Member Info for Manlord

Phil Brumit said: "I am delighted to be joining Empire Metals at this exciting time in the development of the Pitfield Project. In my career, I have worked internationally for large US-based mining companies in the development and mining of world class deposits that were essential to global metal supply but also helped propel those companies into the future. I recognize Pitfield as being a truly world class deposit that can become a globally significant mine capable of producing large tonnages of high-purity titanium, a critical mineral essential to the world's manufacturing industry and transition to green renewable energy as identified by Australia, the United States and many other countries around the world. Through the rapid development of the Pitfield Project I believe Empire Metals is well positioned to participate in the expanding titanium market that is expected to double in the next five years.

ML

Was just trying to compare Pitfield to various projects around the world but we are slightly different to all in terms of none of the projects being identical.

As we have already identified a substantial near-surface TiO2 mineral deposit, primarily comprising high-purity anatase and rutile, now considered notable for its low impurities and high TiO2 grades, its very likely going to be a future source for high-value products like titanium pigment and sponge.

We know Pitfield encompasses a vast mineral system (40km x 8km) enriched in titanium and copper (That’s for another day), our drill programmes have confirmed consistent titanium mineralisation, with grades ranging between 4% and 10% across extremely thick intersections. Notably, this mineralisation starts at near surface, co firming the potential for low cost mining operations.

If we compare Pitfield to other large titanium deposits globally, the Pudozhsky mine in Russia’s Republic of Karelia has reserves estimated at 516.7 million tonnes of ore grading 8.1% titanium, or the Engebofjell mine in Norway’s Sogn og Fjordane region with reserves of 400 million tonnes of ore grading 4% titanium. Comparatively we have a find of significant importance and size and is now likely to be one of (us being the biggest) several major titanium deposits worldwide.

Specifically let’s take a look at the stats:

Estimated Ore Tonnage:

Pitfield Project: 26.4 to 32.2 billion tonnes

Engebø Mine: 154 million tonnes

Titanium Dioxide (TiO2)Grade:

Pitfield: 4.5% to 5.5%

Engebø Mine: 3.8%

Contained TiO2:

Pitfield: Approximately 1.5 billion tonnes

Engebø Mine: Approximately 5.85 million tonnes

Project Status:

Pitfield: Exploration Target defined; further drilling planned to establish a Mineral Resource Estimate

Engebø Mine: Operating license granted; project in development phase

As of today, Nordic Mining ASA, the Norwegian company developing the Engebo mine, has a MC of approximately 2.47 billion Norwegian Krone. At the current exchange rate of 1 NOK equaling 0.071 pounds sterling this equates to approximately £176.3 million

I won’t go into the specific calculations but just look at that again!!!!! We have higher grades and 207 times the resource they have!

We have a current MC of less than £60m. The risk v reward ratio is better than I have ever seen, not only on AIM, but any market.

This is a prime example of the market / investors / competitors & pretty much everyone else thinking “this is too good to be true”, but they are wrong. SB, NoB, GC, AF, NM & now PB (all from highly reputable companies (BHP, RIO, LUNDIN etc) have given their stamp of approval. Buy your tickets and enjoy the ride. I’ve no idea where it will end up but every single bit of research I do points me in the same direction.

If gov’t funding is confirmed, the SP will launch from here and never return. It’s very exciting indeed.

ML

Investors & sharholders take comfort, the final product is almost there. We’re on the cusp!

Strong and positive narrative from SB. He’s in absolutely zero doubt about what we’ll be delivering, and given the current Mcap, it’s almost impossible to do so & not have a significant rise to match that of a PRODUCER Mcap.

Looking forward to this one now.

https://x.com/tmsreach/status/1891471285957378544?s=46&t=ZJI0eYTSNTDS5td0s4vPXw

https://x.com/tmsreach/status/1891488429642326228?s=46&t=ZJI0eYTSNTDS5td0s4vPXw

ML

I’m glad we are doing this as the high grade material can improve the project economics.

“which show average grades of over 6% TiO2 and intervals as high as 18% TiO2”

If we can confirm these in Thomas & Cosgrave (which we are very likely to) then the MRE data improves significantly as we saw from my very basic calculations of NPV.

For context 60 hectares is 1.5 times the size of Heathrow Airport.

SB & Co. are not skipping one item on the list to bring something to market early, but with less than max potential. Nothing is being left on the table, and that’s how I like to see the companies I’m invested in behave.

