Pauly I don’t come on here any more as the ‘discussion’ (previously fairly informed and entertaining) has descended into schoolyard farce. However I do have a question for you: would you still regard the BoD as ‘sc*m’ had the Sasanof adventure succeeded and the share price multibagged (as it likely would have)?
I think that they had a couple of weighty warrant conversions earlier this year so unless they've started spending money on something other than overheads and existing stuff they shouldn't need cash just yet unless for something specific.
I have commented/complained of lack of info on their Twitter post where they state that 'all resolutions passed'. They're pretty prolific at posting stuff there so let's see if they respond. Am sure it's no big deal and that there was little of importance but it is slightly remiss/annoying. Anyway, onwards and upwards. Stonepark drill results must be imminent...
Pecten, while most wouldn't disagree with what you're saying BUT to say 'BOD is loss-making' is meaningless unless seen in context - it's an explorer/developer so of course it has a cash burn, but it is kept to a bare minimum partly because it has bare minimum overheads with no fat-cat salaries or Director/management fees (unlike many others on AIM), and partly because it's managed well. In doing so it has slowly (very slowly I agree!) amassed a series of resources and licences (of which TR is just one) in a diamond sector where a number of the bigger existing mines are now reaching the end of their economic life (eg Argyll which closed in 2020 and Diavik in a couple of years, and that's just RTZ) which means that the bigger players are seeking new resources. If the latest drill confirms that TR is indeed a world-class deposit ready to be mined with permits and licences in place and general infrastructure close by, it's going to look very attractive to bigger acquisitive players especially in a booming diamond market and irrespective of the short-medium term macroeconomic outlook. As for raising cash for mining it itself, that would depend on the size of the deposit (which this latest drill is clearly key in getting it to a size which maximizes the economics of it and the overall mine plan, and the $ amounts involved to mine it - James has previously said it is likely to be a matter of a few million, not tens or hundreds, to get it going. Not necessarily easy I grant you, but certainly not unsurmountable if the story's good enough.
DVH I believe they are doing the remaing drilling over the summer (ie now) so could be some results before too long. I think timing might also depend on where Group 11 prioritise the drilling locations - ie the 3 remaining JV drill locations or their own adjacent locations. Either way it can't be long now!
Pecten - yes perhaps true re Covid/Botswana - possibly also explains the seeming lack of result from the Burgundy side of things (which to me is disappointing tbh). Re KX36/TR I tend to think the opposite - focus on TR for now, get it a proper valuation, decide whether to keep it and mine it, or sell it (I don't mind either way personally but I think a royalty deal would be a short-term wasteful solution), then use the resources from it to head back to Botswana and get moving on KX, Sunland (and now Maibwe). Maybe Ghaghoo too (I just whispered that though!).
Hi Pecten Future Minerals is a bunch of local interests. Not entirely sure of their situation tbh but any weakness/inability to stand its corner presumably brings opportunity for BOD. KX36 - it's a tricky one, have discussed with James previously, personally I feel that royalty deals, although quicker, tend to give most of the upside to a third party, I'd prefer they stuck with either tarting it up and selling it on, or having the balls to raise the financial resources to do it alone/with a JV partner of some sort (Burgundy...?). Same goes for Thorny River/Marsfontein. I think also with KX36 it's in the middle of nowhere, will need a fair bit of mobilisation, most of the Company's efforts are currently on TR/Mars - hopefully rightly!
Looks like the Maibwe logjam sorted at last. It's taken 5 years which a few on here will be well aware! But if the Gaborone rumours are true about the real size and quality of the resource (especially the one Teeling quietly referred to in the RNS) prove true it will be a monster in the making. Whether Future Minerals have the financial and operational capacity to maintain the other 50% will be interesting to see, therein perhaps another opportunity may arise, who knows.
Echo, Ziqarat, I can highly recommend a trip to Pretoria/Jo’burg (and a certain area North of That…!) followed by a 2 day trip back down to Cape Town on the Blue Train which stops so passengers can visit the Kimberly Mine en route. Not exactly cheap but a wonderful experience.
Echo I think your’analysis’ is about right ref drilling and subsequently having a better idea of the resource and the scale of its commercial value. In terms of value to shareholders and timescale to realise that value will depend on what they decide to do with the resource - at one extreme they could raise some cash and develop it themselves (probably not that much needed to do it by James’s owm admission), or at the other extreme sell on ‘as-is’ to a bigger player, while somewhere in the middle lies a royalty deal. Persomally I’d prefer either of the extremes, one takes longer and carries higher risk and would likely yield better returns long term, the other quick and by its nature somewhat discounted, but either route will return multiples of today’s share price.
DVH can't disagree with any of that. Stonepark is clearly more pertinent at present than any of the Mine River or Inishowen stuff (however interesting - and late! - they may be). Seeing the repeated Twitter posts (by whom I wonder - not Jim or Johnno surely?) just starts to make me nervous that they want the share price up to raise funds! (though I doubt that's the case unless for something specific eg Zimbabwe).