The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
What is your source for that projection? Not EQT as far as I know. But if we take your figure of EU1 million EBITDA what is the actual profit/loss which is all that matters. If it's a loss it will not be viable.
The tech here was the reason most of us invested but has let us all down.
It's now a year since the Italia MDC was undergoing start up but in the latest missive we are told "additional performance improvements" are still required.
It is likely that most of the EU2.9 million Rome bank loan is to cover capex modifications to the plant and operational losses during the past year. The bank has been told performance has improved, the MDC is now profitable and can repay the loan with interest so the funds are being released but MDC profit calculations (never disclosed) are burdened by this extra finance burden. And that:
"additional performance improvements" are still required at what further cost?.
It is possible that this project will NEVER BE VIABLE.
What are the implications of all this on the Greek plant at Larissa where EQT has been refusing to support commissioning because it claims funds owing to it have not been paid? EQT does not want to talk about this which is Plant no 2.
Then there is Plant no 3. North Fork due to be commissioned soon. Will it also take a year to operate at a profit? And at what extra cost for modifications and running losses?
Plant 4. Croatia MDC it seems has not got out of the blocks due to incomplete funding. Will the modified build ever happen and to what standard and at what extra cost following this Italia MDC disaster?
These are all issues that EQT should be disclosing to shareholders but does not want to talk about. Instead we get yet another pie in the sky project "an integrated, waste-to-liquid fuel solution" that probably will never work and never happen.
Yes, Douta is a good fit for Endeavour and they have the cash.
Douta is 30km from Endeavour's processing plant at Sabodala. The ore at Massawa,, 4 km from Douta, is mined then trucked to Sabodala so it's not much of a stretch for Douta to be handled likewise.
54Moz of gold surrounding Douta in Senegal and Mali.
The Douta Gold Project is 700km from the capital, Dakar, in eastern Senegal near the border with Mali. It has a gold exploration permit that covers an area of 58 km² and is located within the Kéniéba Inlier which hosts over 40 million oz of gold deposits and has attracted major international mining companies.
Douta, Thor Explorations 70%, IMC 30%, has an estimated resource of 1.78 million oz of gold at 1.3 gm/t with this expected to increase to 2 million oz plus with grade increases from drilling continuing in 2023. The gold is partly free milling and partly non free milling (refractory) requiring special treatment by BIOX, similar to Massawa (see below).
Nearby gold properties are:
Sabodala. This is a world class mine complex, the largest in Senegal owned by Endeavour. Douta is aprox 30 km SE of Sabodala mine and Processing Facility. Sabodala, ex Teranga, has been in operation for more than 10 years with historic production of 2 million oz of gold and reserves of 2.6 million oz at 1.3 gm/t. It has production from open pits at both Sabodala and now Massawa at 350k oz pa at 2.9 gm/t in 2022 with AISC $700/oz. Combined M&I resources are 6.3 million oz.
Massawa. Douta is 4 km E of the Massawa Gold Deposit which has reserves of 2.6 million oz at 3.94 gm/t and a resource of 4.4 million oz. The ore is partly free milling and partly non-free milling requiring different treatment via BIOX. It was acquired (90%) by Teranga Gold Corp from Barrick for US$380 million in cash and shares in 2020 (then Teranga was subsequently acquired by Endeavour Mining in 2021).
Other properties in the region include:
Mako Gold Mine, 90% owned by Resolute Mining Limited (operated by Petowal) ia a mature mine with gold production of 120k oz pa. It has a JORC-compliant Mineral Reserve and Ore Resource of 0.7 million oz and is located approximately 35 km SW of Douta.
Makabingui gold project, recently sold by Bassari Resources because of funding issues to Bishop Resources is immediately to the east of the northern part of Douta's licence with a JORC-compliant Inferred Resource of 1 million oz at 2.6 gm/t.
Loulo (W Mali) - 12.5Moz. Barrick.
