The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
We’ve had multiple Missed Turns and Broken Promises. Best share on AIM we used to say. Four years ago in May 2017 we were at 3.5p, the SP is now 86% lower at approximately 0.5p!
The target SP for June 2021 was 7.5p. Even is we recover to circa 1p (which is far from guaranteed), we’ll still be massively adrift of where we expected to be. Bad luck or bad decisions? You decide. We can’t blame the metal prices as they have recovered better than anyone expected.
All in my own opinion. DYOR
Lupi - Agreed ‘We are still waiting to see the program of events/presentations/tours that our BoD have lined up to take advantage of this once in a business life opportunity’
It will be great to see what the BOD has planned for next month
Boris Johnson is urging world leaders to embrace a green economic recovery at the G7 to ‘build back better’ and ‘create a better future’ in the wake of the pandemic. It’s maybe why he has chosen Cornwall to highlight the potential- ‘because we want to be the exemplar of a better tomorrow’
The PM has previously stated that: “Two hundred years ago Cornwall’s tin and copper mines were at the heart of the UK’s industrial revolution and this summer Cornwall will again be the nucleus of great global change and advancement.”
Question for everyone on here - Why is SML’s market cap £10m and Cornwall Resources (South Crofty) is £40m?
The August 2020 study presented:
US$156m NPV at an 8% discount rate
31.3% IRR
17Mt @ 6.7% ZnEq (including Pb credits) resource (JORC 2012) including indicated resource of 3.8Mt @ 8.1% ZnEq (including Pb and Ag credits) - 4% cut off
700k tonnes per annum operation with a 7.6% ZnEq mined grade
US$79m upfront Capex and payback in Year 4
3-year trailing average metals prices of US$2,668/t for zinc, US$2,099/t for lead and US$16.5/oz for silver
US$963m Revenue over Life of Mine (“LOM”)
US$477m Opex over LOM
49% Operating Margin (US$63.56/t all-in cost)
With some limited tweaking, this project looks viable.
If some of the inferred resource can be moved into the indicated category that would be a big positive. Additionally, if the payback period can reduced by a further 6 to 12 months that would make the banks / investors very happy. The Final piece in the jigsaw is extending the life of the mine and resource (which is open at depth) - this may come later on though once the mine is in operation etc.
The PFS and then full feasibility study could take 18 months to 2 years to complete and Mining could commence in 2023/24.
Current Mcap looks extremely low.
My short term target SP is 50p and medium term £1+
All in my own opinion. GLA
Does anyone know if the full PEPR application was just for Paltridge North or was it for the whole thing including the Lynda and Lorna Doone deposits also?
If it was for the whole thing, the latter could have been the sticking point as they require more sources significant development / infrastructure including upgrading the road / dirt track etc.
Put all my life savings into this one at about 1.20p. Pretty much at breaking point now. Had a chance to sell at 1.40p and at 1p. What an idiot I’ve been!
Look set to sell now at below 0.50p at a massive loss.
January 2018 (3 years ago) was when we acquired our LCCM ‘Near term Asset’.
Excerpt from an RNS from May 2020:
SML is pleased to announce that the Company's wholly owned subsidiary, Leigh Creek Copper Mine Pty Ltd ("LCCM" or "Leigh Creek") has today lodged a draft program for environment protection and rehabilitation ("PEPR") with the South Australian government.
We’ve been at 0.42p for about 14 months now which probably makes us the most static share on AIM.
Summer 2019 saw us at 1.60p then halving to 0.80p in the autumn of 2019 (I remember DVH buying his ‘1p trading shares’ in August 19) - I thought that was the bottom also, but it wasn’t as we halved again in early 2020 to 0.42p.
We’ve been largely unaffected by Covid, so the shocking SP performance cannot be blamed on that! The original BOD options of 7.5p and 10p presumably still remain in place, but have recently been replaced by 1p tickets. GLA
Someone said yesterday, can a Government go back on a decision / revoke an approval?
I would suggest they can - Governments change their minds and policies all the time. Will they or not, we don’t know and only time will tell.
The problem is that the big boys / Institutional Investors and funders like to minimise risk of any type all of the time. I heard on the radio yesterday that Greenland now want to promote eco tourism. The Dundas project may not fit with the new Government coalition which certainly now has a more Environmentalist core. The people of Greenland have voted and there’s a change in Government.
Of course the country has to provide economic stability, but how they go about this will be decided by the politicians and the big mining players may look elsewhere if they see too many hurdles / barriers.
I have no ulterior motive here and I wish all LTH’s every success. I’m just trying to present a balanced view etc. IMO GLA
English - I agree with your post.
However, do you think an Environmentalist Collation Government will want the beach taken away; and the subsequent potential environmental impact of that??
I really hope I’m wrong, but I’m out.
Funders and mining operators need the ongoing continued support of the in-situ Government for any project - will they get it now??. Good luck all LTH’s IMO