REMINDER: Our user survey closes on Friday, please submit your responses here.
Good evening Westie,
Sorry for delay in replying, no I don't think you are being too optimistic, our BOD should be doing whatever is needed to get us the best Financing deal possible. If this means bringing on-board specialist advice/contacts on a part-time paid basis so be it. the Ned will be judged by their contribution to the success of the Project. I have a mistrust of the ultimate motives & ambitions of any Private Equity Provider, particularly as our Project is construction ready and obviously supported by the Moroccan Govt. I much prefer the Equity Finance portion to be provided by consumers or traders of our products, who make their Margins elsewhere without wanting to "own" our Company, but hey ho beggars can't be choosers sometimes, so we'll wait and see.
Afternoon all,
Greenstone are no stranger to investing in developing mining companies, if required, they can be involved to a greater or lesser extent with the Companies they invest in. In my view, if James Kelly has been invited to join the BOD as a NED, it may well be a condition of the finance deal being negotiated. This may well be indicative of a significant deal, which could include convertible loan notes to be converted to shares at some point. The research I've been able to do so far, indicates that they are generally supportive to the projects invested in, offering as much support as requested and they are not past taking increased stakes when beneficial to them. I personally would not want them as the major strategic Partner, would much prefer the likes of OCP. A royalty interest from Trident would not necessarily be a conflict if done properly, and Slurms, I think Gina Rinehart's ambitions in Fertilizer are greater than here, but we can wish I suppose.
Afternoon all,
My guess on the phased plan would be :-
Phase 1 Complete surface infrastructure and excavate declines/underground works to allow mining to start. This would give de-icing salt feed initially. ( Capex ~ U$50M. ).
Construct salt processing plant ( Capex $24M). This would provide early revenue during Phase 2 build.
Phase 2 Continue mining to access further salt feed and stockpile MOP ore ( ~$90M )
Commence work on MOP plant and Tailings storage ( possibly ~ $ 170M ).
Phase 3 onwards, Build SOP plant at Jorf Lasfar and ramp up MOP & Salt production at Khemisset.
The Phased approach and early Revenue stream may well be a condition of a full Financing deal, plus it would demonstrate our ability to bring the project into being at the same time as minimizing dilution by the Equity portion of the deal.
Of course there are many options available to the BOD, and I'm convinced that there will be no shortage of potential Finance Partners, we'll see in due course. The cost figures I use are taken from the June 20 FS.
Afternoon all, for info re our Inco Performance Minerals investment, they are hoping to have the new Mobile, Alabama processing facility up and running mid 2021 :-
https://incoa.com/exciting-news/
Morning GW62 and all,
Thanks for the link. At this stage of the Company's development, we are still a " Junior" Miner/Producer, and the SP reflects this fact. However, to mitigate the inherent risks of putting our hard earned in here, to my mind we have :-
A proven Management team in their respective fields.
A Jurisdiction that is generally regarded as stable and supportive of "mining activities".
A Project/Resource that has potentially 3 products with well established market demand and competitive cost profiles.
The potential for a mutually beneficial relationship with a "Major", who is one of the largest world players in the Fertilizer market we are about to enter.
It is true to conclude that there is no 100% guarantees in this speculating game, as those of us who researched and supported the SXX Polyhalite project, only to be sold short by the failure to secure funding for what was and is a fantastic prospect. However, I honestly believe that the financial metrics around funding this Project, are very much more achievable and will give us PI's a fair chance of a good return on our money.
Forgot link:-
https://www.dlapiper.com/en/africa/insights/publications/2017/07/mining-in-morocco-a-legal-snapshot/
Afternoon all,
For anyone new to investing in African based Companies, a review of the Moroccan Mining Code (2017). This is not heavy reading, and I personally like to check out the Mining Jurisdiction when investing. For me, Morocco seems to be a good place to do business, which cannot be said of all African Countries. Anyone wanting to see a full list of jurisdiction ratings, go to the Fraser Institute website where there is a free to access lit.
