Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
This has been a long time coming and fantastic news. Just topped up.
Some of the cashflow projections of this concession lare very impressive and justify a price on its own of at least 0.5p-0.75p.
An off-take deal on top and we're back in serious business.
IG103 side track has increased production from 3,707 to 5,129 boepd, that's almost 40% increase in production since Q4. This will bring Ukraine & Russian production to over 10,000 boepd. This shouldn't have come as any great surprise since it was flagged in the last quarterly update "encouraging result from this well has exceeded our expectations with an initial rate four times higher than that tested in IG103 historically", today's announcement is confirmation of that.
Directors have been buying around the 40p+ mark and have won one of their smaller tax claims. Cash and inventories (cash equivalents) rose by over $8m last quarter to $23m (from $14.8), this was twice the rate of previous quarters and doesn't include IG103 production uplift.
I expect JKX to climb very steadily towards the 60p+ mark over the next 3-6 month and this has been reinforced by BDT's 1.5% stake that he announced today.
The sustained elevated nature of UK natural gas prices will have a phenomenal impact on SQZ's revenues. They've been over 50% on average higher of their original projections (2017) for BKR alone. In the last 10 days prices have picked up again by about 10% — https://www.theice.com/products/910/UK-Natural-Gas-Futures/data?marketId=142522&span=2. Erskine is also coming back just when prices are increasing again.
I can't wait until Serica reports their year end financials.
A hugely exciting company.
Alfa Bank has been a holder since 2013. The release of their 24% holding is exactly what was needed to see value come into this stock. While it's great to have this much liquidity, assuming it's not been taken by another oligarch, now that this seller is gone this can hit 50p without too much trouble. Cash grows to $50-55m by year end 2018. Next year cash could grow to $100m with their huge new reserves and larger drilling programme. Exciting stock.
The key to understanding their strategy is in LJ's previous statement in May: "I am very excited about the opportunity that lies across the entire licence and am pleased with the strategic direction we are taking to fully understand the full potential of the deposit Kazera owns. This will provide shareholders with full details to assess their investment and allow the Company to realise maximum value whilst providing highly important strategic choices." While their commentary has been poor regarding production details, they've been consistently saying it's all about the very large licence area they own. My best guess is that this business will be sold to a larger entity by next year. I can't see any other strategic rationale for the way they've operated to date.
It seems prices have bottomed - spot price has moved up from 20.45 /lb to 22.65/lb in the last two months. Supply reducing slowly � https://twitter.com/quakes99/with_replies This is probably a takeover target for one of the big boys in due course.
i3 Energy got their licences in the 30th Offshore Licensing Round Award yesterday: http://www.lse.co.uk/share-regulatory-news.asp?shareprice=I3E&ArticleCode=brxyipgg&ArticleHeadline=30th_Offshore_Licensing_Round_Award Their share price increased 25% yesterday alone and is up 50% in the last month and 350% in the last 4 months. On a separate note, it's hard to imagine that BP & Serica's experienced management teams would have gone into the BKR deal without a backstop plan to preserve most, if not all, of the entire BKR deal, if Rhum was a deal breaker. With today's licences, resolution to BKR and the other assets coming on stream this company is growing significantly and I wouldn't be surprised to see its price steadily increase to well over �1 and keeping going to �2+ in 2019.
Do you mean Larry Johnson (New Guy?), KZG's CEO worked for Weatherly? I don't think so. https://www.linkedin.com/in/larry-johnson-b4210a63/ Please clarify.
Good to see a director buying and a decent amount of shares too, almost 7m. It looks like with the Chinese supporting the Open Offer in a big way there is quiet confidence in Mwana's prospects. Hopefully there will be more directors buying soon.
It's very obvious that Mwana's prospects are predominantly aligned to the price of nickel. If it starts to rise again as many analysts predicted it's a game changer, nickel was up 4.4% yesterday but from a very low base. Some say we're at the end of the commodity cycle, and if we're not there yet it shouldn't be too long helped by some Chinese stimulus. I believe 2016 will be a much better year for nickel and the long awaited technical analysis starts to play out (sdemand outstripping supply for the first time in many years). Re-starting the smelter would also make the economics more compelling but the nickel price is still the key. Executives at Glencore seem to support a recovery story as they dig deep into their very large pockets. I expect many to do the same at Mwana, our assets are still very good and timing is everything in mining. The other critical issue is C3 costs - these seemed to have been rising in the last 18 months when they were due to fall, this was an area which previous management under Kalaa never seriously tackled. If new management can get a grip it's another part of the recovery process. Re-starting Klipspringer looks like a diversification strategy and probably wise as they can't control the price of nickel. I will be taking up their Open Offer. Good luck to those who can afford to be patient.
