Member Info for moneyhawk

34Deg - thanks, that makes sense. And yes the quanity we're recovering is quite unbelievable. Perhaps more surprising though is how inefficient current chrome recovery is, if we can get this quantity from discarded material.

bobbill - varys of course with metal prices. But for a rough ball park figure FY2018 we had 46k tonnes and revenue of £4.6m, so thats about £100 a tonne for chrome concentrate.

I don't think we're going to see any FOMO this time around. Been too many results that haven't lived up to market expectations, and what we can expect to get from the farmout is very unknown at the moment.

But once the masses see how the industry views and values our prospects with this farmout, and realise we've got a 2nd farmout coming, I'd expect to see FOMO on the HRZ farmout.

Just wondering how you got on with the fine chrome figures?

I'm struggling to make sense of the numbers and where the chrome is coming from to be honest. From what we know (or think we know from the info we've been given), is that fine chrome is being recovered from tailings we've already recovered course chrome from, and being tailings they would have already had a first pass at chrome recovery.

The quantity of tailings varies in the news releases, but say we've got approx 1m tonnes, which roughly fits with the processing capacity and length of time to process for course chrome.

From those tailings we've already produced 156K tonnes of chrome concentrate. The remaining quantity would then take roughly 3 years to process at 25k tonnes a month, and at 5k tonnes of chrome concentrate a month would mean we will have recovered over 300k tonnes overall from 1m tonnes of tailings. And also means the tailings started off containing at least 30% chrome.

Now we're talking about chrome concentrate, not pure chrome, but that seems a remarkably high % for material that had already had chrome extracted.

There was talk of bringing in 3rd party material to DCM, but its never really been that clear what actually happened with that or how much was bought in, and there's been no mention of continuing course chrome recovery alongside fine chrome at DCM.

No sorry TBTT, but shard would probably be a good place to start being our corporate broker.

Forgot that there were also some warrants with the sable acquisition/placing. 1.5m at 3.38p, but hardly anything to worry about really.

Shells updated strategy to 2025 includes:

"invest, on average, $30 billion of cash capex a year over 2021-2025 (excluding major inorganic opportunities, but including minor acquisition spend of up to $1 billion), with a ceiling of $32 billion a year."
https://www.shell.com/media/news-and-media-releases/2019/management-day-2019-shell-strongly-positioned-for-the-future-of-energy.html

Some big numbers there, would be very nice to see someone with this kind of spending power coming on board to develop Icewine :)

A bit out of the price range for warrants don't you think? Lowest outstanding warrants are at 4.75p, but most are at 6.12p.

Still a little way to go before they might come into play. But only 77m in total which isn't that significant compared to the total shares in issue, and I think most will be pretty happy to move up to 6p+

Very likely its relevant to the conventional farmout. The AGM presentation gave the indicative forward work program for the HRZ, which included "Take pressure cores coincident with conventional drilling locations".

When we get to the know the farmout details and what drilling locations are agreed, it may give a clue as to where they think the HRZ fairway is, if its not announced separately.

Bdogg, all we really know is that the revised fairway covers approx 50% of the acreage, and there's no indication how far Icewine 1/2 was out by, or whether the bulk of the revised fairway is north, south, east or west of franklin bluffs. But reasonable to assume that if it covers 50% of the acreage, at least some of the conventional prospects identified so far will be sitting on top it.

Yes just finished listening to it, very positive.

Interesting comments on the how the market values them. Suggests very similar things to DW, that there has been interest from the industry who understand the potential, but the market doesn't at the moment. Also says that they're going to the US to raise awareness of their US assets.

I'm being quoted 3.3p to buy, so I'd suggest that every trade at 3.3p and above is actually a buy even though they're flagged as sells on here. Ignore the red and blue colours and just look at the trade prices, its perhaps not as bad as it appears.

Some good info on PGMs here. Page 15 shows how much the basket price is improving, up to about $1,250oz, mainly due to palladium. Seems like a good time to be doubling PGM output.

https://www.sfa-oxford.com/media/1530/sfa-oxford-edition-8-the-platinum-standard-may-2019.pdf

Yep, that could have been the cause of the bid and ask moving up further towards the end.

Just shows really how tightly held most of the shares are. 1.8B shares in issue and we rise 14.5% on volume of just 7.5m.

Either is likely Sumo. The RNS today would have caught a few out, and what happens tomorrow probably depends on who's been caught out the most - the 'sell on news' or 'buy on news' brigade.

But really it doesn't matter too much to me. The key driver is the earnings growth, with profits forecasted by shard to be £40m+ in the next 2 years. Apply a modest P/E ratio to that and it would seem more likely than not that the SP will be moving upwards over those 2 years, but don't expect it to rise in a straight line.

I've no objection to investing in an AIM listed company, but yes you do need to be wary and I'm becoming more selective about where I invest. Bigger capital gains can be made on AIM stocks than is normally possible with larger companies, where really the priority is paying dividends over creating large capital gains, so good to have as part of a portfolio.

The thing you need to remember with companies listed on AIM is that the market was created to allow small companies an easy route to raise funds to expand and grow. i.e. raising funds through placings. So generally I look for something that has exceptional potential (such as here), or a company that is already generating revenue.

What often happens is that AIM companies raise the funds for whatever great project they've got, and then do nothing constructive with those funds, so it just becomes a matter of time before the next placing to raise some more funds. Small PIs are the ones that typically lose out from this as they haven't appreciated that the company they've invested in doesn't actually have the money to do what the great plan requires, and that there will be another placing.

TT, intresting point about Hernic. It has been said they will roll out the fine chrome to our other operations, but why would we bother with Hernic when we don't earn anything from the chrome there? If we can get such a high recovery rate from previously processed tailings, it must look very attractive to the new owners at Hernic and a very easy route for them to increase profitability. Seems like a good bargaining position for us to be in to get a better deal on the PGM profit share.

OK, thats closer than I thought, I was thinking it was more like 50-100 miles. 25km probably would count as in the region. But thought it strange theres no mention of GLR this time or the discussions that were started, wouldn't have been out of place to just say they were still ongoing.

As for the timing of the RNS and possible other updates, who knows. Sometimes JLP seem to issue strangely timed intraday RNS's just because they can. But yes, the last time this happened we had some very good news the following morning, and they have been talking about a possible copper/cobalt project in zambia for a long time now.

Also of interest, re additional material for Kabwe:

"Jubilee also continues to engage with various potential suppliers of run of mine zinc rich material within the Kabwe region"

Is Star Zinc within the Kabwe region? I thought it was quite some way, and no mention this time of GLR/Star Zinc.

Will be interested to see what you work out TBTT. The platcro plant has 3x the capacity of the DCM plant, I think the fine chrome process is more significant for both current and future projects than most realise.

All seems good, and obviously positive that we have confirmation of Platcro PGMs starting.

But the fine chrome looks very interesting. Remember that this is effectively the second pass with the same material we've already extracted chrome from. Looking at the annual reports we can see that the best year at DCM was FY2017 where 78K tonnes of chrome were produced - average of 6.5k per month. From the new fine chrome process we're expecting 5k tonnes this month and a further ramp up next month.

It would seem from first impressions that the fine chrome process could be getting on for doubling our extraction rate.

Apply that to Platcro Chrome and the figures that already look good could become much more significant.