The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
So, we’ve had a ‘shovel ready’ copper project in South Australia for about 3 years with an NPV of over £30m. Copper is more or less at an all time high, but seemingly there is no interest in the project which is very strange??
Additionally, very poor communication by our BOD in respect of this project. Presumably they think that it’s ok not to give shareholders an update on the second ‘copy and paste’ PEPR which was submitted for approval about 16 months ago??
I’ve genuinely forgotten when this fiasco started, were the shares suspended in April 2020 or April 2021. Can’t remember if it’s 3 years or 4 years. Can anyone remember?
Let’s hope that this pending grant application doesn’t drag on over the summer. There will likely be a General Election in the UK in the autumn and probably a change of Government. Would a new Labour Government be as keen on grant funding mining initiatives in Cornwall? Maybe or maybe not.
Very low volumes here since the positive news flow last week, which would suggest that the market isn’t the slightest bit interested in SML.
It was a great interview on Proactive yesterday and reassurance was given that no ‘raise’ was necessary to fund the mining licence as that would come from Cobre profits etc. Things look nicely poised, but for whatever reason, there was no significant interest in buying shares below 0.25p. Perhaps investors will be happier to buy in at a higher price when the permissions and grant funding are in place etc.
The market / mm’s appear to have accepted a baseline Mcap of circa £4.5m for the one active operating asset (Cobre). It’s likely that the market is assigning no value is currently to the other two projects.
As we’ve learned from experience here, nothing happens quickly - LCCM was over 12 months to get the first PEPR approved and now we’re again over 15 months in on seeking approval for the second ‘copy and paste’ (important PEPR) which may or may not be approved. We’ve also had multiple suitors in our ‘data room’ over the last 3 or 4 years; all of whom have seemingly walked away?? If we sell it or if we get a partner with working capital to get it up and running then the market may assign a value on that project and it could be written into the balance sheet as an asset.
Now Redmoor is the interesting project, which again has stalled over the couple of years; but this could be the saving grace for SML.
Circa 20m tonnes at 1%+ grade is certainly feasible. However, once again we think? we are awaiting grant match funding and have other partners interested, but again this is unclear due to lack of concrete / specific detailed communication. Anyway, a positive spin / funding or JV proposal could provide some decent SP traction.
So Cobre only maybe SP of 0.30p
Cobre + sale or JV at LCCM maybe an SP of circa 0.60p
Cobre + LCCM + Redmoor then maybe an SP above 1p.
However, we’ve had multiple deadlines / promises missed over the last 5 years and importantly we’re not now seeing the market / investors scrambling to get in at 0.25p for a 4 bagger, so what does that tell us??
Anyway, all of the above is my opinion only, I’m sure you’ll have your own thoughts on the matter.
DYOR Good luck - 2024 maybe?
A few thoughts………..
Why would our Board need to borrow a mere £50k for working capital? The bottom line must have been very very tight?
Why would the board say that they potentially may not be able to take on this additional new client at Cobre when they have at least 7 years supply of magnetite?
Why is the grant application still progressing at Redmoor, I thought it was submitted months ago?
Why has the second ‘Copy and Paste’ PEPR not been approved when it was submitted well over a year ago?
Why have we not seen or heard from AB for months?
Just a few thoughts.
And we now also know that there’s at least 20m shares available for sale at 0.30 as some LTH’s run for the exit!
Are we all done here??
My ‘life savings’ investment of 6 million shares for £64k is about 96% down. I’m not looking for sympathy here at all, I invested based on what I heard and it was one of the worst decisions of my life. For anyone please thinking about investing in AIM though please take note!!!! SML are not unique - multiple similar companies have been in free fall for the past 5 years. Just bear in mind that AIM is very high risk with only limited Governance / regulation should anything go wrong. It’s a bit like a roulette wheel really, the odd person gets lucky on the odd investment, but the majority of small inexperienced investors lose their money!!!!!
Come April 2024 and Mustang will have he held onto our monies for 3 years. Limited communication during that time & little clarity (in layman’s terms) as to what is actually going to happen. Shame on you guys!!! Are we nearing the end, or will 3 years become 4 or 5 years??
Dear BOD
Copy and paste PEPR at Leigh Creek from nearly 12 months ago - update please
Redmoor Grant application / process & expected decision date - update please
We were told that Multiple potential partners have been in our data room - update please
LCCM due to commence commercial operations in 2020, 2021, 2022 and 2023 - update please
The ‘cash cow’ Cobre which has kept us profitable is no longer doing so and we apparently needed 3rd party funding to keep our heads above water. Update please
Your shareholders deserve answers to these questions
So, as a LTH (circa 8 years), my 6 Million Shares which cost me £66,000 are now seemingly worth nothing as I Couldn’t even get a price to sell them.
Maybe a de-listing is on the cards or maybe the bottom draw for another 5 years. Presumably funding for LCCM is now completely out of the question? I mean how do you get approx £5m working capital to start the project up when the Mcap for the whole company (all 3 projects) is only £2m??
Sorry times for all holders here. Presumably the ‘significant’ Shareholders are all still happy though?
Poor communication by the BOD to the Shareholders here. I realise things are complex, but some communication in layman’s terms would be very useful i.e. we expect to commence trading again by????
Dear BOD
30th June Redmoor soil samples - update please
Copy and paste PEPR at Leigh Creek from nearly 12 months ago - update please
Redmoor Grant application / process & expected decision date - update please
We were told that Multiple potential partners have been in our data room - update please
Positive news flow promised in the final quarter of 2023 - haven’t seen any? update please
LCCM due to commence commercial operations in 2020, 2021, 2022 and 2023 - update please
The ‘cash cow’ Cobre which kept us profitable is no longer doing so and we apparently needed 3rd party funding to keep our heads above water. Update please
Your shareholders deserve answers to the questions
Three year lock in maybe?
Are there any rules surrounding ‘suspended shares’?
Presumably if we’re still in this situation in 2 or 3 years time we can possibly do something?
It will soon be Christmas and then Easter.
Maybe we’ll be treated to a 3 year lock-in.
You’ve got to laugh!! Or will we be handsomely rewarded???
We’ve been told that Redmoor is the largest undeveloped Tin Tungsten mine in the world and if the shareholders have been told that, then the UK Government will also have been told that as part of the grant application process. If that statement is true and the Government is serious about its Critical Minerals programme then my view is we’ll likely get a match funding grant offer. This could be the trigger to significantly improving the SP and sentiment around this share.
The overhead survey and soil sample work (completed at the end of June) could also provide evidence to support the view that Redmoor is a much bigger resource at depth and to the west. Additional future drilling as part of the pre feasibility stage could lead to a full completed feasibility study for the project and it wouldn’t surprise me if the project doubled in size to over 20 million tonnes at Circa 1% and a NPV in excess of $200m. Now that is a big project which would turn some heads. All in my own opinion. GLA