Goukoto (W Mali) 5.4Moz. Barrick.
Sadiola (W Mali) - 13Moz. IAMGold & AngloGold Ashanti. etc.
The Sabodala-Massawa mine is one of Endeavour’s cornerstone assets and is currently undergoing an expansion which will elevate it to top-tier status with a targeted production of above 400koz/year at an industry leading AISC.
Sabodala-Massawa is the largest producing gold mine in Senegal with Sabodala in operation for over a decade. Massawa ore is trucked to Sabodala for processing. It was acquired as part of Endeavour’s acquisition of Teranga in 2021.
Endeavour is currently expanding the Sabodala-Massawa mine with the addition of a new BIOX processing facility for processing the deeper refractory ore. The new processing facility will add incremental production of 1.35Moz at
A lot is happening here. But what is Segun up to with Douta?
The PFS has been moved back from Q4/23 to Q1/24 to give more time for a new MRE to be issued in Q1 ahead of the PFS where the resource of 1.78 million oz gold is expected to be expanded to 2 million oz at a higher grade, with more converted from inferred to indicated category and for development of the mining process with the Chinese in conjunction with the metalurgy work in Perth.
Exploration here has so far been limited but with further exploration and drilling along a 15 km mineralised corredor the resource can be expanded further.
Douta is not a straight forward development due to the refractory ore element as with the nearby Massawa development (Endeavour).
The cost of building a 100k oz pa mine at Douta will not come cheap. $120 million for Stage 1? It can be done in two stages with the oxide ore CIL processing first followed by a BIOX. Stage 1 could be financed 50% by a Finance Co and the balance through cash flow this year and next. Commence 18 month build early 2025 with completion mid 2026.
Randgold/Barrick did not develop the much higher grade and larger Massawa deposit for 10 years before selling out for $380 million in 2020.
Then there is the salutory lesson of the failed development of the adjacent Makabingui deposit in 2020 by Bassari Resources.
When the PFS comes out it is sure to trigger interest from predators and in particular from Endeavour to add to their regional supply of ore to their huge operation at nearby Sabodala. The economics for the low grade ore could be improved for Endeavour by installing a crusher and ore sorter at Douta before trucking to Sabodala.
What price would Endeavour offer for Douta? $100 million?
(B2B Gold sold its 1.1 million oz, 2.3 gm/t Toega resource in Burkina Faso to West African Resource in 2021 for $45 million).
Segun says he is not looking to dilute shareholders with future development of Douta or the recent Nigerian lithium deposits but is open to partners/JV's. He has strong links to the Chinese who were contracted for construction of Segilola and are involved with the process design for Douta.
So it's likely the ball will kick off with the PFS in a couple of months time. Future development of a second mine for Thor in Senegal? Or a sale providing funds for gold and lithium mines in Nigeria where Thor is the first mover with plenty of attractive prospects.
None of this is in the sp at a near low of 14.25p since listing on AIM in 2021.
THX Mkt Cap is £93.5 million at sp of 14.25p.
Dual listed. Also on the TSXV (THX) with sp CA$0.23.
Major holdings: Segun Family 15%. Segun 4.5%.
Dual listed. Also on the TSXV (THX) with sp CA$0.23.
Comparison: Shanta 100k oz pa. Mkt Cap £136 million at 13p.
Target Price: 30p - Canaccord Genuity 15/1/24.
If significant lithium deposits are discovered and developed Thor Ex could become a billion dollar gold and lithium producer.
Jan 15, 2024 . Thor Explorations Ltd president and CEO Segun Lawson speaks to Thomas Warner from Proactive after the West Africa focused gold producer released a production update for 2023 and fresh guidance for 2024.
Lawson provides a comprehensive update on the company's performance and plans, saying that Thor Explorations produced 21,798 ounces of gold in Q4 2023, contributing to a total annual production of nearly 85,000 ounces. Despite facing challenges, the company successfully completed significant projects, including the west wall expansion, which improved the mine's efficiency and reduced costs.