Plenty more news due but again, solid update and as Ninja mentioned, customers!!!!!!

ML

Do you know what,

Great to see thought provoking questions and respectful replies on this forum. Once upon a time this was the AIM forum to be in, let’s get it back to where it was, only difference is that the Pitfield project is hugely advanced from that point.

ML

Yes both correct!

hypothetically, if you have 4 billion tonnes of material with a grade of 5% titanium, then the total amount of contained titanium would be:

4,000,000,000 tonnes × 0.05 = 200,000,000 tonnes of titanium.

Essentially you would have 200 million tonnes of titanium in the pay dirt.

In the real-world, actual recovery rates would depend on the processing efficiency as not all titanium would be recoverable due to metallurgical losses (SB trying to streamline that now)

The ore composition is also a factor as some of the titanium may be in mineral forms that are more difficult or costly to extract (SB working on that too).

The cut-off grades and economic viability could also determine exact ti02 tonnage as only the economically recoverable portion would be mined, but were told the weather cap is loaded with it from top to bottom as per the drill programmes.

The simple calculation in a pure theoretical sense, assuming 100% recovery, correct, we would have 200 million tonnes of titanium from 4b tonnes of material.

We have some drill intercepts higher than 5% also.

ML

And sorry to be boring everyone but it must also be noted that I have used the $5,500 figure for T102 when in fact SB has publicly communicated titanium sponge prices between $8,000 & $12,000 so taking an average of $10,000 would mean the following:

With the updated titanium sponge price of $10,000 per metric tonne, the net present value at a 10% discount rate increases to approximately $2.03 billion ($2,028,097,896 to be exact).

This more than doubles the previous $1.03 billion npv, highlighting just how important commodity prices are on project valuation. This to me certainly reinforces the significant potential of pitfield if titanium prices remain at elevated levels.

Again, all hypothetical and of course any future NPV would have definitive costs, times, tonnages, discount rates, opex, capex & a host of other factors to consider.

Ok enjoy your weekends.

See you at the next piece of news.

ML

Based on the previous hypothetical example I have adjusted the NPV calculation by changing the discount rate from 7% to 10% (closer to Industry averages I believe).

Substituting the adjusted values, the new NPV is $1.03 billion!

The decrease is obviously expected, as the higher discount rate reduces the present value of future cash flows but still over $1b so would remain highly attractive if this was indeed anywhere close what any future JORC MRE might confirm (2025 🤞🏼)

Will be interesting to see how close or far off this is to the reality, which leads me to an obvious question………………Ageos, where are you? We would appreciate your technical expertise, rather than having to suffer my crude & rudimentary assumptions & calculations 🤦🏻‍♂️

ML

Hi Grampyan,

Do you mean opex? That will have a significant impact if that’s what you mean? Maybe I could use a trailing average from $10m to $100m as production increases.

I have spoken to a couple of knowledgeable people who also think the discount rate of 7% might be a little low, I’m going to recalculate with a 10% discount rate also & see where this hypothetical NPV lands.

ML

CTD……

• Regulatory and Environmental Factors: Long-term, Pitfield will navigate evolving environmental regulations and potential socio-political challenges but as we are in a tier 1 pro-mining jurisdiction, our chances should be good.

I’ll happily be corrected or educated on some of my assumptions but feel free to discuss or critique.

In terms of the $1.56b and if it’s considered good, in short, yes, it’s a very strong NPV in the mining industry.

For those not sure about NPV, a mining project’s NPV reflects its expected profitability, adjusted for time and risk.

Industry benchmarks vary, but for most mining projects with an NPV over $1 billion is typically considered excellent, especially if paired with a strong IRR (Internal Rate of Return).

Smaller projects often have NPVs in the hundreds of millions rather than billions so maybe I’ve overestimated my assumptions?

If Pitfield has a reasonable capex, strong IRR (15%+), and robust fundamentals, $1.6B NPV is outstanding. It would likely be seen as a top-tier project in most mining sectors, attracting major investors which SB said he is targeting. Let’s remember he said and I quote “Pitfield will shake the titanium industry to its core”

Thoughts?

ML

Hi Gemrusty,

Please forgive me but I had taken a wild stab in the dark at this previously, I’m not a mining financier so please bear with me on this.

Below is a hypothetical example for Empire with some logic applied. In this scenario, I of course made some assumptions.

1. Time Period:

Let t = year, where t = 1, 2, 3, …, 100.