Mugabe launches charm offensive as Zimbabwe's economic woes mount In a 25-minute speech yesterday, Mugabe welcomed western re-engagement and urged a strengthening of ties with multilateral bodies like the International Monetary Fund (IMF) and the World Bank. He also cited China’s involvement in infrastructure, agriculture and energy projects. ----------------------more on line if you search using the the heading above------------------- Maybe our connections with the Chinese could be very favourable in the long run. I would very interested to know how good their/our contact is at government level compared to Mr Mpinga (who was a great charmer but did not deliver on his promises). A nice little tick up yesterday.
These look like a solid set of results and notwithstanding the pressure on commodity prices there are some encouraging comments from the Chairman's statement: 1. confident that the relationship Mwana enjoys with its host governments and with external providers of finance will flourish. 2. commodity prices will eventually stabilise at sustainable levels and that we at Mwana will manage our operations profitably despite any further price weaknesses. 3. In Zimbabwe, the government has been and remains particularly supportive of,Mwana’s efforts to boost beneficiation of domestic nickel. 4. Once the smelter is in operation our attention is likely to turn in two directions – the feasibility of re-starting the Bindura Nickel refinery and the feasibility of restarting the Hunters Road project and the financial options of such a development. 5. At Freda: by the year’s end virtually all the technical problems that had affected the milling of ore and plant recoveries had been resolved. Production has been assisted by the installation of crushing equipment ahead of the milling circuit. There are challenges but the smelter should allow us to make money when nickel is higher than $9,500 (circa new C3 costs with smelter). At 12,500 this could translate into 7,000 tonnes x 3,000 = $21m. At 14,500 = $35m. Keep an eye on the nickel price to judge our prospects, they are expected to gradually increase this year.
I've also been in this share for a few years and think the opposite, probably for the same reasons you bought into Mwana in the first place. If you have doubts are they based on facts? You need to articulate some basis for your hunch. Shareholders deserve a little more rigour so please share your findings otherwise your comments will be seen as unsubstantiated hot air. Let's see what tomorrow brings.
Most of the negative commentary in the last month on boards has been at best speculative by those who are not long-term holders - we should be highly suspicious of their motives. While the new nomad/broker appointments should have been announced much earlier, there must have been good reason for it. These are excellent appointments and it's good to see them splitting the roles. I believe Cantor Fitzgerald has much greater international reach than Peel Hunt, this could be good for Asia. If we get a decent statement from the company and reasonable results in the coming weeks this will take us close to where we were - 2p+. This would then give a decent platform from which to grow although commodity prices, especially nickel, is a short term concern to our cashflow. Any decent pick up in nickel to say $15,000 would put us in a very strong position with smelter coming on stream in the next 6 months. As long as the Chinese can keep in with the politicians in Zim and DRC the future should be bright. Let's see what the next few weeks brings, we deserve a few breaks after what's happened to MWA in the last year.
A solid set of results in what should be an upbeat week for Mwana with their main subsidiary making $15m profit before tax. Add a new nomad/broker, Mwana results and a company statement on its future and we should get back over 2p. The smelter is meant to be worth $25m in net cash terms when it kicks in because the transport costs alone save BNC about $11m per year. If they can make savings on electricity and overheads they can deal with low nickel prices. If nickel ticks up, as most analysts predict, then BNC should fulfil its promise.
Yesterday's RNS is very reassuring for now and should put the price back on an upward trajectory. It seems people have been misinterpreting Peel Hunt's decision to stand down as a covert plan to delist which it is not. It appears the company is working on plans to build a stronger financial base so that it can withstand lower commodity prices should they persist - this is a very prudent. As PH was Nomad and broker and have no interest in Mwana's future, I think one could say in caused some panic selling and the fall of over 50% is totally overdone. Essentially there hasn't been any change in the company's prospects and in fact one could argue they are in far stronger position if they are cutting costs and is working on a long term plan. Investors need to stick to the facts rather than overreact to one decision. Keep the faith.
How can the ex-CEO be so bullish when interviewed a few weeks ago (see link below) - it doesn't make sense for investors to sell up now. Mining is a slow business so I can't see what has changed with the fundamentals. The Chinese know Zim well so I see this as a great buying opportunity. If we get a new Nomad and a statement on where the company is going soon we're no worse off. Obviously we need a good CEO also, preferably one that knows the Southern Africa region well but with so many mines under pressure that can't be too difficult. http://www.***********/ceo-interviews/ceo-interview-with-mwana-africa/
I tend to endorse Silenzi's view. The Chinese are also very influential in Zim as we all know. We've been in the doldrums for so long I'd like to see what a new team can bring to the table. Our Sp has been stuck at 1.8-2p for a very long time and I guess the price should nudge slowly up from here. This is a long term business and we'll know much more in a year's time.