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I dont see the downside to the deal personally.. if you look at it purely from a newsflow point of view it has to add quite a bit of attention to the company.. opens UFO up to new investors that might not have been interested before.
Quite clearly technical trading continues to be the dominant force here.. the downtrend is firmly in tact.. even with two pretty decent updates the downtrend has stayed in place.. the selling on the JV news was pretty obviously coordinated..
lets hope UFO pull another rabbit out the hat soon and this trend can get broken.. or its a another leg to a lower low I am afraid..
Yes Chris.. you are again correct.. "Hard to keep up with really:)"
UFO has proven:
Silver
PGM's Rhodium / Palladium / Platinum
Iron Ore
UFO has yet to prove
Copper / other base metals
Gold
Lithium
So yeah its hard to keep up as UFO has them all..
Yeah on the face of it .. its right.. weve not given anything away.. we were never going to get around to exploring it anyway lets be honest.. but if they find a tonne of Li over there.. then they pay to develop it whilst we pocket 50% of it..
Clearly Hanc0ck is our primary focus.. I would lke to see a few more of these come in for the other areas.. EH etc..
@Nap yeah i remember talk of the re-test.. I dont think they ever published the results ? i could be wrong ? i reckon Lithium discovery would have been a big deal for UFO..
Funny old bit of trading in the last hour.. a load of sells prior to the news.. i have to laugh how we all find out about the deal before they publish the RNS..
Seems like a decent deal from my pov.. we dont even know if Lithium exists at Pinderi and we are not paying a bean to find out ..
+ its only for Lithium.. so if its a duster then no skin off our nose.. Errwarra will just have bought $500Ks worth of UFO stock at a premium.. lol..
UFO spreading the sh*t far and wide lol...
@Tv the numbers below are from the April11th RNS .. they detail the year + the amount.. the total is £817K
· T-1 2024/2025 CM contract - c. £183,000 gross profit margin income;
· T-4 2026/2027 CM contract - c. £312,000 gross profit margin income; and
· T-4 2027/2028 CM contract - c. £322,000 gross profit margin income.
@ Hawaii I agree .. Vast is pretty much worthless as a company.. of course it could go completely out of business.. like so many small producers its got its self in a debt death spiral..
Its a punt as you rightly say.. the diamonds are really an urban myth.. the main thing here is to get production up and stable and keep trying to fend off the wolves that would seek to liquidate the assets.
Time will tell indeed.. but at this point its a gamble for sure.. Binary really ..
The Latest RNS is not very clear on this .. but the keyword is "totaling c. £817,000 until 2028" in the text.. if you check the RNS from 11th April it is clear that the £817K is the total up to 2028..
· T-1 2024/2025 CM contract - c. £183,000 gross profit margin income;
· T-4 2026/2027 CM contract - c. £312,000 gross profit margin income; and
· T-4 2027/2028 CM contract - c. £322,000 gross profit margin income.
However, this is in addition to the £308K CM Contract + StatKraft agreement pending of potentially £405K PA Minimum
So this very roughly adds up to a potential of £1M + Gross Profit Margin per annum. but its very dependent on the uptime and generation of the site. Also we dont know the Annual Net Profit Margin which is where the potential issues might be as Kread correctly points out.
Mast is still a gamble no doubt.. given a very rough calculation I would say this trades at a potential EPS of £0.0007 giving a P/E of 6.5 if you take into account a Net profit margin of 20% (so for this sector P/E of 10 is about average) so we would be trading around 1p if I am correct.
But stocks like this are not about P/E and Net profit margins etc.. they are about getting into a potential turn around company - it all goes out the window if they can get the sites up and running and keep giving the market good news. at 300MW MED could be many multiples of its current position..
Plenty of work to do for MED in the coming year.. keep it coming please MED..
Im not too bothered about today.. its the general "theme" thats important here.. if Kibo stay away from the sell button for a while and updates keep flowing then at some point the market will take notice..
Its only my view that this company "could" be undervalued.. each hurdle they jump makes the thesis more credible..
So far so good.. keep it going Mast... anything under 2p could turn out to be a real bargain in 12 - 18 months from now..
So the volume today is not amazing .. but the sentiment is in the right direction.. Mast are clearly ticking off boxes and starting to turn a corner.. We dont know what Kibo will do .. but to me they would be mad to keep selling off their stake when this could be the turn around story of 2024..
The MCAp is ridiculous as the asset value is far more than 1m..
I like the plan, its simple easy to understand and profitable.. If Mast can keep their promises and stick to the plan this could be a very profitable and sustainable business..
Tbh.. the issue was never "can we sell the product" that's a given.. the demand is there 100% the issue is can UFO get the funding to get the mine / road to get the Ore / to screen it and load it into the trucks and away..
For me the JV model doesnt really work on Hanc0ck.. Happy to be proved wrong but I just dont see that the margins are wide enough.
with Ore at around $110 and FoB at $85 then $25 Gross per tonne.. there are likely other costs like further Drilling etc.... so even if its a 2Mt producing Mine how much would UFO get from it ?
As a shareholder surely everyone wants to see the maximum profit realised.. For me a mining / management contract would be much better.. a JV suggests that an "earn in" agreement is on the cards..
@Devil if we dont find support at around todays price.. then who knows we could be on the way back down to 11 ? the volume really just went out the door.. so im really hoping this is just a pull back and not a resumption of the down trend.. then its got to hold at the double bottom..
Did you get out at your 0.22 price I think you were saying ?
Its not scientific (so dont hold me to it ) but the volume today was well below that of the previous few trading sessions.. "usually" a pull back on lower volumes is what you would expect during an uptrend.. the opposite on the downtrend.. thats not to say that the price wont just carry on down.. (as it has many times)
To be fair UFO is slowly creeping much closer to mining Hanc0ck.. quite a few of the jigsaw pieces are now in place and the de-risking continues until its either mining or its not.. I suppose the next news we would be interested in will be the financing / offtake agreement and FID as per the current corporate presentation..
We would expect that the funding / offtake and FID by the end of Q2.. then that's it.. the next stage is construction of the mine!!
My best guess is that EH might become a JV if any half decent offer is on the table, this potentially in an effort to try and get the SP higher for funding.. the company is clearly struggling to convince the markets that its a serious proposition.
If Iron Ore holds up at well over $100 then that would also be a big help..
Its a pullback.. Silver got hammered today.. but is still $27 per oz.. lets be honest did anyone think it would go over $30 without reply ? the rally ran out of legs twice at $29.. so it will go down and then find some new buyers.. or maybe not ?
this is the nature of price movement.. it might be a good thing if UFO pull back a bit.. as long as the longer term downtrend doesnt persist then its fine..
If the downtrend carries on then "mind the gap" as its going to be brutal.. its a bit of a pain as I need to move some of my holding from one account to another.. i was going to sell this morning but someone beat me to it... grr
@Steveiom sounds like common sense..
the real positive from the license is that UFO are now forced to act, so lets see if they can get a deal off the ground and get boots on the ground for Hanc0ck.. they really have to step up or be exposed..
im really not sure what will happen at EH.. but some update on the state of the mine would be nice at some point.. i doubt there is much to see from a geology point of view without being able to enter the mine itself.. the area of EH is pretty small and its already been drilled.. so i doubt much more information could be got from a surface visit..