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KDNC 10% stake in Macarthur [TSX:MMS]

From CEO.CA MMS:

@internalaudit, 1 hr ago, Sun 24 Mar 2019 [UK time 2.35pm] "...However, Glencore has also agreed to release up to 70% of its off-take from Lake Giles in the event Macarthur locks down project from ANOTHER potential off-take partner." [Embedded is an article from Investing.news entitled: Macarthur signs iron ore offtake with Glencore for Lake Giles, 21.3.19]

Note: I checked and the quote is from Investing.news article.

Interesting. Link: https://ceo.ca/mms

Ref: Macarthur Minerals [TSX:MMS] & KDNC RNS, Thur 21 Mar 2019
Link: https://twitter.com/CamMcCall/status/1108704244041801730
-In brief: US$4 billion off-take of 4m tonnes iron ore a year for 10 yrs- Further option for all tonnes next 10."
[KDNC owns some 10% of MMS & D.L Founder of REM sits on the board of MMS]
Note: Clarification RNS from MMS/KDNC on Fri, 22 Mar 2019 re:above - please check]

>HOW BIG IS 4M TONNES A YR AS ABOVE IN TERMS OF SIZE?
Glencore: "We physically market iron ore from 3rd party p r o d u c e r s to customers worldwide-with Asia making up most of our customer base."
"In figures: 2018 -79mt of iron ore sold via our marketing business."
Link: https://www.glencore.com/what-we-do/metals-and-minerals/other-metals-and-minerals

**FROM JARV55 on Fri, 22.3.19 at 10:06 Link: www.lse.co.uk/member-info-asp?nick=Jarv55
Extract from Stockhouse Bullboard: [Note: 3rd party info]
"550m/t available to sell from this mine."

From CEO.CA MMS- Mine to last 26 years [posted earlier]

So, simple maths: 550mt divide by say 26 years =21m/t a year to sell ? [Please check]
So, say 21m/t a year available to sell vs Glencore 79mt [2018] = 26.5% or 1/4 + ? [Just an idea of size?]

COST: "A$55/tonne FOB for magnetite & A$42/tonne FOB for hermite" [At A$55=US$42 approx if £1=A$1.7 & £1=US$1.3]
"High Grade Ore Price: 65% FE = US$98 per tonne or A$140 per tonne."
Link: https://twitter.com/CamMcCall/status/1108704244041801730 dated 21.3.19 [Ann]

PROFIT:
From the Stockhouse Bullboard as above: "A profit of $40-$60 per tonne @68%FE
At $50 profit x 550mt= $27.5 BILLION [or £21.15 billion at £1=US$1.3] [If above US$98 minus US$42=U$$56 approx]

If say, over 26 years of mine life = $1.057 billion a year.
If say, it is 20 year per Glencore off-take mine life time inc. option = over 20 yrs = $1.375 billion a yr.
----------
In £ it equates to £813,076 per year [26 yrs say]
or £1.057b per year [20 yrs say]

----
Peer: IF any co earns a profit [gross: revenue minus cost]= £813,076 say, they could command in the market at P/E 10 = £813m mkt cap or if at £1.057 P/E 10= £1.05m cap potential . If P/E less than 10, then accordingly re-calibrate.
-----
MACARTHUR MINERALS : BANKABLE FEASIBILTY STUDY
19 Mar 2019 announcement by MMS. Link: https://twitter.com/macminltd/status/1108155334927

MACARTHUR LISTS ON US OTC:QB
https://twitter.com/macminltd/109391965056434176 20 Feb 2019 [Ticker: MMSDF]
[Embedded: News release: "BM0 Capital Mktd: 2019 has gone from a yr where we were looking to replace marginal
tonnes to one to one where we need to incentivize additional higher cost material."

