Member Info for Metalhead25

Hi Rock. Back when I was holding I sent the company an email asking about the possibility of getting and using some other land at Burwell. They replied that they had been looking at other sites in the area, but that those would effectively be new projects, as a grid connection application is tied to a certain parcel of land. They reiterated their belief that once the land sale is finalized, the ultimate owner will upgrade the value of the empty plot by consummating the lease. That was on 19 July. Hope that helps.

The traders just see “2-3 months” and think “I’ll sell now and get back in nearer the time”. The trouble with that is you can end up having to pay more to get back in than you sold for. I would say that risk is particularly great with this share which is so substantially undervalued and with little downside risk. Much better to sit right and relax

If I had any spare cash in my ISA I’d be joining you!

Also, I thought I’d ask Ben on Twitter about the lack of XRF. He replied that they haven’t taken the readings yet as they want to get the core cut first etc. I’m happy enough with that as an explanation. I sold some shares this morning but have now bought them back again

I agree it’s open to different interpretations. What worried me was the combination of factors mentioned in my first post. I am comforted by Keith’s comments on visibility and I regret my use of the term “dud”, which in retrospect was too emphatic

Maybe it was already planned but the latest RNS reads to me like it’s a new decision made in light of the drilling. I’ve looked back at earlier releases and the 10 June and 5 July releases contain some flexibility about number of holes but certainly suggest to me that the primary plan was 1 hole at each target

Hi legalwolf. To be clear, although I have a negative interpretation of the decision to drill again at target A, I’m certainly not accusing them of doing it as a “masking” exercise. I just think the most likely explanation is that they want another chance to get something good out of area A, that’s all. There’s nothing wrong with that, but it would imply that they’re not very happy with hole 1. The plan was to do one hole in each of the three locations as proof of concept. If they were confident in hole 1, I believe they’d have stuck to the plan. The most likely explanation for deviating is that hole 1 is not going to prove the concept. All IMO of course. But I want to be clear that I like Ben and the company and am not suggesting they’re doing anything wrong

Hi all. I’ve tried hard to look for positives this morning but I’m afraid I think all the signs are that this hole has found nothing much:
- We were told pre-drill that KAV would have pXRF devices on site. Yet no mention of XRF readings in the RNS. Why? Most likely explanation - readings not encouraging.
- The RNS contains only a very lukewarm references to “sulphides” being visible. It doesn’t say “massive sulphides”. It doesn’t give any indication of quality or quantity or type. I remember that Keith said a week or so ago that they’re virtually guaranteed to find sulphides of some type and to some extent. So what would you say if you’d found nothing encouraging? You’d say you found “sulphides”.
- I don’t read the introduction of a second drill at target A as being positive. I think it means they know hole 1 is a bust and are making another attempt to salvage target area A.
- I note the RNS repeatedly describes target area B as the company’s primary target. I’m pretty sure that language is new. To me it says that they’re preparing the ground for the revelation that A is not much cop.
- The RNS says we’re not going to get lab results until the completion of the whole campaign (A, B and C). That means we’re in for a long wait. But you also have to ask why. I think it’s to avoid releasing results on hole 1 / area A first up and in isolation.

Now, I know there’s a long way to go. Area B has much higher conductance and could be good. But I do think this looks like a bad start.

We’ll see - it’s a nice problem to have (and I hope we do!)

To me the very notion of a “proof of concept” drill tends to imply proving the concept to somebody (i.e. most obviously majors/JV partners) - I suppose it could be just proving to the whole world so that we then find it easier to raise capital or loans, but I don’t think that’s the natural interpretation

I think if the three test holes are good the aim will be to get a JV with a major on the basis of just those holes. I say that because of the district-size scale of the KSZ holdings. That scale means both that a major may be sufficiently excited to JV without KAV doing a lot of drilling first, and that an early JV is particularly advantageous to KAV, since doing widespread drilling alone would be a big ask

This board is just awful at the moment. There are some sensible contributors but to find their posts you have to wade through a swamp of gibberish from a handful of giant children - all bickering, crowing, bullying, lying, and forming cliques with little leaders and followers. It’s pathetic and frankly embarrassing. The grown-ups think your posts are ridiculous. Nobody outside your little game is listening. Do yourselves a favour - take a break from this board and go on a spelling course.

I suspect KAV are at or about target depth and have been dragging it out a bit today so as not to RNS on a Friday (and Friday 13th at that…). They told someone on Twitter today that they’d RNS when they had something “definitive” to say - that suggests to me that they did have *something* today. Anyway, this is speculation, but if correct then the fact that they wanted to wait until Monday seems encouraging - if the news was terrible they might have been tempted to sneak it out on a Friday afternoon!

Relax, nothing goes up in a straight line. 30% up, 10% fall back. It’s all good

I don’t see any reason why drilling couldn’t already have started. The start of drilling seems unlikely to warrant an RNS

The Twitter comments certainly suggest they are still drilling. But I can’t discern anything about how deep they are

Weren’t there a load of warrants which might be expected to churn around this level?

Well I think Corcel bought the debt specifically in order to get Wowo from them in settlement. So it’s not a case of half a loaf - it’s the execution of the plan.

Presumably not - if RMI could have sold for more than the debt and then paid the debt in cash they obviously would. Similarly, if they could have moved it to a profitable DSO operation with third party finance they obviously would. But I think the idea is that Wowo is worth more to Corcel because of synergy with Mambare. In the sense today’s transaction is efficient

Agreed!

For sure a direct shipping operation will require lower capex than full mining and processing. But it still requires substantial capex. And there’s a lot of work to be done before any shipments are made. You’re looking at a timescale measured in years even on a best case, with costs ramping up in that period. That is exactly why the company’s own strategy is to produce cash from FGS to fund the mining projects. Much as I’m sure he’d love the chance, you can’t just send Scott in with a shovel and a wheelbarrow!