Member Info for Legalwolf

Some big buys coming in. On for a strong close this week. GLA

PP - they already have the EIA and mining licence for the existing resource. They completed an economic study and won't be needing a PFS a) because they are going it alone, and b) not a requirement on AIM to have a PFS in order to declare a NPV and resource.

CMET is cashed up at $2.8 million and about to go into a two month drilling programme which is looking to double the existing NPV. Newly appointed and rather impressive sounding new COO is going to pursue vendor and offtake financing. The capex to get into stage one production and cash flow positive is not prohibitive and they are looking to bring it down further.

Doesn't have a high free float (hence the big moves up and down) and think there is upside to be had from it's current 1.5p based on the plan outlined today by the Chair. Could double in 6 months depending on progress made. I've entered and will add on confirmation of drilling - still waiting on Sri Lankan authorities who can really delay things, but Chair has confirmed that final drilling permit will be issued this week.

It's a catch 22 - without clarity on the financing, the share price is going to struggle to consolidate at higher prices, which then undermines any plan to raise at higher prices. MR will know that a big question that overhangs the DFC grant, and hence Bres, is around the 'when, how and who' pays for the remainder of the DFS costs. The SI and AI money is important in this context as it covers some of the costs, but without it, what happens?

What results are we expecting to land next here? Is it Nara?

No, I still think CMET should avoid having to raise such an amount, and there is a possibility that they well might avoid it. But they have so much activity coming up, that I can see upside from 1.5p, well before the 9 months is up. You always monitor and react to developments, especially on AIM, and whether I stick around for any future placing, remains to be seen. I might or might not. Bottom line is do I see upside from 1.5p, notwithstanding this particular issue? and I have decided 'yes' based on this latest plan outlined by GM. Time will tell whether it's the right call or not.

Dunno PFG - it's unclear and must confess that I don't know. I think the original explanation was that the Prospectus had been delayed. If Bres have changed their minds, does it not need a RNS, as the original announcements were made by RNS?

Yes, happy to add/accumulate at these levels and think this is the bottom of the drop. Risk to reward from these levels is very favourable imho. Still not 100% sure about this going it alone plan, but feel reassured by this new appointment. Hopefully he will sort out the vendor financing and offtake, but the fact that CMET is cashed up and will be drilling whilst progressing those discussions means and announcing a revised NPV, means there is money to be made by buying at these basement levels and holding for these above milestones. All imo and GLA

No way a Prospectus takes this long. Must be an issue with the investors, or maybe Bres don't want to give so much away for 5p, and think they can raise at higher levels in the future. When will Bres need cash i.e. start financing its 50% of the DFS?

I agree BBN, esp as he now thinks Sheffield pulling out is a blessing in disguise. However, regardless of which scenario now unfolds: going it alone (perhaps with Sheffield as a majority holder and financial backer) or giving away a share of the project under a JV, the gains for CMET shareholders from these levels will be significant either way.

The drilling RNS should trigger the comeback and/or Director Buys from Greg.

I'm trying to think how this may or will look in 6 months' time - especially to new investors and with current troubles long since forgotten. A cashed up minnow sitting on the highest grade mineral sands project in the world, with a nearly doubled NPV, financing and offtake progress towards Stage 1, and with strategic investment into it from Sheffield (who should be in a much better shape themselves by then as well). Definitely worth a bet at these levels - as the news flow from hereon to end of year should all be positive - barring any mishaps or curve balls thrown in by the authorities. All imo and dyor

Thanks Sid - just listened to it. I agree that it was a really good performance from Greg. Drilling looks imminent and highly likely to produce an increase in resource and NPV. By the time we get those lab results, there is likely to have been progress on the vendor and offtake financing discussions through the new COO. Either of these - drilling results and financing news - should re-rate the share price from these levels. The other good news appears to be the high level of confidence that the cost of getting to stage one production will be much less than the $37 million estimated at present - again this will need confirming. I was also pleased to note the discussions taking place for alternatives to the port, and the positive support now being received from the Sri Lankan Govt.

The main question mark that I am left with is that the messaging appears to be contradictory and mixed. On the one hand Greg is now determined to "go it alone", but on the other hand he is looking to increase the resource and NPV to make it attractive to potential future partners? So which is it?

But overall - I think this is a good value bet from these levels based on the newsflow coming up, and if they manage to increase the resource/NPV (as they surely will) and with progress being made on the financing front (which they undoubtedly will make esp with the new COO), this could be a real bargain albeit that patience will be required. So I'm happy to buy back in at these levels and will add based on progress.

Finally, we shouldn't forget that Sheffield might pump another £850k into CMET before their option runs out in March. Can't see why they won't based on the progress that will have been made by then. Also think there is a good chance they might well cover CMET's share of the newly revised Stage 1 production costs and thereby increase their stake in the company? All imo and dyor

Must be the cash position and need to raise funds?

Did he provide any details of the drilling programme, or will that all be covered in the RNS? Anything said about how the Sri Lankan authorities are feeling about all this?

I will need to listen to it, but will there not be visual results put out before the eventual (and more definitive) lab results?

I think one of you mentioned looking out for recovery plays. I think this could be a candidate to get back into the 3s.

I already said it was a good appointment. I don't disagree with BBN about this bouncing back from the lows, it's more about whether it will be able to sustain a rise if in the future it needs to raise lots of cash. But on AIM, as I have often said, it doesn't pay (literally) to look too far beyond the end of your nose, as anything can happen next month, next quarter, etc which changes everything (for better or worse). They might find a non dilutive solution, or contrary to my belief, the share price might go on a sustained run, meaning that any future raise will be at much higher prices. It all depends on what sentiment they can restore between now and then. Today is a very good start, and let's see if CMET can build on this tomorrow. All imo and GLA

Thanks BBN - I wonder if he will be at the investor meet presentation?

The appointment must have been in the planning already - no way they will have pointed him simply in response to Sheffield pulling the plug. But very decent looking background/CV and just hope it's not another 'mate' being brought in.

Not sure they have flow tested at Anchois? If so, is there still some proving up to do by ENOG re the existing discovery?

BBN - you make some valid comments. Whilst the share price might well rise in response to positive news, I suspect it will then fall back again, as we get close to any equity raise. Anything approaching $10 million is going to require a massive discount, because we know how difficult a market this is for juniors and the brokers usually have them over a barrel when it comes to placing discounts. Of course, if CMET bring in some NHW/Insti to take part in the placing, then it might be different. That is entirely possible if there is a pathway to production all lined up by then.

But as I said, I'm thinking this is more of a trading share until or unless it manages to execute on Plan C, or show concrete progress and signs towards doing so. But doesn't mean that it won't do that, or even if it doesn't, that there isn't money to be made on it regardless in the interim as a swing or position trade, rather than LTH. All imo and dyor