The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Porvenireal... let me explain something to you. There are a fair few LTHs here having discussions about their investment. Your transparent glee at their concerns is both cheap and unwanted and lacks class.
We haven't been shown where Colin gets the 200million per year revenue from or did I miss that somewhere. In 18 months time will Colin declare that shareholders misunderstood what he meant again ?
Joeman... leaving nothing for shareholders until the mine is up and running. I for one don't want that. Colin said previously he didnt want a JV as then the major partner would be calling all the shots in terms of the timescale and development program. If Colin's revenue claim of 200million/annum is in the right ball park what do you think that 4billion over 20 years is worth to someone ?
If there is a good reason for saying what he has it would have to be good enough so that the why has made the SP fall worth it in what would hopeful be the short term.
He has the data... he could share what he knows but needs time to plan something so making us wait for the official revised open pit study gives him that time ? Who knows what Colin is thinking. He did say he doesn't want to chase unjoined bits of resource. I suppose Ascot is different as we did start poking holes in it.
Quite. Colin said he hopes Ascot joins up. The study can't possibly be for extracting both Racecourse and Ascot from the revised open pit study if he doesn't know if Racecourse and Ascot join ? Those two interviews give me the impression they describe wishlists rather than something based on factual evidence. When pushed on an answer Colin has started this "cant possibly negotiate in an interview" but then says he hasnt even spoken to AA. We dont want negotiation detail Colin, but some honesty so we can evaluate our investment.
I have to ask if we are deliberately being blinded by purposely confusing figures in these interviews. The same happened with the early alluvial projections. We need to be given facts as shareholders or how else can we do the research to evaluate our investment. I get why it may suit Colin that we are given confusing figures but enough is enough. The interview hosts should keep the questions direct and give Colin an opportunity to give direct answers rather than chip in with their own opinions regarding figures mid interview which Colin doesn't then actually correct.
The updated mining study for the open pit is due early 2023. Colin quoted the open pit will deliver 200m (presumably $) per annum revenue. How can he quote that revenue figure without already knowing whats in the study ? That revenue is after 4billion has been deducted from the $8 billion in ground Cu value. Does this mean by quoting 200m/annum that it is now profitable as he has the study figures already ?
We could possibly benefit from a FB style deal. Taking a cut of the 200million/annum revenue for no outlay.
Yes... but then need to find 20% of the start up costs... 20% of 1billion.
What do we know ? We have 500Mt rock giving 1.1mT Cu Eq giving an in ground value of around $8billion (using $7300/ton).
That gives a mine life of 20 years at 25mT/year throughput. Colin says that will give 200million/year revenue (assume $).
So the 8 billion in ground gives 20 years x 200m = 4 billion revenue over the 20 years. Apart from taxes, what else is to come off that 4billion revenue ? I assume the 4billion already taken off is the capital cost of setting up the mine plus the fixed annual operating costs. Colin says the higher grade cap could be mined first and that would payoff the initial mine build after a few years. Obviously we dont have the ability to build a mine and the AA 80:20 would mean we would have to fund 20% of the mine build which assuming 1 billion would be approx 200million. So that is a no go (FB was a good deal as we got a 80:20 arrangement without having to put up 20% of the build costs). Without the AA 80:20 we could accept a 0.75% royalty I believe instead. Is that 0.75% of the 200million per annum revenue ? If so that would be approx 1.5million/year (way less than the FB deal should be giving us).
Which takes us back to the outright sale. Basically we would be selling on a 200million annual revenue (assume $). What would that be worth... any guesses ?
"...and why the situation has been allowed to drift without any indication that mining prospects were not nearly as good as we had anticipated"
Because thats classic "Colin keeping not so good news back". He would have known we were barely reaching 1mT but was probably hoping Ascot would have got us nearer. Many feel totally let down here.
That is his work... selling hopes to people like me who got taken in by it.
Its not what is said on the bulletin boards that have sent the SP diving btw. Perhaps it has something to do with Colin's credibility ?
The market also didn't like what was said in the interview regardless of Colin's hurt feelings. Yup I heard the bit about getting a partner too.
clearly not with shareholders' interests.
Fair play to the iceberg it didn't take him too long to rumble that there is a massive trust issue with Colin.
Stevemocal... this is classic Colin can kicking. It suits the way he operates that there is no definition to where we are at regarding the steps and timeframe. I really do fear for shareholder value here now as he has just given himself free reign to delay this ad infinitum. He really has led us a merry dance.
A4444 that 14:21 trade marked as a buy was probably a sell going by the time and price so it looks as if your "sell now before you lose more money" was taken. Thats a big offload.
Shareholders' interests have not been looked after here. That interview with Zak was a stuttering mess and the roast interview was preparing us for putting Bushranger on hold I think. It looks like the market has decided shareholders have been done here.