Please note:
I have not checked the "500mt available to sell" figure yet so it is 3rd party data and DYOR/Please check.
Imperative: All prices of iron ore or any other resources for that matter can rise or fall so an important point and CRITICAL to note so,1 has to continually check latest via research etc an

Look at what I have just found:

"Oct 31, 2018 - Tweet by Cameron McCall, Chairman of Macarthur Minerals [Canadian listed].
"Cameron McCall is at Cadence Minerals Just Now London. Location map screen shot."
https://twitter.com/CamMcCall/status/1057712453088436225

"Oct 29, 2018- Tweet by Cameron McCall: "TALKING DEALS WITH ANDREW SUCKLING with pic."
https://twitter.com/CamMcCall/status/105703618755117056 [Pic of McCall & Suckling at a restaurant."
Andrew Suckling is Executive Chairman of Cadence Minerals Plc [formerly called REM plc]
www.cadenceminerals.com/about/board-and-senior-management/

"Sep 27, 2018-Tweet by Cameron McCall: "We keep getting GREAT RESULTS."
[Embedded tweet of PR/Announcement/GlobeNewsWire which appears to be about identified 18 high priority bedrock conductors from aeromags etc and mention of "Exclusive ADVISORY agreement with UK based CAPSTAN Capital Partners LLP to SECURE the necessary funding required to advance the co* SIGNIFICANT iron ore projects located in Western Australia."

Capstan Capital Partners UK
www.capstan-capital.com/firm/partners "Senior advisors John Komblum-Chairman of Germany at Lazard LLP."

"16 Nov 2018: McCall tweet: Great results for Macarthur from insiders and INSTITUTIONAL INVESTORS that understand the Macarthur story. I hope the short sellers end up in agony." [Embedded:Macarthur closes oversubscribe private..."]

"Feb11,2019;McCall:INSTITUTIONAL INVESTORS site visit of our iron ore assets last week. Pics shown."

SHOCK ANNOUNCEMENT:
"Mar 21,2019: McCall: "Special thanks to Joe Phillips, OUR ADVISORS and our b a n k e r s for this company TRANSFORMATIONAL DEAL. I hope ALL INVESTORS can ADD and this co can start TRADING based on the TRUE VALUE of its ASSETS and THIS DEAL. Embedded is the announcement about the Glencore deal with Macarthur of US$4 billion for 10 yrs etc at 4m tonnes at yr." The Canadian ann. said that there is an OPTION to extend a further 10 yrs for ALL tonnes by Glencore -please check.

IN THE TWEET WITH ANDREW SUCKING, an investor tweeted within:
"29 Oct 2018:"...Extension of private placement doesnt SEEM VERY PROMISING. Many UNHAPPY investors out there."

CAMERON MC CALL*S Twitter: https://twitter.com/CamMcCall to check the above.
Also, interesting further to the visit to Cadence plc, meal with Andrew Suckling as above are re-tweets by McCall of David Lenigas*s tweets including:

"Excellent that Macarthur Minerals has come back to trade after a short halt trade. People need to Digest the significance of BINDING LIFE-OF-MINE off-take agreement with GLENCORE for Macarthur*s iron assets in Australia."- 23 hrs ago, Sat 23 Mar 2019 [Founder of REM>KDNC, D.Lenigas]

NEWS EXPOSURE: "SMALL CAP MOVERS: Cadence Minerals shot up 163% to 0.3p following news its associate co Macarthur..."-18 hrs ago, 23 Mar 2019 [Sat] From This is Money: Daily Mail
https://twitter.com/smallcappick/status/1109199547799166989

EARLIER POST: David Lenigas tweet with

some £730m mark @40p at a stage when it is awaiting PEA for Cascabel. A dramatic change came when Newcrest and BHP bought into Solgold, the last transaction was at 45p [BHP]. I note from observation that the stock is no longer under heavy....with 2 majors on board and an impressive array of brokers who have produced notes eg JP Morgan.

I mention Solg as an example because it challenges comment that no major would invest or takeover a co that has no PEA,PFS etc. Nicholas Mather has said it is not necessarily always the case?

If one converts £730m into US $, then it is clear that the re-rating for a Tier 1 [not disputed per articles?] has taken place for a US$1 billion mkt cap?

