Proposed Directors of Tirupati Graphite explain why they have requisitioned an GM. Watch the video here.
No problem with Bitcoin selling. His handle might have been a clue that he was perhaps not a long term investor. Anyone who had managed to secure 20m in the low 0.40’s would always consider a 50% gain to sell at circa 0.60p. Can’t blame him. We all have our strategies and a buy and sell price in our minds. The best strategy - works every time is ‘buy low, sell high’ - lol. Problem is no one knows where the current low and high is, but surely there is more upside due here for a while yet, not least with the PEPR news pending. I bet DVH hasn’t sold yet; and I bet he’ll be retaining a few 1p trading shares further down the line. GLA
Trouts post yesterday was very astute and gets my backing:
‘We still have just over 400m shares that are authorised to be allotted towards any fundraising, if there is a spike in demand for SML shares then the BoD should think about placing them?’
A brilliant solution I think. How about this:
Wait for the Pepr approval and a possible SP surge above 1p and then raise say £3m (£2.8m after costs) by issuing 300m new shares at 1p. The SP may retrace slightly, but unlikely. The outcome would be that we have the funds for LCCM and retain 100% ownership. The day to day operational activities to run the mine can still be contracted out, but 100% of ownership and profits are held. Also the Lynda / Lorna Doone project could be brought forward. IMO. DYOR
The Redmoor mine in Cornwall, is a resource of 11.7MT at 1.17% grade. The resource is open at depth and down dip and it’s possible that circa 20MT + is in situ.
Headline from SML is that it’s in the worlds top two undeveloped Tin Tungsten mines for that grade / quantity. The Local Government are receptive to mining and the Post Brexit national Government drive to promote UK industries will kick in during 2021. Additionally, the G7 summit in June will no doubt reiterate Cornish mining heritage and the recent resurgence in mining projects.100% ownership of the mine is in place.
All in my own opinion. DYOR
Fira - MUST I admit to it?
Ok just £1.5k - something is telling me it looks like it could do something??
NAE looks interesting for this year also with their exploration targets, but as it’s on ASX not straightforward to buy shares.
Very little free float of shares here.
One the few shares on AIM where the MM’s don’t have complete control.
Any sustained buying pressure and the SP could easily double even on no news. Many GGP sellers will be looking for a new ‘punt’ and if MUST catches their eye and a small herd arrives then boom. GLA. DYOR
Now that the initial Scallywag results have come through, let’s hope a few investors In GGP sell up and look for a new investment; maybe a punt in SML. Plenty of Copper, Tin and Tungsten on offer at a Mcap below £10m. DVH - put the word around about SML in your inner circle - lol.
The Labrador mine stock is down to 27 cents on the US market - the lowest it’s been since Christmas.
What do we have final part - part 4
The current SP appears to be only assigning a value to Cobre and it can be assumed that the perceived current Mcap of £8m is for Cobre only with no values assigned for LCCM or Redmoor.
If finances and a suitable way ahead is proposed for these other two assets then the Mcap and SP should rise significantly.
Sentiment also needs to return to SML. Additionally, Commodities are on a bull run which is a big positive for us
The BOD say that the SP / Market Cap is significantly currently understated.
Is 0.42p the bottom?
Could we see 1.5p or beyond by the summer?
All in my own opinion. DYOR
What do we have part 3:
Currently own 100% of LCCM and associated tenements covering quite a significant geographical area and also adjacent to very rich (globally significant) copper resources.
Leigh Creek was badged as a significant second income stream with a very short lead time to become operational, but nearly 3 years down the line it’s still not up and running. Plant and processing problems have dogged the restart plans. Additionally, finance to get the plant operational again has proven elusive to secure and it may well be that a significant chunk of the asset will have to be given away as part of a JV arrangement once the PEPR has been approved in Feb / March. Copper selling prices have increased well above the $3 per lb value which is what the new revised PEA was based on.
A processing cap of approximately 100 tonnes of Copper cement a month appears to be being proposed. Not sure what the problem / limiting factors are with the plant.
Also, £5m needed to build a 2nd plant at Lynda / Lorna Doone in the medium term, so we would expect any SML profits from years one and two at Paltridge North to be set aside for construction of the 2nd plant. An Off take agreement for up to 300 tonnes a month is in place with Adchem in Adelaide.
We also have tenements at CARE but these are on the back burner at present.
All in my own opinion. DYOR
What do we have part 2:
Redmoor in Cornwall, with a resource of 11.7MT at 1.17% grade. The resource is open at depth and down dip and it’s likely that circa 20MT + is in situ. Headline from SML is that it’s in the worlds top two undeveloped mines for that grade / quantity. The Local Government are receptive to mining and the Post Brexit national Government drive to promote UK industries will kick in during 2021. Additionally, the G7 summit in June will no doubt reiterate Cornish mining heritage and the recent resurgence in mining projects.
Probably at least £5m already spent on acquiring 100% ownership of the mine and also the detailed drilling programmes already undertaken.
Way ahead is unclear. SML have no funds currently to further enhance the PEA. Additional drilling would be costly and moving the project forward to Full feasibility stage would probably cost a further £2m and would take circa 18 months. Options are presumably an outright sale to the highest bidder, a further raise to undertake additional drilling and or a PFS. Or possibly option 3 to work with a third party on a JV basis who would then move the project forward at no financial cost to SML, but the partner would require a percentage of the ownership of Redmoor and or royalty guarantees should the mine ever become operational.
Key outcomes from any future PFS should be to:
- To increase the overall resource to nearer 20MT and maintain the metal grade at well over 1%;
- To ensure the NPV is well over £100m;
- To keep the capex / build costs of the mine below £100m;
- To keep the payback period on the project short at 3 to 4 years maximum;
- To increase the IRR to circa 35%;
All in my own opinion. DYOR
What do we have part 1:
Cobre, which generates circa $3m sales per year and ‘keeps the lights on’ for the company covering all normal day to day operations / costs for the whole SML group. Seemingly when investment / upgrade / repairs are needed for Cobre, there appears to be little or no residual profit for reinvestment etc. Probable lifespan (stockpile) left is 5 to 8 years. The limiting factor for the Cobre magnetite operation appears to be the logistics / cost of transportation. The contract is negotiated annually in February.
All in my own opinion. DYOR