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Strong balance sheet, but at what cost? Loan note interest combined is now $m’s per annum, the royalty payments skim off top line revenue, and the AISC with the Orion finance package is now pushing $30k/ton. With tin prices looking like they’re heading under $25k, back to losing money on every ton produced.

The tin subsidises the lithium production but that’s a long way from being commercial.

Orion still needs to be voted on by shareholders, I’m fully against it, funny how AV never provides cash projections for the company. Waiting to see what the brokers make of it and how they adjust their forecasts.

Rio Tinto CEO Jakob Stausholm said on Tuesday the global miner is focused on small, bolt-on acquisitions to shape its portfolio and is looking at a number of potential lithium acquisitions but added the sector remains quite hot.

The boss of the world's biggest iron ore producer has said that he wants Rio Tinto to focus on being the world's best operator rather than conducting huge buyouts that would change the nature of the company and divert the focus of the group.

"I don't think we need a big acquisition right now," Stausholm said at an event in Melbourne.

"What we are trying to do is a bit of smaller portfolio acquisitions ... that shapes the portfolio."

The Australian miner has already announced several small partnerships and deals this year, including the purchase of a 57.74% stake in the Agua de la Falda copper project in Chile on Monday.

Earlier in July, Rio Tinto agreed to buy a 15% stake in Australia's Sovereign Metals for A$40.4 million ($27.04 million) to help develop a rutile and graphite project in Malawi.

Rio was looking at a number of possible lithium interests, Stausholm said, but the market for energy transition metals like copper and lithium was "pretty hot." "I wouldn't mind having lithium production in Canada," he said.

Rio wants to raise its lithium exposure, and Quebec, home to Rio's green aluminum operations, is a hot spot for new hard rock lithium deposits, with battery chemicals makers setting up shop in the region ready to supply the U.S. electric vehicle market.

In the latest deal in the race to secure lithium assets and on Rio's doorstep, top global producer Albemarle agreed to invest C$109 million ($82.5 million) for about a 5% stake in Canada-based Patriot Battery Metals (PMET.V), which this week said its Quebec resource was the largest hard rock lithium deposit in the Americas.

Rio has been off to a sputtering start in the sector, with its Jadar lithium deposit in Serbia on ice after local opposition and with costs doubling at its Rincon project in Argentina.

Everything else being equal, the writedown of Anuvia would reduce

our live NAVe by 2.3% or $14.0m from $620m to $606m or from $12.63 to $12.34 per

share. But today we are also making another change to our NAV to remove our

performance fee accrual. RSE pays its GP a performance fee of 20% of gross realised

profits subject to it meeting a portfolio level cost benchmark, which, at 31/12/22, was in

deficit by $95m. Footnotes in the quarterly NAV statements indicate the size of the

potential accrued fee which is not accrued until the portfolio cost level benchmark is met.

Our live NAVe includes our estimate of the potential performance fees, which today is

$29.8m, but, with RSE now significantly further away from the cost level benchmark test,

we are now removing that performance fee accrual from our live NAV. After adding back

the $29.8m, we were including for the performance fee accrual, our live NAV would be

$12.95 per share or 1,003pps. But we are also updating to include the latest share

buybacks for the period since 31/3/23, which results in our live NAVe increasing by a

further 33 cents to $13.28ps/1030pps (ie including the Anuvia writedown, buybacks and

the removal of our performance fee accrual). So despite the bad news, our live NAVe is

actually up overall by 5.1% as a result of our overall changes. Our 30/6/23 NAVe on the

same basis would be $12.98ps/1,022pps.

• Based on the current share price of 530p (@09:00), the headline discount to our live NAVe

is 48.6% but deducting net cash and the listed holdings at NAV, the implied discount on

the remaining unlisted assets is 123%. This is one of the widest discounts for any listed

private equity company we cover. While the Anuvia writedown is disappointing news for

RSE shareholders and a set back for RSE in its strategic transition towards

decarbonisation investments, a >100% implied discount on the unlisted assets implies the

market already applies no value to those investments at the current share price. We are

Overweight.

Agree. Bulgaria could be via one of the recent presentations/exhibitions, or via some agency representation in Europe?

Longspur have commented on this pre-AGM update today, haven't revised their 2023 revenue projections even though the H1 guidance from Invinity has exceeded their forecast. They project revenues of £30m for 2024, ramping up to £134m for '25 and £216m for '26, with earnings of £31m by that stage. No mention of expected further equity placements for next year, unlike Canaccord, expect fundraising to see them through to +ve cashflow..?

Thanks CP, makes perfect sense! Clarity restored.. :)

CP, on page 15 it shows the location of the old CH-1 proposed drill, does page 14 show the location of the new proposed sight? It doesn't state that but the interceptions look different to that on page 15.

