs. Rolls Royce involvement specifically stated....

I dont believe there is a contract/agreement that says Sovereign have to wait to issue the DFS if Rio ask them to.

IMO if we are delayed because of the Rio divestment from the Titanium business, this is a handshake so that Rio can maximise the value of its Titanium business in the transfer. Why would we agree to this? I can only think that it points to SVML management preferring the sale over developing themselves.

Happy to be persuaded otherwise..... but at least I'll make money both outcomes.

Roughly half the time for a greenfield project..... How long is a piece of string 🤔.

I think 12 months is a reasonable estimate but I'd like them to profer a timescale once they have contracts in place and deliveries confirmed on long lead items.

They should be able to communicate progress regular so it won't be a quiet 12 months.....

Sapan,

Come on mate, where is the resource update? We know you have delayed the DFS (but we are not sure/currently speculating of the reason).

If the resource update doesn't come for a month we will know this delay has been deliberate and not due to work streams not quite ready yet.

Days not Weeks

If I owned a car showroom (hello John gotta new mottah?), I'd take that deal in a heartbeat.... 50% profit on your entire stock.

I'd be straight out to the auctions with the original stake, pay the overhead for the business for an extended period, nice new coffee machine for the office and a new executive chair with lumber support (I'm not getting and younger).

And I'd ask the buyer where he/she found out about Honest Joe's motors and increase the advertising in that area.

This time next year Rodders..... this time next year.

Howard,

I'd read that Rio were encountering governance issues due to one of their significant shareholders being a state owned Chinese mining company.

So they may spin out some of these non-core operations in a deal to swap shares out from the problem shareholding.

That said, it was only one report and I cant vouch for its truthfulness or accuracy, so Rio might just be freeing up capital to spend on core parts of the business like you say.

Key question for me is, how would Rio maximise the value of their position in SVML IF they are putting it on the table. That was where my musing came from.

For us SVML has got to this position in a faster and more professional manner (optimised PFS, improving MRE, consulted with government on national mining code, high levels of local interaction..... etc) with the help of top tier miner Rio Tinto. So even if the first offer is from a Chinese miner instead of Rio, the fair value offer is likely to be much better than it might have been.

I'm still just speculating here though.

Hi Spuddy,

It's only my opinion, but I think Rio will see 2 specific areas of value associated with SVML.

1. The value of the @19% share holding itself

2. The value associated with being able to buy the whole thing at a fair value without the risk of getting into a bidding war.

If Rio do include their SVML holding in the payoff of their Chinese investors then I think they would try to maximise the value attributed to that.

After Rio completes the sale, as long as it is still within the terms (90 days after DFS but with option for 90day extention), then surely the Chinese owners of Rios previous interest in SVML would CONSIDER making a fair value offer? If they decided not to, then it's back to self development or sale on the open market.

Happy to hear other interpretations but I think the above is credible.