Hi westie, from memory the June 20 FS quoted aisc Brazil for MOP @ U$168/t, as opposed to FOB Casablanca @ U$158/t. This does not take account of the De-icing Salt by-product credits ( $60/t). However, as we will need 25% "in-house" for SOP production, selling the bulk of the remaining MOP production in country at equivalent contract levels to spot prices would be financially beneficial to EML if achievable with someone like OCP who are close by to our project. The last time I looked in February, MOP contracts into China were done @ U$202/t FOB Vancouver. So to my mind, tying up a local supply deal for MOP would be beneficial, plus give us leverage on securing facilities i.e. site,steam,sulphuric acid and other consumables needed for our SOP manufacture and Port access for Salt export. With the GDP contributon and Jobs creation, this would be a win/win situation for EML>
Morning all,
Article from last year, encouraging for our intentions to "add value" in country and the support we might expect :-
https://www.moroccoworldnews.com/2020/09/317680/made-in-morocco-mining-boom-demands-focus-on-value-added-products/
Morning all,
Thank you for the link GW62 I'd missed that one. With OCP approx 95% owned by the Moroccan Govt., having them as a Strategic Partner would imo be highly beneficial to us, particuarly at the Jorf Lasfar Industrial site, with all its relevent facilities for our SOP manufacturing ambitions. Their influence across Africa should also not be forgotten. I would however still prefer a second strategic investor, who could contribute overseas marketing and sales of our products, someone like ADM in Brazil/S. America for example. However, whichever way the financing goes, I expect good growth in the value of this Company, GLA.
Good afternoon westie and all,
With regards to your 18:01 ( last paragraph ). I've looked back at the June20 FS , and with regards to the proposed staged build :- (1) The capex for excavating 2 declines $35M and surface infrastucture $18M, would probably be done in Phase1, as potential savings would not be significant if staged.
(2) Full scale Salt plant $24m and 350ktpa MOP plant ( 1/2 Size ) at ~$75M, would achieve early revenue streams in yrs1/2 of production.
(3)Mining/Tailings storage/EPCM/Indirect costs & contingency could add another $80/90M.
So , Phase 1 construction could require U$230/240M ($155m Debt, $30M offtake/Royalty and $45/55M Equity ).
With regards to constuction - production timescales, assuming financing does not present any delays, I would guess the current site evaluations (Drilling etc.,) and the engineering design work will determine that. Hence the need to get the recent Capital Raise done asap, to allow this work to commence. Of course, the ongoing "Review" may also impact on the eventual outcome of timescales and Capital requirements to get us into Production and making money.
Afternoon testpack and all,
the Feasability Study (June 2020 ) detailed a Capex requirement of U$ 411M for the full Khemisset+ SOP development. For a Company with < $50M Market Cap, I would have thought it difficult to finance this, without giving control of the Company away in the Equity financing portion. The one thing I personally expected when Graham Clarke became CEO, was a more pragmatic approach to getting this project built and producing cash, following on from his previous experience. So when the phased development plan came out in February, I interpreted that as being his practical hands on approach to getting the job done, without diluting the Company into oblivion. I emailed him at the time, requesting more info as it became available, and also asked for clarification on the proposed move to aim. He responded promising to keep shareholders informed of developments when able to. Today's Shareholder Newsletter I take to be part of that promise. The 2019 Financing RNS showed indicative support for up to U$230M, but the costs on the business and the extra Equity raise needed, to fully fund the full project outright, may well have affected the Project Metrics for the Funding Partners. I much prefer the Phased Development Plan where Capex is reduced and Shareholder dilution minimized. The move to AIM should assist the revised Financing efforts :- " the project is only successful, when it's funded and built and into operation, that's when value comes into play".
Morning C T,
Suggest you have a look on our website at amongst other things the personal profiles of the BOD, particuarly Graham Clarke and Hayden Locke. Also worth looking on the OCP Group website to see what they are about, and how we would fit, working alongside them not only in Morocco but around Africa also. For the last 5 years I've been researching various " fertiliser " investment options, and I've put my money here. I am not a financial expert or stock analyst, so don't take my word alone, do your own research/diligence before investing your hard earned anywhere. Good luck with your investments.