On the forums, Solgold was at 1.5p with a market cap of £8m when they first started their journey into Cascabel, Ecuador. Then, someone said the £8m mkt cap was an over-valuation.

So, many investors have their own idea that are opposed to the market*s determination and standard analysis.
From some broker reports they do reveal a few of their metrics and a lot has to do with valuation metrics.

This is very strongly disputed and new ideas are exchanged round the forums.

In the end, if there is a big discovery, then majors will step in. If one talks of MMS, it is in isolation so an example has to be given eg Solgold. It would be better to use a iron ore example but it would not be suitable to compare it to a major eg Rio who is also in iron ore. They are no longer exploration juniors or coming producers.

In general, when institutions enter, then the stock is no longer dependent on retail and the accompanying volatility.
Then, the finance industry valuation methodologies would come into play - the real finance world values deposits by standard known methods and this is consistent with investment bankers who do the cals for IPO*s esp US co*s.

Investors are free to follow their own views.

However, the stockmarket looks forward as is commonly known. Today*s price of Amazon, the market leader is known, its is the tomorrow*s price via results that analysts are interested in via forward analysis. This is a crowded field. However, in AIM, research of the City type is not freely available unless one is a private client. So, this is where opportunity lies and people like Rick Rule of Sprotts have made some spectacular gains from major discoveries as defined by the industry.

Suffice to end this review with: no one knows what will pop up next. As in stockmarket maxim: Always expect the unexpected rings true.

News.
Sat 23 Mar 2019

The Founder of REM>KDNC:
"Excellent days trading of MacArthur Minerals in North America yesterday after the Glencore iron-ore off-take announcement. 33 million turnover in Canada & US markets. @macminltd @CamMcCall $MMS." - 6 hrs ago, Sat 23 Mar 2019. Time now in the UK 12.25 noon. This is after the Clarification RNS, Fri, 22 Mar 2019. [Twitter]
https://twitter.com/DavidLenigas/status/1109340192576540673

2) "No, not at all. I am still supporting REM through my efforts at Macarthur Minerals etc. The KDNC board are smart chaps. And KDNC holds a lot of good assets.The problem is that people get impatient. BIG DEALS take a while to sort out." https://twitter.com/DavidLenigas/status/1108952017777520641

Comment:
The tweet by David Lenigas of 21 Mar 2019 is interesting as it marks the day that Macarthur Minerals [Canadian TSX listed] issued the announcement of the Glencore deal comprising 4 million tonnes of iron ore per yr for 10 yrs and then an option for another 10 years for ALL tonnes which amounts to US$4billion [10 yrs]. Cadence Minerals [KDNC] owns 10% of Macarthur [MMS]. However, please read both the 21.3.19 & 22.3.19 RNS as due diligence for completeness.

The 21 Mar 2019 tweet is the most interesting as the Founder has not mention REM in any major way since the rejected Bacanora Minerals TAKEOVER at some 88.5p-£1 [see BCN RNS mention of these 2 figures].

I have already posted on this forum very recently with link that our Founder sits on the board of MMS as an Independent Director.

This Glencore deal has captured the imaginations of investors and yesterday, This is Money published under Small Cap Movers about the above deal. The share price moved upwards to 0.3p from 0.105p from recall with a high of 0.49p.

This marks a CHANGE from the days when KDNC received no interest due to the "black cloud/s" mood & commentary from observation?

Where is REM-KDNC headed?

I noticed that the Glencore deal came out of the blue like a thunder bolt. I had researched MMS on this forum and concluded the capex needed did indicate the project was rather major? There is little information that I could find further to this. However, I have now obtained vital data needed with thanks to Jav55 who provided a link as to total tonnes available to sell and from the Canadian forum how long the mine will last etc.

If one takes the case of GGP re: Havieron, no one was aware and 100% sure that a deal with Newcrest was on the cards. Again,it came out of the blue.

I notice that from observation that a few co*s are moving towards this style.

It would make it difficult for traders who may not get timelines etc to provide some indications and momentum as norm?

This is where Research will come in.

Also, valuation models as exemplied by the 4th year Finance student @heHassan on CEO.CA MMS who is doing nothing except valuations.

