Member Info for oil_trader

I have taken the following paragraph from a 2010 rns regarding Storuman

The 2010 Scoping Study delivered a base-case project NPV of US$33 million, and an Internal Rate of Return (IRR) of 24% at a US$303/tonne mine gate fluorspar selling price and a capital pay-back of less than 3 years. The Company notes that at the current fluorspar price of US$460/tonne CIF Rotterdam the Company's Scoping Study base-case financial model generates a NPV of US$123 million (at a comparable discount rate of 8%), an IRR of 50% and a 1.7 year payback. Although the grade-tonnage data on which this financial model is based is no longer current it serves to illustrate the positive effects of the rising fluorspar price.

So since that scoping study was done the price of fluorspar is now over $500 even at the time the study was done the price was around the $450 mark but the company insisted a conservative figure of $303 was used

JORC confirms 27.8m tonnes or ore with 10.2% ore so 2.8m tonnes of fluorspar concentrate opposed to the 2.2m used for the scoping study

Based on all the above the nvp for Storuman should be well in excess of $150m

So my $20m figure is looking very conservative

As AveryB has pointed out the MOU does apply to Storuman.

The MOU is a 70% off take of any flourspar produced and finance agreement for all current assets and a view to provide finance for an further acquisition

Explain why not?

What do you value a licence to mine a 100% owned asset in a developed country with a huge European demand and a MOU from a major?

Any positive news on Sweden should see a move well above 2p

Simply calculate the value of what’s in the ground and the fact that a major is ready to fund the development

Mcap of 20m isn’t out of the question

Buys seem to be picking up over the past couple of sessions. Interesting that the last buy went through at .7 today. Shows there isn’t much stock at this price. With a few more buys we are likely to tick up over .7 which should lead to technical traders moving back in.

Although there wasn’t an update last month as I predicted I do think it could arrive any day now

I do still expect an update before month end although that isn’t based on any inside knowledge, more an estimate of time needed to find a solution.

With reference to the current price, it is very undervalued based on the assets owned and the company having no debt. As soon as progress is shown on any of the projects the price will rocket. There are many examples of resource stocks that are not currently generating revenue and likely won’t be for the foreseeable future that have crazy mcaps. £20-30m mcap is easily achievable within the next 6 months

I’m expecting an update from Sweden by the end of the month. We should start to see a rise from the current lows in expectation of positive news

What do people think the chances are of an update this week?

It’s been 10 days since the permit rns, surely they should know what direction they need to take by now

Ggp have a mcap 10x that of tertiary. The main reason for that is pure speculation of a potential buy out by a major.

Once Tertiary have a solid licence for any of these projects then the mcap will be in that ball park

Alan Green on the Vox podcast today sounding extremely bullish about the potential of Tertiary.

He goes on to say the market cap is currently minuscule compared to the asset value and thinks the drop is well over done.

Personally I can’t see it getting much lower. You maybe able to buy under .7 at some point today but I doubt that will last long

I wish I’d held off with my top up. Could have got much better value today

We know it will be open to appeal. But I get the feeling that the CAB and Tertiary are trying to make the permit as watertight as possible so any decisions that are made cannot be over turned.

The in-depth studies carried out by Tertiary coupled with the due diligence that the CAB have taken would surely not leave any ground for a successful appeal.

I do still expect an appeal if the permit is granted, but feel that it would be found to be frivolous

Totally disagree with this view.

We now know the CAB only have issues with one aspect of the project. And this may only be a slight technical issue which could potentially be resolved within a few weeks. Once this matter is resolved, and I’m very hopeful that it will be, the permit will be granted.

Although this is a disappointing RNS, I like some other posters are looking to the positives. They are happy with a lot of the work Tertiary have done but don’t like the company’s plans for the tailings facility.

Personally I can see this being resolved with further discussion.

I’m confident going forward and took the opportunity to top up

Nice delayed buy just dropped. I sense a few more of these are to be dropped in over the afternoon.

For those who have watched the lack of volume over the past few months, seeing several 6k 7k 8k 9k trades dropping in is something unusual

Looking very interesting now

Looking like heavy buying all of a sudden....

Not that I’m aware of. Although a few have given set time frames that have been published by the Swedish authorities

I’m not sure where the date of the 13th came from. Although a few posters are sure that’s the time limit for a decision.

Anyone able to post a link for where that date or timescale has been given?