Good afternoon all, thanks for the link Ohmni, an interesting read. It just re-affirms my belief that we are in a unique position in Morocco, hopefully being able to take advantage of a direct link with the OCP Group, both for a potential Mop offtake agreement and the use of their Jorf Lasfar resources to help diversify our range of products. Like everyone else I'm disappointed with current sp performance, but I am re-assured by GC's comment in the 11th Feb. interview when he stated :- " This project is only successful when it's funded, built and into operation, as actually, that's when value comes into play. Our job and responsibility as Management of the Company, is that we identify every possible opportunity to realise that value and our target is to deliver this."
As hopefully a LTH here, I am looking towards the start of Project Build rather than worrying about short-term sp fluctuations. In the meantime there should be sufficient positive newsflow, to keep things interesting.
Afternoon jazzyjim, I'm sure that Graham Clarke learned lessons from that previous experience. Also from his recent Proactive interview, he again mentioned having OCP as a potential customer on the project doorstep with an annual MOP requirement in excess of our PFS outlined yearly production level. If the current review settles on initial 50% of PFS throughput, we would aim to produce ~ 350ktpa MOP, of which we would need to retain 25% ( 88ktpa )for SOP manufacture, leaving around 260ktpa for external sale, easily within OCP offtake capability. IMO, with them as a strategic investor, Debt Financing would not be an issue. An early announcement of an OCP involvement, should re-rate the SP, making any other Equity raises easier and less painful to existing shareholders. Overall I personally remain very optimistic on the prospects here, and continue to add as my meagre Chemical Engineers pension will allow, as I don't see transfer to AIM as a problem.
Afternoon all,
My take on this is that it complements the recently detailed staged approach to production and more importantly "income". It's worth remembering that GC witnessed the failed attempts to raise above MCAP levels of debt finance at Sirius Minerals, with resultant Company failure and sell out. Having looked at the "phase 1" proposal, I guesstimate we will need somewhere in the region of U$ 300M to construct the initial mine,MOP & Salt Plants plus add -ons. If 2/3 Debt Financing ($~210M) can be achieved with a further $40M Offtake& Royalty pre-payments, that would leave approx., $50M to be raised via Equity/Strategic Partners& Retail sources. These estimates may be way out, but I am convinced, having suffered through the sorry SXX saga myself, that GC will be determined to achieve "Financing" close, as painless as possible, and get us into a Revenue earning situation as soon as possible, even if that means selling de-icing salt while Phase 1 is commissioned. I eagerly await the results of the ongoing Review and Financing discussions.
Afternoon Lew82,
Having done some checking, I too agree that the involvement of OCP with all it's in-country experience and influence, would be of significant help to the project, particuarly the SOP development at their Jorf Lasfar Chemical site which has sulphuric acid, steam, limestone quarries nearby, and ready made infrastructure in place, to facilitate early SOP production. The exact reason for a proposed switch to AIM is not immediately clear to me. However, having had some previously bad experiences of the " wild west " activities of a few Junior Companies, I eagerly await the explanation from our BOD. There may well be a justifiable reason for the decision.
Morning all,
Another credible interview by GC in which he re-stated several positive attributes of the Khemisset Project. I particularly like the determination to get the initial stage of the project built asap, with construction starting before year end and an ongoing view that rerating the share value will occur as the milestones are passed and the project gets built. He also re-iterated the mutual strategic value between EML and OCP and it wouldn't surprise me if they became a Strategic Investor, however don't rule out ICL ( Israeli Chemicals ) also as Graeme knows them well, having worked for them. This years newsflow has already been quoted, with the next announcements likely to be the granting of the Environmental Permit and the SOP Feasability Study ( end Q1) probably. By the way, thanks for the interview link westie50.
Hi Cacher, I personally didn't take part in the recent offer, but I will continue to add here when my " Goldies " come good, as I concur with your views re Altius.
Afternoon all, delighted with APF future Cobalt exposure, now that we have both Brazilian Nickel's Piaui project starting PNP1000 ramp up following the receipt of their Installation Licence recently, with first commercial scale Nickel & Cobalt Hydroxide production expected Q1 2022, and the Cobalt only stream from Vale's Voisey's Bay operations. which itself will significantly enhance our Portfolio Contribution by around U$23M per year according to the Presentation. I think personally that JT and team should be congratulated for closing this deal and is, along with Brazilian Nickels future pipeline projects, another progressive step down the transition of the Company to a " greener" future, to add to our existing Vanadium and Copper Royalties.