Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
When looking at the HZM SP and wondering about the extent that the AMC SP is likely to mirror it in the future, we should bear in mind that over a period of time and for various reasons three institutional investors sold out and this was a massive drag on the sp. When I first invested in HZM I was influenced by their claims that they had "strong institutional support" which indeed they did and in all fairness still do but this looked even better than it does now until three of them sold.
I am trying to understand the project.Looking at the NRR website under the heading "Development Plan" there is mention of stage 1 involving up to 5 years direct shipping of ore at a grade of 60% fe. We then have stage 2 where a concentrate is produced at an average grade of 62% fe having spent at the 2010 estimate over 1 billion dollars to build the flotation plant etc. Am I fight in assuming that construction of the plant is mandatory because after 5 years or thereabouts the ore grade available is such as to be uneconomical for direct shipping and is dependent on processing to a concentrate? This being the case there will not be a steady ramp up to 5mtpa because this level of production is dependent on the flotation plant being in operation.
I think it was CT who made the point that for the next year or two there may not be much in way of dividend income because profits are likely to be utilised to fund stage 2 .Looking at the NRR website it would appear that costings for stage 2 have yet to be finalised. Would anyone like to hazard a guess as to what the cost of the flotation plant and everything else required for stage 2 is likely to be? Also perhaps funding come from sources other than income eg revised offtake arrangements if the current offtake Agreement does not extend to all future production?
As British Marine own NRR I suppose that an alternative title for this thread could be "Reason for the deal from British Marine point of view " and perhaps in his 14.29 post of yesterday TDT gives the answer. If correct does this not suggest that Glencore plan to ship at least some of the matte overseas and not overland eg to China or Korea?If so to where I wonder.
Like you CBS I will have to defer to more savvy followers as to how good a deal this is but I suppose the short term direction of the sp will be dictated by who has taken up the placement shares and what they decide to do with them.
GB 33. yes the events that transpired proved to be of considerable help to Plena who no doubt banked a healthy profit but I doubt whether helping Plena was the intention.I think they simply took advantage of the situation which occurred ie a rising sp in anticipation of a positive RNS .
Thanks TDT. So they need no help from AMC and looking at your previous posts I assume you are of the opinion that they have forward sold, in which case they may well do the same in relation to their remaining warrants when the sp spikes again.
Geng, Dominator has answered your query re forward selling and if the Plena shares were admitted yesterday or earlier( and we cannot be certain because the admission date was stated to be on or about the 21st ) the low volume yesterday suggests that they may indeed have been forward sold.However as the sales related to shares acquired by cashing in warrants,rather than by way of a placement and Plena are effectively history,apart from their warrants,why would AMC facilitate the forward selling in the manner described by Dominator or must Plena have borrowed the shares to be sold from elsewhere?Academic point I suppose but I just thought I would mention it.
From the corresponding RNS on their website this is one of several assets which has been up for sale since August 2018.Perhaps JC has been keeping his eye on it for some time and has acted now because it has reached "bargain basement level" in his opinion.
Rather cynical etank. Sparticus I really haven't any ideas but assume that Adam is the driving force here and you have to hope that with his experience we are going to be making a decent investment in a company which perhaps itself has long term expansion prospects which can be pursued when we have the funds to do so.
Perhaps a producing miner with a mc of up to about 10million, perhaps well known to Adam and with no need for any immediate injection of capital.Could be anywhere in the world I suppose,which is no help in narrowing down possible candidates but if it's a leaky ship its sp might already be on the move in anticipation of a deal. Anyone like to hazard an educated guess ?