2. Production Schedule, P(t):

For years 1 ≤ t ≤ 5:      P(t) = 10,000 metric tonnes

For years 6 ≤ t ≤ 10:     P(t) = 20,000 metric tonnes

For years 11 ≤ t ≤ 15:     P(t) = 30,000 metric tonnes

For years t ≥ 16:        P(t) = 40,000 metric tonnes

3. Titanium Price:

Price = $5,550 per metric tonne (sponge Ti02)

4. Operating Expense per Tonne (with economies of scale):

We assume that in the startup phase (at 10,000 tonnes per year) the cost is $1,200 per tonne. With economies of scale, the per‐tonne operating expense in year t is given by:

   OpEx_per_tonne(t) = 1,200 × (0.9)^(⌊t/5⌋)

(Here, ⌊t/5⌋ means “the integer part of t divided by 5”, i.e. the number of complete 5-year periods elapsed.)

5. Annual Operating Expense, OpEx(t):

OpEx(t) = P(t) × OpEx_per_tonne(t)

6. Annual Revenue, R(t):

R(t) = P(t) × 5,550

7. Net Annual Cash Flow, CF(t):

CF(t) = R(t) – OpEx(t)

8. Discount Factor:

With a discount rate, r = 0.07 (7%), the discount factor for year t is:

   DF(t) = (1 + 0.07)^t

9. Present Value of Cash Flow in Year t, PV(t):

   PV(t) = CF(t) / DF(t)

10. Net Present Value (NPV) Calculation:

With an initial capital expenditure (CapEx) of $10,000,000, the NPV is given by:

NPV = (∑ from t=1 to 100 of [PV(t)]) – 10,000,000

= (∑ from t=1 to 100 of [CF(t) / (1 + 0.07)^t]) – 10,000,000

When these assumptions are put into the formula the estimated NPV comes out to be approximately $1.56 billion.

This HYPOTHETICAL example shows how production ramp-up and economies of scale can be incorporated into Empires NPV calculation. Adjustments to the assumptions (such as the scaling factor, discount rate, or cost per tonne) would change the result accordingly. I’ve used the max 40,000 tonnes per year based on the current highest producer VSMPO-AVISMA production figures.

Things to consider:

• Sustainability of Production: Maintaining a production level of 40,000 metric tons annually over a century is ambitious and would require substantial reserves and consistent operational efficiency but we do have the reserves, maybe we’ll produce even more?

• Market Dynamics: Fluctuations in titanium prices and demand could significantly impact revenue projections. I’ve seen sponge priced at $10,000 per tonne.

• Operational Costs: The assumed OpEx of $10 million may be conservative for such a large-scale operation; actual costs could be higher but as we might start off small it’s just an estimate.

• Regulatory and Environmental Factors: Long-term, Pitfi

SB lines them up and just ticks them off one by one, just like he says he will.

We have the dirt

We can strip the dirt cheaply

The dirt can currently be processed to 91% (expect more)

Next up:

· bulk sampling and metallurgical testwork to deliver flowsheet design and high-quality product specifications

· engage with industry players to test product suitability for chloride pigment and Ti sponge metal feedstock

· in-fill drill and prepare a Maiden Resource Estimate

· mining option studies proving low-cost potential

· pilot plant design and commissioning, aimed at optimising the process flowsheet and product specifications, as well as defining unit economics.

There’s no looking back now & this is exactly why Shaun & Empire are attracting attention from industry big hitters.

Up, down, around, I couldn’t care less. This time next year we won’t be sub 10p that’s for sure.

The process flowsheet on the presentation was a giveaway & the presentation in 🇺🇸 will have lots to discuss! We’re not done yet!

ML

For those who haven’t seen it, link courtesy of Ads Trader on EEE Telegram.

Https://x.com/empiremetalsltd/status/1887051765847122015?s=46&t=ZJI0eYTSNTDS5td0s4vPXw

Based on the above you would have to assume the BoD are well aware of the new funding round applications.

SB has spoken to me directly about the available funding options to the company. We’re all aware of them as has been discussed recently and the latest EIS became live on the 4th Feb. No idea when or if or how much we will apply for but all options are on the table with outside sources also an option.

Again for clarity, there are various grants that we can apply for, the last grant option is now closed to applications as it was a three year program that started in 2022.  The new grant, along with other similar grants from the federal and state governments generally provide up to 50% funding of a project cost. 