Lawson emphasises the completion of capital expenditure projects that enhanced recovery rates, and he highlighted the absence of major CapEx obligations for 2024. This year, the company's focus will shift to operating efficiently and expanding exploration activities in Nigeria. Thor Explorations reported success in exploration last year, discovering high-grade gold intersections in the southern prospects area near the mine.
Additionally, Lawson touches on the potential of lithium exploration. While he says recent drill results haven't warranted a standalone press release, the company is planning another drilling campaign to explore the value of lithium for shareholders.
Looking ahead to 2024, Lawson expresses optimism, citing strong gold prices and the company's guidance of producing 95 -100,000 ounces at a cost of around $1,200 per ounce. The company also anticipates completing a preliminary feasibility study for its Douta Project in Senegal, delayed due to metallurgy testing.
Aug 18, 2023 LONDON. Thor Explorations, Segun Lawson, CEO, webinar with Q&A at the end. 27 mins.
A month or so prior to this, Segun announces he has invested around £1 million of his own money in Thor for 6.6 million shares taking his holding to 4.45 per cent of the company.
https://www.youtube.com/watch?v=QaObGydxSNU
Q3 report. Gold recovered for the quarter was 19,104 ounces and 62,811 ounces for the year so far.
The Group maintained its production guidance of 85,000oz for the year. So is expecting 22,200 oz or better in Q4. This should be doable given the switch away from mining waste in the southern section of the mine and the following:
Several improvement projects including the leach tanks circuit upgrade, conversion of the elution circuit as well as an electrowinning upgrade, which have been completed post the end of the period, have positioned the Group to improve on its processing recovery and efficiency which will reduce the gold in circuit through the remainder of 2023 and into Q1 2024.
Both yesterday morning and this morning the MM's have quickly run out of stock so buyers are restricted parcels of usually 5k or less until sellers come in to provide liquidity. Serabi is in big demand as we saw later in the day yesterday when the MM's found stock to sell. Volume reached 1 million plus which is the highest since April and the second highest in the last year..
Serabi Snapshot. It has 2 underground 8-10 g/t mines in NE Brazil.
Production currently being lifted from 33k oz pa to 60k oz pa with the development of the second mine.
SP is 43p giving a Mkt Cap of £32 million which means it is massively undervalued.
ST target sp 100p. Six bag in time is possible.
AISC $1553 year to date and falling so cash increasing Q on Q
Net cash of $9 million.
A lot happening with 9 significant RNS's in the last 3 months boosting the sp to a year high.
JV with Vale for exploration of many copper targets on large land package. Vale is 100% funding.
Massive exploration potential for both gold (Serabi) and copper (Vale/Serabi).
Serabi Gold Corporate Presentation Nov 2023:
https://www.serabigold.com/investor-centre/corporate-presentations-technical-reports/
1755. Agree Shanta is gonna be stuck or very limited in movement for months whilst the gold bull levitates most other miners. Serabi is an excellent choice to move cash to which I am doing.
Serabi has 2 underground 8-10 g/t mines in NE Brazil.
Production currently being lifted from 33k oz pa to 60k oz pa with the development of the second mine.
SP is 43p giving a Mkt Cap of £32 million which means it is massively undervalued.
ST target sp 100p. Six bag in time is possible.
Aisc $1500 and falling so cash increasing Q on Q
Net cash of $9 million.
JV with Vale for exploration of many copper targets on large land package. Vale is 100% funding.
Massive exploration potential for both gold (Serabi) and copper (Vale/Serabi).
Imo the Patels' offer of 13.5p is as a result of them following advice from their financial adviser who is Berenberg. It is Berenberg who has stitched us up and will be responsible if the 'no' vote wins at the upcoming EGM, not Liberum. This is not a stalking horse offer to elicit higher bids from the market. It is Berenberg giving disastrous advice which was accepted.
