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…or even some meaningful #BRES news. Wasn’t mad on that investment initially but they might be onto something, results from their China bulk testing apparently due end of this month - which should lead to offtake news and hopefully provide a pathway to funding.
Think it’s jumped over both the 50 and 200 day moving averages today. Let’s hope it continues on an upward path.
https://uk.investing.com/commodities/iron-ore-62-cfr-futures-technical?cid=992748
Think I’ve seen Isabel listed as part of our PR contact at St Brides. Maybe this will trigger a reshuffle of resource.
https://polaris.brighterir.com/public/tirupati_graphite/news/rns/story/xq3v97r/export
And the Fodere source material doesn’t really even have to be mined or transported. It’s just sitting in a heap within a few metres of the proposed plant site. Think I got to something like a dollar per tonne nominal purchase cost.
Recent BRES video presentation got posted earlier for anyone interested.
Tries to explain the China/US angle. Also seems clear it’s a big resource.
https://www.youtube.com/watch?v=TS6GCdjyWH8
Dcat, mind me asking how you know the first bit? Think you’ve mentioned a couple of times you thought they’d had some sort of pilot plant before even the one recently mentioned for Kitwe, but I’ve not really come across any info on that during my research.
I’ve been saying ‘Fodere’ all wrong it transpires!
Clearly going to take a while to unfold but intrigued where the $150m NPV, 9 month payback comes from if those were the first figures to jump into Brian’s head. Not sure I remember those being attached to any scenario released so far. I know he caveats he didn’t have paperwork to hand but still I don’t believe for one minute they don’t already have guestimates for the financials.
Surprised there’s still a 3 before the share price so after reflecting on it just bitten the bullet and added some.
Have been annoyed for a while about the BRES investment, not because it’s a bad company but because it cast doubt in my mind about whether the investment in Fodere was truly strategic. This RNS has dispelled that doubt, and the info on the rights in South America is great new info in my mind.
I take the references back to the 100% IRR project etc. with a pinch of salt because those financials now seem largely redundant if that project is not proceeding as previously envisaged. But I’m struggling to see how the next set of financials, when they eventually do come out, will not be attractive. Frustrating that really for the last 2 years we seem to have basically trod water, but what comes now could be miles better than what we might otherwise have had.
As an aside, I keep thinking about Tronox Brasil (not wholly owned by Tronox) who per their latest accounts still have not identified a new local resource given supplies from their end of life mine are about to run out.
Really dropping now. Logistics costs are I think more than half the opex - not sure what oil price they’d be based off though, but lower oil price has to help the financials quite meaningfully. Might also bring the capex cost down assuming there’s a fair bit of energy cost embedded in the construction, who knows. Iron ore price seems to be holding.
Must be getting closer to ‘pushing the button’, surely!
Not going to post for while now, hasn’t done one iota of good since starting. Think time for the company to do the talking.
And yes, my cash number was probably too low. I was really just going for a conservative round number although by the time you turn my £ number to $, it’s maybe not a big diff. If there’s been less physical activity, and it’s been mainly phone calls and meetings, then perhaps the cash burn has been lower than recently too.
Dcat, yes my binary comment was probably not the right way to express my feeling. There have been hints of other aspects but they’ve not yet shown their hand.
Trying to express it in a different way then, I was trying to say if there was confidence in the viability of the project, but it was just subject to the usual uncertainty around permitting, financing etc., then we wouldn’t be at 3p. Obviously it works the other way around too. 3p is just the wrong price. Something relatively small could swing this either way, e.g. another clip of Luis at the mine site to say guys were still on the case would shift sentiment straight away, or something like that. I don’t really care about the share price today, but I do care to know the project is moving forward.
Interesting that the latest addition at Companies House says Fodere issued shares last summer at £645, decent jump from the previous issues.
So if that’s used to value our stake, it’s worth £1.1m. Add £800K from BRES, probably still north of £1m cash by my back of packet calc, that means I get to about £5m for Pitombeiras within a £8m market cap. Even without any titanium benefits, that leaves a decent risk/reward certainly compared to others I look at, factoring how disgestible the capex bill is likely to be. So the question I keep asking myself is whether the radio silence means Pitombeiras is really alive or not. It’s almost binary now at 3p.
Am guessing it would also need to have the environmental approval for the Highveld plant expansion to 15 tons/hour. Comment period finished in September so the report has hopefully already gone in some time ago to the relevant authority. For the original 3 tons proposal, there was roughly a 3-4 month approval timeframe. So that could be soon with any luck.