Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
The placing churn drying up
BTC new ATH
BTC break $100k
US miner profits from overnight miners coming into ARB
Impressive results
Wall Street targets keep increasing for ARB
This will be 200p+ by year end in my view
Lots of moaning on here!
A little bit of patience and the sp will really start to move, could be a strong breakout north when it happens
Took some
Value on offer here
10 reasons I’ve been building a EML position over recent weeks & added 4 times this week, please do your own research, the company website is a good source:
1. Potash is an essential commodity, even in a macro market downturn people still need to eat, potash is vital for human survival. Long term outlook is good.
2. The Potash price now is around double of when the feasibility study was done
3. Post tax NPV of $1.4bn at previous Potash prices
4. Pre production capital costs less than half the global average
5. Post tax average cash flow of $235m, this would be ~double at today’s Potash prices
6. 19 years mine life, this could increase significantly
7. Morocco is a forward thinking economic region, a gateway to the world & has a supportive government / community
8. Management strongly indicted they have £4m in cash and the next raise should be with a strategic investor (not retail, listen to the recent Zak Mir Podcast)
9. Market cap of £48m vs. the project size. Market cap as a % of NPV is by far the lowest vs. peers, under 5% !
10. Timing, it’s been a long hold for long termers, a few smart investors I know have big long positions and have been patient, again listening to the recent Zak Podcast Hayden Locke said within the next 3-6 months the “dominoes are going to start to fall” he hinted strategic partner may be sooner
The two massive items holders are waiting for is a strategic partner & EISA approval, one or both of these should cause a rapid re-rate in my view
EML Twitter recently:
“The Company is working towards achieving approval of its Environmental and Social Impact Assessment (ESIA), which has now progressed to its final stage. The development of Khemisset will also help to consolidate the kingdom's emerging position as a hub for fertiliser industry.”
As always with AIM & small cap investing there are plenty of risks !
I like the risk vs. reward with EML
Do your own research !
Most US investors won’t know just how good are vs. peers
Best to build a position prior to the big news, I’m fairly confident this will be many multiples in the not too distant future.
For long termers, well held.
For new buyers, good find.
Sub 6p looks a great buy
I expect this we’ll see this above 200p soon
Well done buyers here today, lots coming soon for RUA
I can see a volatile day tomorrow
Hope this isn’t the start of one
Most people invest for Empire, Empire is an amazing asset however Red Star has massive potential for PXC
Great to have a quality Silver mine too
Very strong fundamentals
Extremely undervalued Potash play
Tiny market cap vs. NPV
Strategic partner expected
Board confirmed no placing this year
Excellent project economics that were calc’d at much lower Potash prices
Potash price very strong with bullish forecasts
Good jurisdiction with global access
Looks a good buy here IMO
Post from Telegram:
PXC
The Empire Open Pit Mine
Significant increase in economics as we stand due to improved metal prices, most macro analysts are expecting higher prices by when we start production, late NEXT YEAR
Empire mine production isn’t a distant pipe dream in a risky, volatile jurisdiction, it’s in Idaho USA with a supportive local community
The equity side of bringing Empire into production is compete, the Board have stated we are funded into production and into 2023 where we’ll be throwing off significant free cash flows
First year is Copper & Zinc production, PXC’s model is based on $3.6 Ib Copper (now $4.72 lb) & Zinc $1.2 lb (now $1.73):
Based on $3.6 Copper & $1.2 Zinc, year one figures;
$90m net revenue
$56m EBITDA
$43m post tax cash flow year one
(Figures from company presentation)
Copper up 25% & Zinc up 30%
Let’s add 15% being conservative to cover any costs which may have gone up.
$104m Revenue
$65m EBITDA
$50m post tax cash flow year one
(Crude calculation)
Pre production Cap Ex is $52m, so we are at 1 year payback right now!
These figures are for year one only, Empire Open Pit is a ‘starter pit’ to fund exponential growth in other mines & deep sulphides
Remember the recent Empire deep sulphides drilling highlighted the potential for improved Open Pit resource
So the investment case is now;
- £69m market cap
- £8-12m in cash (my estimate)
- $50m free cash flow starting from the end of next year
- Idaho USA, supportive local community
- Multi metal miner, less volatility risk, a range of mines
- Empire mine is only 1% explored
- Cobalt (risk free) JV in-progress with First Colbalt Corp
- Navarre Creek Carlin type Gold resource, drill programme this year
- Red Star Silver mine alone is worth 31p/share at $19oz Silver based on 2020 resource (Hardman & Co)
- ADR programme will only increase demand for shares, incrementally over time
- The Board are proven with good skin in the game
- Top class Institutional Investors like Cannacord are onboard
In my view if you are a commodity bull there is no better risk vs. reward mining play on the UK market
Please do your own research
The value of what #PXC have in Idaho USA is now phenomenal
Copper
Silver
Gold
Zinc
Cobalt
Lead
#Copper production NEXT YEAR
Not a distant pipe dream like many others
Equity part of funding complete & Debt payback will be ~1 year at this price
Should be well over 100p now
500-700p LT
Back in
Bought more
Huge upside
Simple
Accumulate shares whilst sub 100p
In my view this is going to 500-1000p within 5 years
The market cap here is so tiny vs. what’s on offer