RE: Zak Mir23 Aug 2021 14:16
I shouldn't look at the price action from the last few weeks too much. It was pushed down on very little volume and a general drift on lack of anticipated news.
The thing here is there is a story and it ain't a fantasy you find in many junior miners, telling you of untold riches if only they discover that bonanza grade.
We have:
a JORC defined resource,
the second highest product grade of any mineral sands mine on the planet,
a company in the preproduction cycle requiring precious little capital (approx £35m) to bring the mine into production,
50% margin business,
offtakers queuing up to buy the product and finance the mine,
only 10% of the licence explored to a depth of 3ms,
about to commence drilling for further resource,
the recent appointment of a Technical Manager (with form - history & experience),
a CEO with a track record of developing companies to £200m mcaps and beyond,
a local government not only eager for the project to start but also for it to be expanded
and a product experiencing unprecedented worldwide demand and soaring prices with analysts predicting tight supply to the end of the decade.
We await EIA box ticked, and thereafter the ML (both of which the CEO is on record expressing his high confidence of achieving, shortly), after which this share will find it's new natural level and as the mine approaches production I would expect further continued and steady SP rises (just look at well established SP development for miners in preproduction).
I expect this to drift from 40p (after the ML is issued) to around 100p by end of 2022.
SO my message is don't sweat paying an extra penny or two now to get your chunk of stock.
Sign In
Follow the stocks
