The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
Be nice if SP gets above 10p mark & holds.
Otherwise still think it'll happen in 2019.
GL
...and no mention of current finance for ongoing work (working capital or Riverfort).
Are they in a position carry out everything to the end of 2019 and within the strategic plan(2019/2020) from existing finances ?
Is the issue of 'going concern' hanging over them as mentioned in the accounts ?
What say you ?
GL
Good spot TDT
I might be the only one but
1) I sensed he was being guided through it
2) He seems (not surprisingly) knackered and maybe would like to see the back of the PFS
3) Do you think he'd be glad for a buyer to show themselves(IMO unlikely until PFS, TEO & regulatory issues resolved i.e. permits). (Doesn't stop anyone coming forward & entering NDA subject to all matters being resolved).
4) Still/again ...if 2018 has been so spectacular why base the PFS on 2017 numbers ? (Anything to do with the substantial increase in resource/reserve resulting in a further licence payment to RF ?)
5) No mention of road or design ?
6) There was mention of accelerated returns from ASL earlier in the year(for reporting) yet for these last 5 ...it takes until next year ...strange or is it just me ?
and on separate matter how come Randy conducted his slot at recent Minex forum in English whereas it's been Russian in previous years ?
Just my thoughts. (Skeptical me).
GL
tiny...Does he still work for Edison ?
RL
That's an interesting point you make. If strategic partners/investors with greater than 10 or 20% want a seat or 2 on board (presumably to protect their investment) and Randy's recent statement at the Minex Forum of 1 or 2 partners taking a max say 20% stake each the current board may be outnumbered or perhaps harnessed somewhat. At worst it might expose their shortsightedness or reluctance to take a more substantial stake in their own coy/project.
It wouldn't take a lot to sway another 10/11% of (PI)shares in a concerted buyout situation.
Thanks... that's food for thought.
GL
GB33
The volumes and recoveries mentioned by Robin and Randy at least have a range attached of 40k-60k.
I understand the GKZ report submitted to RF needs to state a minimum production level so it might be why they err on the side caution with 40k produced p.a. (otherwise gvt funded projects may incur hefty fines) ...just a guess mind you.
GL
In case anyone hasn't seen it the LME metal debate and Mark Seddon's nickel slot(EV battery expert) probably confirms the market view of dwindling nickel supply, need for investment and consequent nickel price hike for 2019....from 32 mins onward (8 mins) in case it's too long to watch all of it.
Good to see he's got a sense of humour as well !
https://www.lme.com/Education-and-events/Online-resources/Videos/LME-Metals-Seminar-2018
GLA
A currently irrelevant item In case anyone hasn't seen before (in light of Randy's mention of AMC's proposed GKZ reserve report at Minex 2018)
https://amurminerals.com/content/wp-content/uploads/GKZ_MK_Submission.pdf
GLA
translation courtesy of qui quaerit reparit on Discuss the market
For genuine investors - I have seen a few ppl asking on lse about what was said regarding pfs. More then happy to translate this for you guys.Speaker asked Lewis why you don't have plans for Russia cobalt/nickel market instead Asia. He answered that they did looked in to this market too but China is the market Amur is concentrated.The pfs is now being finalised and all the talks in China,Russia and London are talks with people who either wants to expand or top up their storages of resources. PFS at the final stage. Must be not just us but and big boys just waiting for it to be released.Hope this helps:)
GLA
"the market doesn't think it is so good"
Looks like the market does....but not much !
Unless/until JLP turn in a profit for all their efforts or there's some groundbreaking news announced (we all hope) I can't see the SP moving significantly.
The increased revenue and earnings (whist positive) have probably come too late to impact FY 2018 results and given the construction timelines unlikely to heavily impact FY2019 also.
At least with a favourable newsflow in the upcoming period to Dec and Q1 2019 we might look forward to some sp improvement next year. i.e. with all the crap out of the way.
Either that or does can anyone see as far as 2020 ?
GLA
cossy
Looks like the initial Riverfort $4m tranche turned into a circa net $3.5m cash receivable to AMC.
Suggests to me a cash burn of approx. 2.6m (for 6 month period to June).
From their 3.5m June balance looks like they'll be OK until the end of 2018 and perhaps into Feb 2019 but do you reckon they probably need to fill the pot for activities for the remainder of the year ?
Hope there's a finance deal forthcoming very soon otherwise ????
What say you ?
GL
Parky
I haven't heard this call yet but honestly I take your point.
My personal view is/has been (due to length of time data room has been 'open') PPC may be struggling to convince other parties to invest in the concession/country due to the absence of ANY oil/gas production there and it might seem a risk too far for them or PL is asking for too much for a stake or others looking for it too cheaply.
The absence of significant country partners and available infrastructure to send product to market may be what's deterring others to invest there even if they hold rights i.e Amerisur.
Perhaps (given the planning time required) PPC view it as they'll soon be obligated to drill there or lose the 'opportunity' they see in the seismics at their disposal.
Originally (2D & 3D seismics) this was perceived as both a 'company and country making opportunity'.
If $10m is what it takes to open up production they'll just have to weigh that against the perceived risk now ....not sure if it's one or more wells they're planning and only PPC are 'in the know' and the risk/reward.
The amount spent ($100m ?) is already history. So I guess it's a case of what if I invest $10m now what are the chances of recouping it and the amounts already spent ?
I don't know about you but there were great expectations surrounding the Para drilling a few years ago and it's taken a while for the company to recover from the disappointment(financial and operationally. If they can easily internally fund a drilling campaign without compromising the 'hard built up activities' then go for it ...especially if it could be company making next year and we'll all benefit (wish it were this year !).
What say you ?
GL
Much improved H1 as mentioned. Hopefully be in position to turn the bottom line loss into profit by end of year.
(Some hefty finance costs ?)
Potential to hit $50-55m revenue this (full) year if ave of say 2400bopd for H2 2018.
With additional wells online by end of year and/or early next ...we might anticipate 2019 to be the turning point.
Each additional well of say 100bopd currently equates to $2.5m.
GLA
Forgive me … but can anyone distinguish between the words of "PFS" and the "strategic scheduling" going into the audit in that interview.
Is there a difference or is it just fluff ?
GLA
Don't like to say it but try zero Potatohead ... that's the same as any share though ...we just have to question whether that's realistic ?
Wonder if it's payable in $ or peso ?
i.e. Is there a foreign exchange benefit which improves the deal ?
Lucando
Refer RNS of Mar & May 2016
...and there's no more room for instits.
CS
In one of the recent Proactive interviews (don't quote me) he said that very same thing you mention..that the anticipated cost had now come down to $150m ...on information supplied to him by regional government....I think his words were "the Russians can do it cheaper but the Chinese cheaper still".
Perhaps the other funds may be for the power line from Zeya region to smelter if it comes about.
Whatever ...it's still positive.
GL
Coincidentally equates to circa £150m or $200m....perhaps the price of the road & power line extension.
If my mem serves me right they tend to offer finance on a retrospective basis and up to approx. 20% of investment....i.e. you come up with yours and this is what we'll offer.
Casting an eye down some of the other projects state funds for infrastructure seems the key.
I guess the roads could/would be available for other residents and/or projects (not necessarily mining).
There's also a project to 'beef up' the power supply to mining projects somewhere in the region so it'd serve the rail company and local residents also.
Did anyone notice the offering of subsidised container transport in far east...that could be useful given the volumes involved.
We'll just have to wait and see I guess.
GLA