Happy to be wrong, might have my wells in the wrong order.. :)

You sure, from the AGM presentation:

Will undertake a well-workover of the Ntorya-1 well, to enable rapid tie-in to the gas production facilities and bring the

well into early production. This requires the use of a drilling rig and remains scheduled to run after the drilling of CH-1.

And re NT2:

Has rescheduled its two-week well-testing programme (originally proposed for late March 2023) on the Ntorya-2 well,

designed to provide additional information required for the design of in-field processing facilities, to be completed in the

coming months

Will be tight to drill CH-1 and get the workover on NT-1 completed to start producing gas before the end of the year.., if both are scheduled not to start until Q4..? Don't know what a well workover entails, i guess preliminary work has already been done to reduce the time needed once the equipment is available?

Absolutely GL, it's what it's there for! Bojo just seems bitter about losing money on AEX and is trolling the stock to feel better about himself. Comparisons with his namesake are purely coincidental.. :)

Canaccord issued a research note yday which probably caused this - they increased their projection for losses in 2024, and suggested that cash burn through 2023 and 24 will need the company to look at raising further finance, either through equity or via strategic partners/project financing. There are also outstanding warrants that may be converted this year next, and they suggest there may be some changes to the exercise price which is due to be discussed at the AGM next week. This will raise funds for IES but obviously increase share count. So weakness related likely to both of these outcomes.

Hugely disappointing ytd return for the share price, and to write down an investment to zero 15 months after making it? Questions the due diligence that's been done prior to this. Board must be coming under increasing pressure to wind this up and return cash to shareholders.

But you do need finance...

The Orange Trust relationship goes back to Bushveld days, he was there then, he's here now, it's all about the return at the end of the day

M9991, hundred percent. Don't forget, AV was claiming back in January that the Orion package was done and dusted - it may now not even happen, and i'd be happy if it doesn't, with the potential for a much more significant JV arrangement that takes production to the all important stage 2 level currently being looked at.

If it wasn't for the Orange Trust backstopping the company with further equity back in September, the Li plant would most likely not have happened yet.

Finance has never been ATM's strong point, hopefully that's about to change - these 35p targets being banded about are conditional on that to achieve the levels of production needed to justify a MC of £500m+.

On a current EV to sales multiple, ATM is currently about right, given what's in the ground, but that could change very quickly. :)

Tin extends gains to five-month highs as buyers secure supply over Myanmar concerns

• Tin prices pushed higher to $29,100/t, up 20% since May.

• Analysts suspect traders have been securing physical supply before a potential suspension of mining in Myanmar’s Wa State.

• The ban is expected to begin from August 1st to protect reserves.

• However, LME tin stocks are buoyant at 3380t vs 1510t on the 25th April.

• Reuters reports one individual company holds between 50-80% of tin warrants currently n ussue.

• Another single company is reportedly holding 30-39% of LME open interest short – expect volatility going forward.

• LME premiums have risen to $1,700/t, the highest in nearly two years.

• Myanmar accounted for 77% of Chinese tin ore imports in 2022.

4.108m shares repurchased & cancelled in H1 of the year, just over 8% of the shares in circulation at 31/12/22.

Chrysalis NAV slides further as board offers wind-up to shareholders

Falling valuations continue to harm the growth-orientated trust

Chrysalis Investment Trust’s net asset value (NAV) dipped further in the six months to 31 March 2023, with the trust’s board set to offer shareholders a ‘managed exit programme’ in April next year.

Falling valuations continue to harm the growth-orientated trust, and chairman Andrew Haining said its AGM in April will give shareholders the option to determine if the company should continue investing proceeds from realisations, or return all investment proceeds over a managed exit programme.

Upon the trust’s IPO in 2018, the board was obligated to ask shareholders whether it should operate beyond its fifth anniversary, which falls in November.

TZ - save yourself (and others on his board who have filtered out his c**p) the bother by also filtering him out, please! I say this for your own sanity. Just like Bojo, it's the end of the road for this dimwit..:)

Tin prices jump to six-week highs as supply threats outweigh slowing demand

• Tin futures have rallied to $26,550/t as volatile trade continues.

• The move comes despite sliding premiums, although Reuters notes the metal’s spreads are tightening, suggesting depleting supply.

• Chinese smelters are noting limited concentrate supply, with Guangxi Tin, the sixth largest tin producer, halting smelting for 45-50 days at its Laibin smelter on limited raw material availability.

• Semiconductor sales, a major driver of tin demand, are expected to fall 10% this year, and were down 22% yoy in April.

• Indonesian tin exports fell 35% yoy in Q1, although they have subsequently rebounded.

• Minsur’s production fell 54% in Q1, although they have subsequently resumed full operations.

It's not, there's no equity raise going on at present.