Member Info for SickOfTheRatRace

Happy new year to fellow long suffering LTH's. Will this company still be around to wish you the same in a years time? Who knows.

Written this one off to be honest.

Lots to look forward to this year, JSE listing news should be close now and that means we move to SETS too.

Thank you Clicknow1.

Well I am certainly enjoying the action today, eventually I will get back in the black!

Wonderful news that the first deep is flowing.

In terms of selling the deep oil internationally will the process be the same as for the shallows? Prove they can flow for a while then request the permit?

Hope you are right RK, unfortunately it is more likely that an already expected drop is income will again be used to bash the price down. Ideally we need one of three things, the Vanadium price to start marching north sharpish, confirmation of any contract award or confirmation of electrolyte sales starting. In the interim may the current increase continue!

Just to qualify my last message, when I say "this company" I refer to Regent Pacific not Plethora.

Let's face it this company has turned out to be a total basket case with a CEO that does nothing except take exorbitant salary for no results. I hold shares here from the PLE days but only because a) I have been locked in by Halifax who can't trade them and b) they have fallen so far anyway they are as good as worthless. At current exchange rates they are only worth 1.2p.

You win some you lose some. I can't see this going anywhere unless they get FDA approval and manage to sell or licence the delivery mechanism for a nice sum. We are now a whisker away from 2020 which shows just how mismanaged this has been.

Great product, horrific management.

In which case I would hope our CEO would think twice about allowing them in again. We need strong and stable sticky hands not flippers.

Apologies, wrong way round. SOLG have about 25% less shares in issue but are currently being valued at five times the EUA market cap.

The point stands that they are valued significantly based on assets in the ground which EUA should also be.

lamtree SOLG have more shares than EUA in issue and have been loss making for years. Yet they are 19p today. They are being valued on assets as EUA should be.

It's unfortunate that it is a blocked word given that it is a standard term used in refining.

Nick, great to see you back :-)

Yes $42m needs to be found for phase 2.

If we assume that tin production will be free thanks to tantalite and at 5,000 tpa, then at today's price at 92% that's $80m a year profit. Assuming a ramp up and say 2,500 tpa in the first year, that's $40m profit or the cost of the plant covered in the first year!

If tin was at a target $20,000, that's $100m a year profit. Afritin don't have a huge amount of other capex requirements for other projects at this time. However even if say 50% was held back for other projects and the rest returned to shareholders, even if we were diluted to 1bn shares that would still be a dividend circa 4p.

Again this assumes nothing for Lithium or other basket items!

Incredible for sure.

Absolutely and as a reminder Anthony said in the interview that we are getting 92% of the LME price for tin so if we assume we are getting the spot price then $17,422 * 0.92 = $16,028.24.

At 65 tonnes p.m and $15,000 estimated costs that's $66,835.60 profit or $802,027.20 for the year (simplistic as the price is fluid).

That's why the tantalite (and later Lithium) are transformational to the economics of this project because if we do realise $150,000 a tonne for the tantalite then the tin cost becomes free and the annual tin profit becomes $12.5m, plus any Lithium or other basket sales.

"Michael Baxter has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro."

Absolutely agree and I will use tantalite going forward in any postings.

Alfa, thanks for clearing that up about tantalite vs tantalum.

In terms of calculations however it appears the numbers will be exactly the same.

In the interview Anthony says at 25:17 "take the tantalite and sell it for $150,000 a tonne."

So it would appear the previous calculation using the ratio 10:1 would be the correct one, albeit tantalite instead of tantalum.

@lamtree only you need concern yourself with the share price, for your re-entry point. I am holding for the asset sale and even if that doesn't happen then Montechundra production is worth a minimum of 3p a share so win win.

The shares are not going to zero despite what some people would like some investors to think.

If you are here for the asset sale then daily movements have little consequence. Whether the share price is 1p, 2p, 3p, 4p it doesn't change the value of the palladium in the ground.

Another thing to bear in mind for phase 2, they are targetting tin recovery increases from 60% to 80% per the guidance. That will reduce costs per tonne significantly once they get more concentrate out of the same volume of rock.

@Pro5pector1991 the estimated capex for Phase 2 is listed as £42m (AfriTin Mining Corporate Presentation September 2019)

In terms of tin to tantalum ratios I can only go by the very latest information given by the CEO which is 10:1 as per the Crux interview released this week. Perhaps this information is based on actual recoveries they are enjoying from the plant whereas before it was an estimate.