Member Info for Metalhead25

Horizonte Minerals (HZM) is closer to producing nickel than we are - has finance etc. Still, their market cap is £235m…

Thanks Sniper, and to you. Feeling like it’s starting to come together.

Have to say, I don’t recognise the negative comments we sometimes get on here about Scott and James (based on historic or separate experiences). Since I’ve been here they’ve done what they said they would do

Great news this morning. Very happy to see the nickel projects moving forward. Just one of the areas where we are absurdly undervalued! An explorer who found this much nickel for the first time would be valued much higher than our entire market cap, yet we resources which have been worked on over a long time and are quite well understood, and a market cap of only c £5m. Take Amur Minerals (AMC), for example: very nice nickel resource but in the a**s end of nowhere with all sorts of logistical problems. No other assets to speak of. Market cap £25m. We have lots of room to move up!

Reckon we’ll know by end of January whether we have lift off now or must wait a little longer :-)

To be fair, I’m pretty sure the scoping study already says “less than $60”, doesn’t it?

Two connected facts about this share:

- it is little known and thinly traded
- it can move a long way on fairly low volume

Consequently, it is reasonably common to see moves in the share price which are big enough to make people think something must be “going on”, but in reality all that has happened is a fairly random and only moderately sized uptick in buying, followed by a bit more buying on the false hypothesis that something is “going on”. Then usually if no news appears, we drift a little the other way again.

I am relaxed about this. I am here for the projects, which in my view are worth far in excess of the market cap. I am happy to be patient and when the news we are waiting for does arrive I trust we will see a different type of move

Iron ore 62 up again today as well

Moneymaker, I often think back to how confident Ben was of getting a major partner, even just based on drill 2 (the f*cked up rocks). I think it’s pretty clear the board think this company is going ballistic. Hopefully they’re right!

Maybe the bid sneaking over 1.50 this morning triggered a bit of selling from people who had targets around there. As long as Scott closes the peaker deal, all prices in this area should be history soon enough!

Yeah, whatever else anyone thinks, they certainly need to make it much clearer very quickly what the situation is and what may need to be done.

I just can’t see how the last batch of money could be running low. I suppose it’s possible that the financial issue is not quite that, but maybe instead the loss of production puts the company in breach of covenant with the lender or something? Or, could it be that the issue is with the 2021 hedge: the counterparty won’t roll it forward far enough? We did contract to provide x tons of copper by the end of 2021, after all. Or maybe it’s something much more minor. Just be clear about it!

Quite a lot of speculation on here that the above phrase is foreshadowing a possible fundraise. A few thoughts about that:

1. Can it really be the case? The company raised $22m just two months ago. Twenty-two million dollars. They can’t possibly need more in the next month or two, surely?
2. If I’m wrong about 1, that to me implies an issue which goes far beyond the dilution associated with a new equity raise. Specifically, it would imply such a combination of rampant costs and ultra-precarious revenues that the business would seem to be at greater risk of failing completely than flourishing. You can’t raise $22 million, notice a problem with an escape route, couple of people catch covid, and whoops you’re out of money. That is not a plausible state of affairs, even for a company in (late) turnaround.

I don’t think there can be a raise coming. But if there is, the board have some serious explaining to do

Well, I mentioned after the “dodgy fire escape, lost 4-6 weeks production” RNS that I was becoming increasingly concerned that these things keep happening, and I feel more that way today.

Was it the company’s fault that a stope collapsed in March 2021? Probably not. Was it their fault that they hid the collapse from the market for ages and that they were so vulnerable to such an incident that they then delivered *less than half* their target production for the whole year? Perhaps.

Was it the company’s fault that work was identified as needed on an escape route in December? Probably not. Was it their fault that the discovery of that issue resulted in development and production work being massively scaled back for a month or more? Perhaps.

Is it the company’s fault that some contractors caught covid? No. Is it their fault that they are so vulnerable to something so predictable? Perhaps.

These things do keep on happening. Sometimes it feels like Rambler is getting closer to being a stable and profitable producer. But sometimes that feels as far away as ever

So, the “Year of Discovery” begins. Ben has confirmed on Twitter that drill 4, currently at a depth of 350m, will be resuming early this month. We have about 225m to go. Depending when they start and how quickly they go, I would think it might be done in about 3 weeks, but with the possibility of a positive result before then.

If we hit visually identifiable massive sulphides, the share price must surely take off. We have 8,800 square kilometres of land, packed with gravitational and magnetic anomalies. It is truly district scale. If we can show there is one massive sulphide deposit there will be more. We should have no difficulty signing up a partner with deep pockets to help us explore further. If we keep finding deposits the sky is the limit.

On top of the massive sulphide angle, we have hints that the Great Red Spot could be an IOCG deposit at depth - if so, again, it’s almost too big to contemplate. And again we may get some further evidence of IOCG mineralisation from the current drill.

Then we have all the other exciting projects!

If ever there was a potential millionaire-maker, it’s surely this

DSO iron ore up 7% today, at 120

https://tradingeconomics.com/commodity/ironore62

Happy new year, and may this board stay as pleasant next year as it has been this year. You’re a good bunch :-)

Hi JP, nice to see you here. Enjoy your contribution on Kav so your presence here an encouraging sign for me. You too, BCB!

I agree the mineral content of the cores is unknown until assay results, but a huge part of the unknown when drilling for massive sulphides is whether you’ll hit any at all, and it seems to me that in this case we know they have, yet the share price didn’t budge. Also, as with Kav (although perhaps not to quite the same extent), it seems that success on drill 1 has wider implications, in that we have a large geological area to go at where one VMS deposit is likely to mean more. Looks like a significant misalignment of risk and reward to me, at the moment

Thanks spud. Yeah hiding in plain sight summarises exactly how I view it

Hi all. Bought in here at the bell, for the first time. Just thought I’d say hello.

I don’t understand why the market hasn’t reacted to the visuals of the wishbone core, or to what Darren has said about it!

Any sustained increase in shipping costs has to lead to an increase in the iron price cif China, not necessarily immediately, but producers aren’t going to ship ore to China at a loss so over time if shipping costs are high the cif price rises. Yes there can be volatility but we are well placed as in the grand scheme of iron producers we are (a) near to China, (b) producing DSO, and (currently) (c) nimble enough to delay production if necessary if the fob price is temporarily down

Not convinced by the leak theory, as we seem to have moved on very low volume today. Am sure the news will come soon enough, though