Member Info for Krayl49

Just don't get carried away - the SP also went up to 37p on 9th October, then straight back down again. We may still have a bit of a wait before the rums and champagne come out!

I got into TRX earlier this year and am now getting to like it. I was fortunate to be able to buy into the (horrible) placing, which left my average cost as 0.44p so am into a decent profit. I am now expecting to hold for a good long time.

Do you have any evidence for suggesting the mkt cap will take off with a discovery? Small miners with a proven resource can take years to get above this cap.

Just come across this company and have to say it is rather unusual. Loads of different opportunities, with no definite evidence for any of them. This could be one for the pure gambler, good odds that one of the 8 areas will prove fruitful. On the other hand a market cap of 17M is high for a company with no proved resources – that is more typical of a junior minor that has already made a discovery.

I don't understand why this keeps going up on the positive news from Valore - but Valore doesn't! I hold both, but I do think that VO is the better medium/long term proposition because of the Pd resource.

Maytal, you could be right. I am one of those LTHs. I took out £100k in cash to keep the wife happy, leaving me with nearly 5 million shares.

When we all get our vast amounts of cash from the sale, many will be looking to invest in the next Pd opportunity. There are three small cap exploration plays with resources in Brazil, Australia and Finland and it could be a good idea to start investing in these now, before the EAU cash pushes the price up. To my mind the best one to go for is Palladium One in Finland. To summarise the three:
The Munni Munni resource in Australia holds around 1.1Moz of palladium. Artemis (ARV on the Australian exchange ARX) sold part of the resource to Empire Metals (EEE) for a very small amount, with EEE getting shares in ARV. However, the deal is being contested in the courts, so this is very uncertain. One to monitor.
The Pedra Branca resource in Brazil holds around 1Moz of palladium and was owned by Jangada Mines (JAN), who sold it to ValOre Mining Corp (VO the Canadian exchange CVE), again for a very small amount, but including shares in VO. JAN have subsequently cashed in some of the shares, so investing in VO is the better exposure to the palladium. VO has a total MCap of only US$18m, including various other resources, so there is a large potential upside. The share price is currently showing no sign of shooting up but is one to keep a careful eye on.
Palladium One (PDM on the Toronto Exchange) is drilling a site (LK) not far from MT over the border in Finland. The estimated resource was around 1M Oz Pd until the announcement this week ‘significantly increased’ the estimate. The CEO stated “LK is shaping up to potentially be the largest palladium dominant open pit project in a best in class mining jurisdiction, globally.” I guess that means that he regards Finland as a better place to do business than Russia (or South Africa). Anyway, the share price has risen from C$9 to C$17 this week which still gives a market capitalisation of only £12.5M including their other projects – well worth looking at.

Palladium One (PDM on Toronto Exchange) is drilling a site not far from MT over the border in Finland. The estimated resource was around 1M Oz Pd until the announcement this week ‘significantly increased’ the estimate. The CEO stated “LK is shaping up to potentially be the largest palladium dominant open pit project in a best in class mining jurisdiction, globally.” I guess that means that he regards Finland as a better place to do business than Russia (or South Africa).
Anyway, the share price has risen from C$9 to C$17 this week which still gives a market capitalisation of only £12.5M including their other projects – well worth looking at.

"rhodium @ price of $5000/oz.."

Even better - it's actually $13,600 an ounce!

Just bought 1.6M shares to take my holding over 1%. Trade went though on Aquis so didn't show up on L2.

Hi Bristol
I am always interested in looking at small cap companies recommended on here (after all that is how I found EAU in the first place on another board), but I am having problems researching BOIL - can you point me at anything to justify your post?
Cheers

I use III for International trades - works well.

That's why I bought ValOre! I have kept some JAN.

Thanks to whoever recommended the Aldi champagne at £12.95 - excellent. May be trying Cristal when the sale goes through!

I have done a massive amount of research and am totally confident that my very large profits will increase more ..... but I can sympathise with Kev getting the heebie jeebies - don't be down on him!

Yes - so that promotes ValOre as a buy. I invested in Jan purely for Pd, which now means I will be moving to VO, but on the way I have been impressed with JAN, so I will also stay invested here (for now!)

How to value in-ground resources? I have come across 2 examples of Pd resources being sold recently - roughly figures are as follows:
• Sale of Pedra Branca from JAN to ValOre. In ground value of £4.7B sold for £6.4M – return of 0.14%.
• Sale of Munni Munni from Artemis to EEE (now contested). In ground value of £0.8B sold for £2M – return of 0.25%
In both cases shares were awarded in the buying company so the seller will benefit from any exploitation, so the percentage return should end up considerably higher - maybe 10x higher.
On the other hand, if a company is deciding to mine their own deposit what return would they expect? Given the vagaries of metal prices, I can’t see mining being started unless they were calculating at least a 30% return, and probably considerably more.
We have a big disconnect here. I assume it is a question of having the capital to do the mining, taking the risk on getting the return, and investing the time to get that return. So a large company can buy a potential mine at say 3% of its value and exploit it at say 30%.
As an aside, EUA’s potential return is over 80%, and they are in a position to mine it themselves, so expect a much higher sale price.

OK I now I understand where the figures come from -JAN's initial assumption of 40m to 60m tons of ore multipied by the yield from the drilling programme. So if their assumptions are right we have an in-ground value of over $7bn. Does anyone know the normal company valuation from in-gound values for minerals of this type?
Taking an arbitrary share value of 2% of in-ground value (based on no facts whatever) as an illustration, that works out as 45p per share, plus the ValOre holding which I took a punt on as 25p per share.
I am not expecting to see anything like these share prices, but to me that makes it a good buy!

Hi David,
Your calculations I assume refer to the RNS of July 22nd , thanks for working them out, I must knuckle down and do the calculations myself sometime. They are really quite startling, and the sort of figures I have been used to for Pd, not Fe and V. I am surprised that it has taken a week to pick up on them, but it looks like it started today. Monday could be interesting, I will have to see how difficult it is to buy.
Cheers,
Nigel

Not me buying this morning