Member Info for SomeIdiot

I think people should temper expectations on the JORC - unless I'm wrong the drilling results received so far are mostly aimed at upgrading the resource quality (inferred -> indicated -> measured) rather than increasing its size, so while I expect the updated resource to be superior quality I'm not sure it's going to be that much bigger than the existing resource - that's the job of the Beehive drilling, which will probably take some time to come through. Don't want people to be disappointed and dump the stock next week when the resource doesn't double in size.

Ralph, it's a mineral resource exploration company. Everybody knows it burns through cash and has to raise from time to time, I don't know why you're behaving as if this is some dramatic revelation. SML KS actually in a better position than most exploration companies because it does have some operating cash inflow and some of its exploration costs are refunded by the local government.

Damn, did the share price that's gone up by 50% in the last 5 days go down by 1% today? Game over guys, game over

That's nothing new, it's been there for months - some of the reviews on that item are from May.

Glad to see this rising today, but I can't figure out why? Has something happened? Someone on another board mentioned an RNS, but I can't see see one.

Tungsten West has atrocious grades though, you have to extract and process six times as much ore there to get a tonne of tungsten compared to Redmoor.

RAB have been selling out of a few holdings and recently made a £450k placement in Harena. They could be pivoting to rare earths given all the recent fuss

RAB seem to have been selling a lot recently, they've been doing the same to BRES at an odd time to sell, with a JORC upgrade and DFS coming up - would love to know the reason. Maybe they're facing a lot of redemptions?

Sorry! For me the only risk with the PFS is that the plant capex might be higher than expected. I think Mike has said a couple of times that they've kept a decent lid on opex, which is good. The capex:NPV ratio is key though, so hopefully the plant isn't that expensive.

For me the only risk with the DFS is that the plant capex might be higher than rxpect

I think (hope) it's just excited traders who were piling into every mineral stock over the last couple of weeks selling out now it's clear that this isn't going to the moon in a matter of weeks, so it's just a case of too many sellers in a short amount of time. Hopefully once they've gone we're back into a rising price - feels very oversold to me.

Https://www.bbc.co.uk/news/articles/c3vnr45x5qyo

I can think of one company that could help!

It could be for any reason, according to filings RAB have been selling down since at least this time last year. Certainly there are big opportunities all over the small cap space at the moment.

That FerroAlloy DFS isn't great, $520m of capex for a $750m NPV project! There's actually very little cushion there for things to go wrong (and the product price is apparently pretty optimistic too). I'd hope ours would be much better - our PFS capex was $62m vs a $482m NPV.

Fundamentally, a good DFS needs to get lenders and sophisticated investors comfortable that, even if things go pretty wrong, they'll still get their money back. The FerroAlloy DFS doesn't meet that test. Ours needs to.

US pre-production graphite companies were up 30% yesterday. Could use some of that sugar here!

Yep, and the processing plant is in Ohio of all places - the best part of ten thousand kilometres away

Merchantbanker - great minds...

Graphite One is definitely one to keep an eye on. $6.4 billion NPV per the March 2025 DFS but market cap of just $190m (most of which has come in the last month). The initial NPV -> market cap read-across is pretty bad (mcap at 3% of NPV after the recent runup, just 1% before it!), but looking at the DFS it seems like a very risky project - $4.9 billion in upfront capex! They assume a pretty hefty average selling price of $7.8k per tonne (looks like they process it very heavily) which is why the NPV is so high, but it all seems very overengineered - their product basket has SIXTEEN different products, none of which they have any offtake agreements for.

If anything, for me this emphasises the importance of having a low barrier to investment (i.e. keep your initial capex as low as possible) and of demonstrating that there is actually a market for your product via offtake - BRES seems to have taken this on board thankfully. The Graphite One DFS seems to have been engineered to arrive at a massive, but practically unfeasible, NPV.

There's at least a couple of US graphite projects actually - Westwater in Alabama and Graphite One in Alaska. I don't know too much about them, but Westwater at least seems to be in some sort of development hell. Looks like Graphite One completed a big feasibility study earlier this year.

Thanks Bandy, yes they'll have been progressing everything else in the meantime! I was impressed by the people they're working with on this - I think Siemens are doing one of the majority studies.