Emma's the problem11 Mar 2025 23:12
I'm sorry guys, if you've read my posts today, its been quite a confusing day for me, but I have to say that, following listening to the interview again, I do not consider Emma to have the business acumen to take this project on. I view her as a thinker and not a doer. It appears she wants to spend the next two years (minimum), faffing about with the heap leach scenario and somehow accumulate enough funds to develop the sulphides reserves.
She said that these modular processing plants from China can process 1000 tons of ore a day and cost c. £4-5M. That creates the opportunity for 30,000 tons a month at a minimum of 6 g/t. CIL plants typically recover 85% gold dore which equates to pure gold of 4027 troy ounces. Add the ‘very impressionable’ 430 ounces from the heap leach, you have 4457 ounces of pure gold per month. This equates to 12,925,300 revenue per month which would pay for the modular processing plant, the creditor loan of c. $2.9M and the Gold Loan in just one month. It’s an EBITDA of £111M per annum and a market cap of between £600M and £800M, but Emma wants to do it her way.
We have a new(ish) director Campbell Smyth who “has over 30 years of experience in fund management, capital markets and corporate finance in the venture capital and resource sectors. His extensive experience includes advising company boards in strategic transactions and management and trading of commodity funds. He has assisted in raising over $500m of capital for junior resource companies.” He should easily be able to raise £5M from the banks given the economics or negotiate with the Chinese for loan of the modular processing plant.
Emma’s personality may be likable, but that doesn’t make money. I do wonder whether it was Bill that should have gone.
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