Member Info for SGD27

https://www.proactiveinvestors.co.uk/companies/news/903349/kavango-resources-ksz-drill-programme-a-potential-game-changer-903349.html

Apologies, I meant "Safe" not "Sam"!

Hi Sam, I don't see any reason why a placing would be on worse terms than the last one. Also, I wouldn't expect them to start raising significant sums towards the build until the permit is signed off, just enough to keep ticking over.

So I'm not very good at guessing, but if you insist I'll say £300k @ 0.13p.

Thanks Dubliner, well spotted.

It seems that NewPerl is coming more to the fore - it's been promoted from the Appendix to the main body of the presentation. And from the last RNS but one we have this :

"Consideration is also being given to processing a bulk sample from the Company's NewPerl Project at the same time, for which a permit has already been granted."

Perhaps it's higher quality stuff than the main CS site?

Here's a link to the updated presentation, just for convenience :

https://www.sunriseresourcesplc.com/filemanager/Presentations/2019/Sunrise%20Presentation%2023%20September%202019%20V4%20for%20website.pdf

BTW2 lse still seems to be rejecting some posts at random - suggest copying text before submitting!

BTW, just in case anyone else missed it like I carelessly did, the latest RNS did include a location plan & a photo of the ball mill. These can be seen in the version of the RNS on the Sunrise website :

https://www.sunriseresourcesplc.com/downloads/sunrise-resources-plc-rns-cs-project-agreement-regarding-processing-plant-20-september-2019.pdf

Hi CC,

Dubliner gave some thoughts on this in his post on 14th Sept, which are well worth reading.

Based purely on the fund-raising history, we are certainly due for one now, and it does seem a big ask to be able to hold on till the permit is granted. So we may need a small 'interim' placing before then.

To get production started, even assuming we follow the 'low cost startup' route, we'll have to pay for the reclamation bond plus some infrastructure, even if it's just putting some fences up. But at that stage, with the permit approved, other funding options should come into play.

Once production starts to ramp up, we'll hopefully achieve self-sufficiency before too long, and can start saving up the pennies towards the processing facility. If we can repurpose the Millers plant (as per the latest RNS) then we should get there much sooner/cheaper. I am inclined to be cautious about this - bringing old equipment back into service is unlikely to be problem-free! But even if the grinding/processing kit is unusable, just the site itself with its infrastructure (electricity etc) in place should give us a head start.

Hi dj,

Regarding a target price, I'd start with the SVS January research note (linked on Sunrise home page). It's pretty badly written, with various typos & inconsistencies; but myself & some others here have done back-of-envelope calculations which are in broad agreement. Their "Price Target" is 0.41p, but this includes a 70% discount for an assortment of risks - as they stood in January. Since then some of those risks have fallen away to some extent (e.g. NGS shutdown becoming a certainty).

So provided all goes according to plan, it would seem reasonable to use their pre-discounted value of ~1.4p as the medium-term (1-2 year?) "target price". Others will have different figures in mind, I'm sure.

Longer term? Well, anything's possible. It's remarkable that we seem to be in the right space at the right time for BOTH our products. Of the shares in my PF, I'd say this is the one for which I have the highest hopes.

I assume it's the group of buildings south of Highway 6, here :

https://goo.gl/maps/1dfuJEvrBho24hSBA

Hi Bplanoyes,

No I'm still not seeing it either. Hope I'm searching in the right place - I'm looking here :

https://eplanning.blm.gov/epl-front-office/eplanning/nepa/nepa_register.do

selecting the "Text Search" tab, then searching on :

Nevada / All* / EA / 2020 + 2019

* It will probably be the Tonopah office, but just in case...

Hi Dubliner, re your Saturday post, this is my (simplified) list of recent fundraisings :

Jan 2019: 292m @ 0.12 = £350k
Jul 2018: 286m @ 0.14 = £400k
Dec 2017: 333m @ 0.15 = £500k
Jun 2017: 325m @ 0.10 = £325k
Mar 2017: 250m @ 0.10 = £250k
Jan 2017: 61m @ 0.10 = £61k
May 2016: 250m @ 0.12 = £300k
Apr 2016: 109m @ 0.11 = £120k

Just wondering if you missed a couple - RNSs of 24/01/17 & 26/05/16?

Regarding future funding requirements, I expect we'll be having to cough up for the reclamation bond before too long (hopefully!) - did you have any thoughts on when / how much this might be?

https://horizonteminerals.com/news/en_20190829-investor-presentation.pdf

@Dubliner, great list!

"by all means add to it"

Just a couple of things that come to mind:

* The price of oil is currently holding at a reasonably low level. (As I'm sure people are aware, transport costs have always been regarded as a potential risk factor.)

* Income will be in dollars, currently strong vs sterling. (Of course some of the outgoings will be in dollars too.)

https://www.kavangoresources.com/investor-relations/presentations/download?path=Corporate%2BPresentation%2BAugust%2B2019.pdf

Currently 20m for me.

OK, but the increased price doesn't mean it costs any more to produce, so why does it not all end up as increased profit? There's tax of course, which I wasn't taking into account. Not sure how much that would be (and not sure if the PE of 5 has already taken that into account?)

Hi Dubliner, yes, those figures ($90-120/t) certainly are much higher. Previously we've had :
$65/t - Beaufort research note, July 2017
$70/t - SVS research note, Jan 2019.
This is presumably the anticipated consequence of the fly-ash shortage hitting even faster than expected.

It's interesting to see how much an increase of say $20 ought to make to the SP (based on an admittedly naive calculation).

Take the start-up figure of 100ktpa, that gives an increase of $2mpa.
I believe that for this industry a PE ratio of 5 is supposed to be appropriate; so apply that, and convert to £, giving an increase of £8m in mcap.
Divide by 2.75b shares, giving an increase of roughly 0.3p.

Long term ramped up production of "up to 500ktpa" would give "up to 1.5p".

This is just the _increase_ remember. Could someone kindly check my figures, because I'm really struggling to comprehend our current SP faced with numbers like this!

Just for those that care about such things, I can tell you that the "sell" of 50,000 @ 7.6p is actually a buy.

For anyone interested in researching a little more deeply into carbonatites, this recent article is quite comprehensive :

https://www.researchgate.net/publication/328174359_Carbonatites_related_ore_deposits_resources_footprint_and_exploration_methods

Here's a quote from the abstract :

"Nine per cent of carbonatites and alkaline-carbonatite complexes contain active or historic mines, making them outstanding multi-commodity exploration targets."

So if we do in fact have up to 10 of them at Ditau, there must be a fair chance of eventual success.

Hi Dubliner,
Yes, initial perlite production was projected to be 20ktpa earlier this year, and he's now saying 25-40.

Also confirmation that rented mobile equipment will be used initially, so keeping down the start-up costs.

BTW my name isn't Sam, but as you just bought 5m shares, you're forgiven!