 

The current strategy is to continue with the R&D Tax Incentive, where Empire receive 43.5% back for all eligible expenditure for R&D work (a large percentage of the work, i.e. metallurgy and process development).  The next step would be to consider applying for a grant to fund the Pilot Plant (or else we could continue to claim the upcoming pilot plant expenditure under the R&D Tax Incentive).  Empire need to work on costing and plant design details before they are ready to consider which grant is most applicable and then proceed to apply for the funding.  They can’t double dip, i.e. if they get one government grant, i.e. the EIS, then this funding has to be taken off any other grant funding, i.e. the R&D Tax Incentive.

I’d be amazed if we don’t have funding offered to us under the criteria of what we are trying to develop, and what the company is posting themselves.

ML

Hi JT,

The last investor presentation was communicated in December (no flow chart) however there are certainly specific changes to the flow chart presented last June.

https://www.empiremetals.com/wp-content/uploads/2025/02/Empire-Metals_Corporate-Presentation_2025-02-02.pdf - 2025 with a confirmation of processing using conventional methods. We're not needing any new technologies so this has essentially become a situation whereby existing tech can create the end product.

https://www.empiremetals.com/wp-content/uploads/2024/09/EmpireMetals_Powerpoint-June-2024_FinalSP-1.pdf - June 2024

Maybe I'm missing something?

ML

Now that’s what you call a presentation. Notice the flow sheet! Empire know exactly how the easy strip, low cost, high grade weathered cap will be processed. Game on.

ML

➡️ Our location is ranked as one of the top mining jurisdictions in the world according to the Fraser Institute's Investment Attractiveness Index published in 2023, and has mining friendly policies, stable government, transparency, and advanced technology expertise. Pitfield has existing connections to port (both road & rail), HV power substations, and is nearby to natural gas pipelines as well as a green energy hydrogen fuel hub, which is under planning and development. It ticks all the boxes.

➡️ Building on our overall communications & PR programme as we move towards the commercialisation of the giant titanium rich mineral system that we have discovered at Pitfield. The first intro to our company must be polished, and up to date at all times. If we’re going to be a big player, we must act like a big player. The new corporate website completed mid-Sept was a big step to achieving this & our latest confirmation of attendance in NY with SB one of four keynote speakers (TY Scott22) must surely be viewed as a positive PR sign.

➡️ Finally funding. Outside of the September 2024 oversubscribed equity placement, raising £2.5 million at 7 pence per share, and the institutional investment of £3 million placement to TransOceanic Minerals, a Saudi Arabian investment firm, in August 2024 which I believe underscores the growing confidence in the Pitfield we also received a funding grant of A$110,000 from the Western Australian Government’s Exploration Incentive Scheme (EIS). This grant supports and reflects the governmental backing for the project’s advancement so it would be very advantageous for us to hear more about this as we have already been engaging with various levels of government to access further funding opportunities for bot h exploration and project development stages. SB has acknowledged the Australian Government’s commitment to supporting critical minerals projects, as evidenced by a $1.25 billion low-cost, non-recourse loan to Iluka Resources for a similar venture.

These financial aids give us a great opportunity to advance Pitfield towards economic development.

All in all I’m hopeful that the Empire team are on the cusp of some transformational news, but this is AIM, so be prepared for the unexpected also. 12 years here has taught me to expect the unexpected in both positive and negative ways.

DYOR!

ML

Empire trading over 8 million shares in a day and gathering higher daily averages is potentially good news, seeing as the SP is rising in little increments & no major spikes. This is exactly how I’d want to see us trade during Q1. It sets a strong base or support level in the hope or expecting of good news.

The tighter Bid-Ask spread has clearly made it easier to buy & sell with the bulls taking over recently with some particularly chunky trades.

The increased volume is giving us a somewhat stable price & reduced volatility which may now attract further investment (retail & II) thus improving momentum, however like we’ve seen time & time again this current rising trend will need some fundamental news to sustain more upward movement & strong demand.

Full steam ahead at work today & I’m sure their first director meeting with Philipp Brumit will identify the primary objectives and the key milestones for H1 25.

As we know the primary objective is to accelerate the economic development of Pitfield, with the sole outcome of becoming a leading producer of high value titanium dioxide products.

