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Hi Davethedumplin,
I'm not able to answer your questions, but for me this is a speculative bet, there are certainly many uncertainties.
I am assuming that after one year of Strategic review that has not been helped by COVID, the chances are that Ironveld could have carried out placings to keep ticking along.
However the improved chances of Raising funds by including IIG as a substantial partner could be a far better route despite the amount of dilution at a lower SP of 0.42p (from previous RNS).
If this plan is successful, the value of the asset could be realised from the Ironveld point of view and if SP goes to multiples of todays share price then the dilution would have been well worthwhile.
So it is really on this basis that I am taking my position as well as my general optimism for commodities in the ongoing QE Western world.
GLA DYOR.
Sharegar.
napthman1,
That is an excellent point regarding Silver.
We will benefit at an increasing rate if Eric Sprott is correct about the Silver ratio getting much lower compared to Gold.
History is with us on that trend.
GLA.
I should also say that the statement continues:
A definitive Feasibility Study published in April 2014 confirms the project's viability to deliver an exceptionally high-grade iron product (99.5% Fe) called High Purity Iron which commands a premium in the market place. The shallow mineralised resource of 56.4 million tonnes of ore grading 1.12% V205 is approximately twice the grade of other Vanadium resources that are currently being mined and processed within the Bushveld Complex. Ironveld plc is an exploration and development company incorporated in England and Wales and listed on the AIM of the London Stock Exchange.
The Bushveld is a metallogenic province covering approx. 66,000km2 in the north of South Africa. It hosts many mineral deposits, including platinum group metals, Vanadium, Chrome, Palladium and Rhodium.
….and there it ends.
Attractive grades, shallow and a definitive feasibility study published in 2014 means that this should be a very good asset in a rising commodity environment we see today with currencies being devalued at unprecedented rates.
I'm taking my chances on this being a positive outcome. Much more upside potential than downside risk is my humble conclusion.
DYOR.
Just to clarify my earlier post.
The following statement is from the home page of Ironveld:
Ironveld has a High Purity Iron, Vanadium and Titanium project located on the Northern Limb of the Bushveld Complex in Limpopo Province South Africa. This project has the potential to become a vertically integrated vanadium mining and processing business serving the increasing demand for vanadium in steel alloys and vanadium redox batteries.
The company holds unfettered rights to:
80 million tonnes of magnetite ore - the JORC compliant mineral resources demonstrates holds 1.6 billion pounds of Vanadium, the equivalent to four times annual global demand
32 million tons of High Purity Iron in situ
9 million tonnes of Titanium
According to the Ironveld Website the saleable materials contained in its Magnetite ore would amount to 30M Ton of high purity Iron/1.6 Billion Lb of Vanadium/9 Million Ton of Titanium.
If the Iron is $107 US/Ton and the Vanadium Pentoxide is in the region of $6/Lb and unfortunately I have not been able to gauge the Titanium Dioxide price then I come to the following conclusion.
Iron Value: $3.2 Billion/Vanadium value:$9.6 Billion and can only guess the Titanium Dioxide value will be >$1 Billion.
So if my rough calculation is correct, the total in ground value that Ironveld has would be in the region of $13B+.
It strikes me that the Ironveld Market Cap is disconnected from reality.
Hopefully we will be much wiser about how it will all pan out by the 30th September. I am quietly confident that the many Months of planning with multiple interested parties will propel the SP up to a much higher level that is worthy of the Asset.
Please note: I am happy to be corrected on the figures I have given as I find it hard to get reliable information partly because of the different range of purities involved for such Metals.
GLA and DYOR as always.
Sharegar.
ferg.gg
I do not know what it means, but if the page includes all the ongoing Takeovers there would be a vast majority that are not settled. So why would EUA be listed?
I was wondering if there was an offer, but they do not reveal the bidder so that the bidders stock is not affected if unsuccessful.
But I just do not know what it means.
Can anyone explain?
Geng, I would disagree with your assessment of EUA. 15M PGM Resources with further potential growth (Flanks approved) and a plan of 1MOz production a year for over $2B Revenue at AISC of $325/Oz. UBS involved (Their average deal $2B plus).
However, in saying that lets not forget the tremendous value potential of AMUR. Over $20B value in ground and it looks like increased activity in a great market for commodities.
I expect big things from AMUR and would say the potential here is greater than EUA, even though I expect EUA will go up several multiples on a bidding war.
One question. Is it possible AMUR can do something similar to EUA in terms of apply for much more land which was possible under Russian law and is the one of the main reasons EUA has went up by so much?
GLA DYOR.
Sharegar.
My guess based on nothing more than the probability of bid was conditional of the Flanks being issued (which we have today).