The layman*s valuation as expounded on Twitter etc may not have foreseen the market cap of Solgold to reach

garyn,

This forum is famous for Sat & Sun discussions that run into pages and pages.
No one was interested in KDNC due to the black cloud.

As for Solgold, I recall seeing on one of the forums that you said you did make a mistake [para phrased]. I am bringing this up because it is an example of the high moral ground ie it is to save people. However, there was no need to write an article about it because it could have been moth-balled for a while given N.M is reputed to be worth $100m and the directors did provide a loan. I am saying that if you look at co*s, then in turn, the record must also be looked at.

In the USA, they record the doctor*s record of how F and for Analysts as well with ratings.

No, I had a think while having dinner and I decided that like in the past, KDNC is now attracting great attention and the weekend if the past is repeated will be one in which, by Monday, the shakey people may be heading for the doors.
Reason I dont know.

There is actually NOTHING to comment and try to say that the Canadian Exchange were not this or that. Its not even in our jurisdiction.

I leave with giving the people here a link to the Canadian MMS forum. One will not NO ONE from here is posting over on CEO.CA MMS [MMS is Canadian listed although KDNC owns 10% stake].

Read, people to see that Canada being a mining jurisdiction are more savy and cognisant about these matters as it is not something they are not familiar with. On the London Stock Exchange, the rules are different and if MMS were London listed, I do not think there would be this or that UNLESS someone tried to find a small way in.

O.K Garyn, we come back a long way on these forums. Next time, I will keep quiet and let people try to ? others with this was not complied with and that. How can any Britisher be legally qualified enough to know Canadian Exchange compliance inside out? Even British solicitors in the Big 4 would not be able to do it as they do not specialise in Canadian Security Law.

OK people, this is the link to the Canadian discussion which is pretty educational, positive and helpful.

https://ceo.ca/mms They are now discussing BFS for Moonshine & Ularring hematite, so obviously MMS is getting on with it. One is a finance student and they are discussing valuation theory. There is no KDNC going to 0.10 etc.

Sorry, not editing as I am going to turn in soon. So everything is "It appears", "It may be" "It could be" "Potential" etc.

garyn

I have gone to have a look at Bacanora off-take agreement with the SGRF of Oman [Ref: RNS 16 July 2018].
Without going into the nitty gritty, an off-take like Sirius is par for the course in obtaining financing or does help the process. I am only talking about off-take in General and not in particular.

As a photgrapher by profession, I am not sure why you have taken up your boss*s post as former Sherriff of AIM?
When I visit a forum, I see you want to report PCGE*s RP? Cant escape on Twit either. Your fav is valuation and unless licenced by the FCA it is another can of worms. The Broker/Nomad said to report one gent who said that Solgold was over-valued at £8m @1.5p?

What I notice is that when people love their stock they dont have anything to say about it. When you said that BCN is back by the $20million or £20million as the case may be, I was quiet about it.

This is the part I dont understand.

There has been a clarification RNS and I note there are cautionary disclaimers which you said there werent.

Many people have had a tough day and when you posted, then, in fact, there is no need to review the Canadian Securities Exchange compliance.

Semantics is an art and I deal in the legal position.

Is the Glencore deal LEGALLY VALID or not valid? Is there a contractual agreement or not?
No one should be speculating as no one has seen the contract. Perhaps the Canadian Exchange would have seen it?

I try to avoid but you seem to love to become the purveyor of compliance?

In fact, there was no need to comment. The RNS or ANN/PR from MMS/KDNC and Reuters is clear.

The "material" agreement has NOT been retracted if I read the Reuters Brief but I dont have it with me to quote verbatim.

OK, lets call it a day.

You are not going to answer directly to the direct question.

So, let us leave it with that and we take the Reuters clarification brief.

If you are not happy with that, then you can take it up with Reuters.

With thanks and good night.

Fri, 22 Mar 2019
I notice if a stock is very popular, this happens very often now as said ie REM, SOLG, UKOG, GGP and now Round 2 KDNC?

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