Some of the potential RNS updates (please add more if I’ve not covered everything);

➡️ flow-sheet completion

➡️ Additional test work to optimise recoveries

➡️ Design of the continuous pilot plant

➡️ Successful confirmation of separation of weakly magnetic minerals fe-ti oxide Vs Quartz & Hematite.

➡️ Updates on potential uses of gangue minerals such as Kaolin (China clay)

➡️ Full assessment of the high grade, high purity titanium product as to whether it will be feedstock for pigment production or the conversion into the most desirable titanium metal sponge. We have the potential to produce a wide range of products depending on market conditions so we can pivot quickly if required.

➡️ Confirmation on potential byproducts to reduce waste stream & improve revenues.

➡️ Environmental updates via Carrie Pritchard. The environmental impact assessment process started at the end of September , with ecology (fauna and flora) and baseline dust monitoring being the first of several studies to be initiated. These will help inform the project team during the process design phase and provide important background information as we move through the various development and approvals phases for Pitfield. The consultants engaged to undertake these studies are highly respected industry experts who have an in-depth knowledge of environmental policy and legislation for WA. As SB stated during his meeting with the town officials, early & proactive engagement with the various stakeholders at Pitfield should maintain already positive relationships that Empire holds with the local community (Three Springs Shire Council) and stakeholders, with whom Empire continues to actively engage with on a frequent and regular basis.

CTD……

As I said this appointment marks an exciting phase for Empire, leveraging Brumit’s extensive experience to drive strategic decision-making and value creation for shareholders.

Let’s remind ourselves of what he thinks;

“I am delighted to be joining Empire Metals at this exciting time in the development of the Pitfield Project. In my career, I have worked internationally for large US-based mining companies in the development and mining of world class deposits that were essential to global metal supply but also helped propel those companies into the future. I recognize Pitfield as being a truly world class deposit that can become a globally significant mine capable of producing large tonnages of high-purity titanium, a critical mineral essential to the world's manufacturing industry and transition to green renewable energy as identified by Australia, the United States and many other countries around the world. Through the rapid development of the Pitfield Project I believe Empire Metals is well positioned to participate in the expanding titanium market that is expected to double in the next five years."

Enjoy your weekends.

ML

How sad is my life researching Empire metals on a Saturday, however I’m doing so with a nice bottle of red with the 🏉 on the tv ☘️ 7-0 to Leeds today and 5 points clear of playoff positions 👌🏼

Anyway, having looked into the appointment of Philip Brumit in detail & the latest RNS confirming our attendance and presentation at a North American mining conference it appears to me that PB is going to play a significant part in Empires story.

As of today, PB has taken up his position as NED in Empire, a move that for me signals a very strong intent in advancing the Pitfield Project.

As I’ve covered previously, with his over 40 year experience in mining operations, engineering, and project management,PB has held senior leadership roles at Freeport-McMoRan ($55b MC), Newmont Corporation ($48b), Lundin Mining ($11b) and Filo Mining ($4.5b). His career has been largely US based, with ties to major American mining corporations, making his appointment particularly interesting given our strategic plans to expand our global profile, with our world class, industry disrupting, low cost, high grade Titanium deposit.

PB’s role will be to provide independent oversight, strategic guidance, and governance rather than engage in day-to-day operations which I believe will assist us greatly by calling on his deep industry expertise. He will certainly help de-risk and optimise Pitfield’s development, ensuring that we navigate all potential and future challenges as efficiently as possible. Looking into each of the roles he has held, it’s clear to see he specialises in operational best practices, risk management and stakeholder engagement on an active level.

It is my firm belief that this appointment is more important than we even know at this point, PB will definitely play a key role in shaping Empires long-term success.

Taking on or joining a current mining minnow (soon to bigger?) coming from companies who deal in the billions of dollars, is almost confirmation that he believes we are uniquely positioned (Western Australia) in a Tier 1 mining jurisdiction with a pro-mining government that supports resource development and that he can bolster his CV & bank account being part of Empires Titanium story.

The titanium industry, which is gaining strategic importance globally (now recognized as a critical mineral), demand is rising rapidly, particularly in sectors like aerospace, defense, and advanced manufacturing so this could be the perfect storm on multiple levels.

Adding further intrigue, Shaun is set to present at a major mining conference in North America this March—a timely development given PB’s strong American connections. The North American titanium market is significant, and Brumit’s experience with U.S. mining giants could provide Empire with greater exposure and potential partnerships in this crucial sector.

Ctd……….

There you go HappyHols.

Hope you find that helpful.

ML