Eric's position at present is unclear. It is likely he has been offered some form of sweetener to get his support. Maybe a million in cash or some continuation of earnings as an advisor if the bid goes through. Imo he has put himself in an untenable position.
Bidco and ETC Holdings Tel: +44 (0)20 3207 7800
Badal Patel, CFO
C/o Berenberg
Berenberg (Financial Adviser to Bidco and ETC Holdings) Tel: +44 (0)20 3207 7800
Matthew Armitt, Miles Cox, Jennifer Lee, James Thompson
There are plenty of possible counter bidders for Shanta:
Barrick (ex owner of Shanta's WK tenements)
Shandong Gold (potential all cash bidder here in 2022. most recent purchase is the 5.1 million oz Namdini gold project in Ghana (Cardinal Resources, $408 million)
Yintai Gold (potential all cash bidder here in 2022)
West African miners looking for more politically stable African jurisdictions
US miners/investment companies
Canadian miners/investment companies
Auz miners/investment companies
Aclara's RE project is in Goias State in central Brazil which is the same State as HOC's Mara Rosa mine. So there is a mining friendly jurisdiction there which is much better than in Chile (environmental constraints) and some synergy with the two projects. It may be quicker to bring a RE mine into production in Goias than in Chile.
The capital, Brasilia is the main city of Goias.
Cont. The near-surface location of the deposit results in a very low strip ratio (less than 0.4) providing a positive backdrop for a low-cost mining operation
Aclara CEO, Ramon Barua, commented:
“The combination of its large size and attractive grades makes the Carina Module an outstanding deposit of ionic clays and significantly increases Aclara’s total resource base. The fact that we can apply our patented metallurgical recovery process, which combines competitive costs with superior environmental qualities, provides a promising backdrop for the upcoming Preliminary Economic Assessment. We are excited by the possibility of becoming a significantly larger supplier of magnetic rare earths, especially dysprosium, given how critical these elements are in our planet’s fight against climate change.”
HOC holds a 20% stake in Aclara which is now derisked with the confirmation of a significant MRE at their Brazilian RE deposit. Aclara is now a multi jurisdiction (Chile and Brazil) explorer/developer of RE minerals.
Aclara announces discovery of 168 Mt ionic clay mineral resource at its Carina Module in Goias, Brazil.
TORONTO, ON, December 12, 2023 – Aclara Resources Inc. is pleased to announce the maiden mineral resource estimate (“MRE”) for its regolith-hosted ion adsorption clay project located in the State of Goias, Brazil, known as the Carina Module.
The 168Mt of inferred mineral resources at the Carina Module complements the 27.5 Mt of measured and indicated mineral resources, and 1.7 Mt of inferred mineral resources at Aclara’s Penco Module in Chile.
Recovery of rare earths from the Project is fully compatible with the technology patented and successfully demonstrated on a pilot scale by Aclara in Chile, designed to minimize both cost and environmental footprint.
The near-surface location of the deposit results in a very low strip ratio (
23/10. Exploration activities have continued during he Q3 at both West Kenya and in Tanzania. At West Kenya, we continued infill drilling totalling 8,387 meters while approximately 10,000 meters is planned for Q4.
At NLGM, the Phase 1 drilling program is ongoing, while at Singida we commenced with the first few holes at the western deeper extension of Jem pitshell.
In a recent CC, as I recall, Eric said the NLGM drilling contractor had had issues and had fallen behind so Shanta had to employ a second contractor to do part of the drilling to catch up. So drilling was behind and then there is the analysis for results.
Of more interest is Singida and WK drilling.
WK drilling restarted in May and has continued in H2. We have had the first batch of results on 2/11 with the balance to come as available.
Of particular interest is Ramula: 2023 drilling aims to increase M&I inventory and expand Inferred. Potential for new discoveries of stand alone deposits within