I think the first bid will be revealed on Friday 28th Aug 2020 and I anticipate there could be a build up on share price leading up to such an event.
Why the slight delay in revealing a bid that might have been known about for some time? Again, I guess this would give the other potential suiters time to have a rethink of their strategy now that we have conformation of the Flanks.
That would be only fair for all those involved.
What happens after first bid will also be very interesting!
For context, On the TSX .
Guyana Goldfields was about 60c after initial bid (after coming from 30c) and has settled about 185c last I looked after a three way biding war. Could lightning strike twice?
I think so.
GLA DYOR.
My thought on the placing is that a potential buyer wants to carry out work on WK to maximise their investment, and if they do not win the bidding war (I assume they would bid at least 23p), then they will have made a healthy profit on the placing price.
So that would only be a win win situation.
It was telling that there was no discount and no warrants attached which is almost unheard of even in a strong Bull market for Commodities.
I believe the final offer is likely to be above £1 after my own research which has been enhanced due to the great information that has been highlighted by Rowka and Mac and many others.
For. I am invested in two TSX Miners. Southern Silver and Spanish Mountain Gold.
Southern Silver had a placement a couple of months ago at 20c and is now 50c.
Spanish Mountain was placed as low as 12c if I remember correctly a couple of months ago and has been as high as 70c recently.
I do not see why the II's will not do very well with that dip at 23p.
GLA DYOR.
Sharegar.
If you hover your mouse over the "Share chat" Icon at the top of this page, you will see that Rowka is at the very top for recommended poster of information.
So on that basis, keep on posting your findings Rowka even if it is a repeat to remind new investors.
Your information is valued very highly and clearly many find useful.
There are many more excellent posters of valuable information on this board who have highlighted information that many investors would not find for their selves, so keep up the good work and thanks from me.
GLA.
Sharegar.
https://www.gov.uk/government/news/uk-ais-commercial-deals
Is what you are looking for Mr Positive!
Now that Hawiah has a very substantial (grade and size) Maiden resource that is open along strike and at depth and the company is very close to a funding decision in Ethiopia for a Gold project that promises great cash flow for such a low entry point.
I think it would be worth considering a split in assets by region, with Kefi Gold and Kefi Copper being the result but only after Kefi Gold (Ethiopia) is able to be fully involved in future placings of Kefi Copper (Saudi) to stop dilution.
Both projects require different approaches and there is plenty of exploration potential in both countries over many years in our large land packages.
Any thoughts on this idea, or is it more prudent to keep everything in one package?
GLA.
Sharegar.
Now that the Kenya acquisition is confirmed, it will be very interesting to hear the exciting information that Eric has alluded to in several interviews that will make Kenya look an even better proposition than is already public knowledge.
The deal was structured at a much lower gold price and it looks like it only cost us pennies now!
Barrick has also been smart enough to gain value through the success of Shanta (Shares and Royalty). It looks like a win/win situation.
Singida is also another potential catalyst for value creation.
In the current financial climate it looks like the coming news flow from Shanta is going to be hard to ignore in terms of SP gains.
I think we have been doing very well with current mining operations and increasing cash flows/debt reductions that look set to continue at even better pace.
Companies are now starting to realise value from longer term projects and that is going to be one of Shanta Golds main strengths going forward IMO.
DYOR.
Alwaysone,
You are correct about the location of Vein 25. (It is confirmed in RNS of Sep 2019).
Has there been news as yet on the Rodnikova Gold Deposit?
This was reported in the RNS 20 Mar 2020.
In addition, the Group published a JORC-compliant Mineral Resource Estimate for the Rodnikova deposit in Q1; total Indicated
& Inferred Resources of 6.3Mt at a grade of 5g/t gold, for total contained +1Moz of gold.
The Group remains on track to deliver an initial scoping study for the Rodnikova deposit by the end of Q2 2020. This study will
assist in de-risking the project by establishing the framework for understanding the economics of future mine development
scenarios and will also provide guidance for near-term exploration programmes to maximise the delineation of further
economic mineralisation
The near term production from vein 25 alongside the Gold spot price has the makings of a serious re-rating of this company.
I think vein 25 and its significance is still under the Radar.
Any views on how likely we are to hit other significant veins in our land package?
Tjate could be the Jewel on the Crown for Jubilee once the Metals start to hit all time highs again (history repeats).
You just have to look at the amazing runs that miners had after the last (now considered small!!) Stimulus back in 2009-2012.
We are in very early days of what should be a super cycle.
Considering...Tjate NPV of USD1.1 billion (2012). Then I expect big things when the frenzy for projects really gets going.
As you point out Moneyhawk, we are in control with a healthy Cash flowing business that is looking better by the day.