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*19th Jan
Worth noting EIA is for the prospecting licence on the new land only
Re Zeb EIA, this is to turn the licence in to a Mining RIGHT and they confirmed it was received in 29th Jan 22. So should have feedback on this EIA & mining licence soon
“ The Company submitted an application to convert its existing Prospecting Rights to a Mining Right to the South African Department of Mineral Resources (DMRE) as announced on the 30 August 2019. As part of the application, the Company is required to conduct an environmental impact assessment to understand the impact of an open pit operation to mine the nickel resource. The environmental impact assessment consists of various specialist studies which are currently underway”
I have been in for a year and well researched. I found a semi recent pack for Kalana licence owned by Endeavour which Carl referenced in an RNS. Note:
- 1.8moz
- Endeavour paid $120m v CGO $1.8m
- Cgo also have possibly the same again with Ntiela
- Production 150,000oz pa
- Kalana opex is $901poz
- So profit $900oz
- NPV5% $330m
- Low emissions
It is not inconceivable that:
a) aeromagnetic & geophysical analysis upgrade Garalo further
b) Ntiela ends up being another 2m oz given there are two veins which extend in to Ntiela
I’m hoping for 3-5moz between the two
https://twitter.com/apathnottaken/status/1438961191964000259?s=21
https://twitter.com/apathnottaken/status/1386758063634280450?s=21
I put together a research note pinned on the telegram group if anyone is interested
Early Bird
Even better I think. $100 - $30 costs = $70 profit generating $12mpa EBITDA.
Coal $170 = $140m profit per tonne, c$24mpa EBITDA.
That’s on current deals which are on hold
Even if Chinese deal happens & other deals disappear, should still be similar or better - so $24mpa
Add in gold, $12mpa EBITDA
THATS $36mpa
$360m on 10 x multiple
And this is conservative imo
Those results were reported sept 2017, followed by assay results.
I’m referring to 12 drills reported in Aug 2020 “ A 12-hole drill programme is expected to commence in October 2020, and is expected to be completed in March 2021”
Which then got pushed back while the asset transfer & listing happened
I wouldn’t be surprised if it gets to $2. Multiple RNS’, commodity boom, 12th largest nickel resource, low Capex, low opex
Zeb is sulfide resource which is more climate friendly than laterite which is majority of the worlds nickel resource
In addition, preliminary tests suggest 80% recovery from acid leaching, which is also more environmentally friendly than traditional mining.
Given this is also a bucket and spade type mining operation, it further improves the ESG situation
I would argue that all the majors in the local area would be interested in Zeb purely to reduce their carbon emissions per tonne produced
Environmental report will come through very soon
Drill results will also come through very soon
I’m expecting multiple rns’
I have pinned some research slides to the telegram group if anyone is interested.
https://**************bKLX06d-k2RkNmY0
If there are spreadex positions closing it is because it’s end of the month and Spreadex want higher margins
Aussies were in severe lockdown for two months, give them a break. And SP held up pretty well all things considered.
I see this as a positive - expediting drilling. These drills can do a lot of work in a week or so
I would expect an update relatively quickly
The co did this in 2017. They waited until the last day to notify the market of a new nomad.
Logically it shouldn’t take more than 2 weeks to find a nomad, it’s relatively easy
From a technical perspective, price action has tapped the bottom of the trend all week. That’s good! Means we can start to rise now that liquidity comes back to the market.
A couple of positive RNS’ and we will rise relatively quickly
There haven’t been any significant developments from a financial results perspective...that’s factual.
The PSC extension wouldn’t affect the financial results!
I think we all need to relax. The PSC will be extended and we will see some positive price action in the coming weeks
“Sufficient quantities” refers to the fact a mercuria will assess the grade, send the information to the receiving plant, the plant inform mercuria of the quantity required to make it efficient processing, then mercuria pass that info on the VAST so that they can meet the requirements.
150 tonnes per day is the current target. That’s probably 150 “carriages” full of rock, so not exactly difficult as they filled two carriages in the recent twitter video
Technically speaking, we wanted to see the SP test 0.19 again. Price action was floating around mid of the trading range. It’s spent two/three days testing the low of this range. Note SP always drops at this stage of the month in anticipation of small placing for atlas. Once that’s done (hopefully not done this month), price will rise.
What would be great is to see a rise followed by an RNS confirming production targets being met to kick SP up a bit more, then drop an RNS re primary finance to kick it in to the next trading range starting September...
https://docs.google.com/document/u/0/d/1-ikgyVDykX_emTT729S6XJk0au-wxaS3HrRrEflXv1c/mobilebasic