Member Info for TarryBreeks

It will Prop, and even then still only just enough to cover the LTH 10p party expenses ;)

I think it's 1M Slurm at 0.045AUD so we're up 100% but it's only around 90,000 AUD - just about enough to cover the 10p LTH party expenses.

Argh, it was your earlier post about GSN that inspired me to put my list together Prop and I forgot to add it?!

For anyone new to the board a quick summary - SML:

- Awaiting an arbitration decision on a $21m claim for breech of contract by one of our major clients - decision due this week
- Producing $3m at ~ 50% profit margin from our magnetite operations at Cobre in the USA
- Firming up our 100% owned Redmoor Tin/Tungsten/Copper JORC Inferred Mineral Resource and Exploration Target in Cornwall of 4.5mt at 1% SnEq
- In advanced stages of re-commissioning our 100% owned copper mine and tenements at Leigh Creek in Australia with a 100% offtake agreement in place - further funding required likely by joint venture.
- Exploring nickel prospects at our CARE licenses in Australia

Details here: https://www.strategicminerals.net/ :)

You can buy mine Prop, 10p each ;)

That's more like it boys and girls!! Go team SML! :) Now let's bring on the tsunami and juggernaut JP!

An award is enforceable by the courts which, in the absence of payment, could instruct asset seizure. No-one is above the law. Unless the major client is run by .... Cummings.

I would imagine the bod would look to sell equity in LC in return for cash to buy equipment but we may not need that if we have a modest settlement from arbitration. We're claiming $21m and our market cap is £8m - even if we're awarded 25% of our claim you would expect to see that reflected in our share price.

We should find out this week Fira. Perhaps there is a get out clause in the contract we're not aware of but from what the BOD have said I can't really see how the Cobre client has a leg to stand on.

Even with no settlement if we go JV on Cobre reducing our expenditure and direct Cobre revenue to Redmoor we should be fine. It will just take a bit longer, unless we have a JV partner and free carry up for Redmoor too.

Agreed on cashflow Sammy. Cobre still expected to bring in $1.5m profit this year though without the major client and any arbitration or forfeited deposit.

Dilution the VOD stated that they would not seek to dilute shareholders and instead seek a joint venture at Leigh Creek to expedite the project.

Finally on the major client extenuating circumstances are fine and something you negotiate on. We were very reasonable on timescales. I seem to recall there being mention of environmental approvals being sought by the client? What you wouldn't expect is a letter of intent to increase / continue deliveries only to then renege on the whole contract. I'll keep an open mind on damages but I'd expect the magnetite payments (and deliveries) to be honoured as contracted.

It's played out that way so far Fira but I suspect what we pay for Redmoor now will look very very cheap in years to come. Arbitration settlement should mean equity to NAE is avoided and we should know next week :)

I'm not sure that's fair Fira. As I recall the Redmoor placing was a result of cashflow issues due to the Cobre client. Placing wasn't open to shareholders but JP explained why and i thought it was reasonable.

Leigh Creek should have been up and running already, no doubt. Cashflow which we had projected from Cobre evaporated as a result of the Cobre client. We were and are overstretched without the income from our contracted major client income.

The BOD were attempting to secure a second source of income to mitigate risks of over reliance on Cobre. This experience highlights why that's needed.

All we can do is play the cards we're dealt. Have a nice weekend all and let's hope the sun shines on SML next week :)

You may be right Freaky - we should know next week.

I'd just point out that we currently have a market cap of ~£8m and we have sales at Cobre in the 12 months to march 2020 of US$2.7M (https://www.lse.co.uk/rns/SML/q1-cobre-magnetite-sales-and-cash-balance-update-3828ft5751l8egr.html)

Sales are down, of course, as a result of these issues from highs of US$6.2M so the impact has been significant and I would argue in part if not wholly priced in to our current market cap / share price. Remember we were trading at 2p+ without Leigh Creek which we now own outright. JP said the team at New Age were flexible on the final Redmoor payment and they've certainly been massively patient.

I appreciate AIM is sentiment driven and sometimes defies logic but:
- Leight creek has a book value of US$6.8m,
- Cobre which the board expects to produce circa US$3m in sales and US$1.5m in after tax cash in 2020,
- Redmoor: the juggernaut (pending final payment),
- CARE which could be massive .

These assets, in theory at least, should help underpin our current share price. IMO Cobre alone should underpin the current share price.

My understanding is that arbitration was part of the contract so the client could either have fulfilled the contracted sales or be subject to an arbitration decision.

Arbitration is much cheaper than litigation for all parties involved yet the ruling carries the same legal weight as litigation and is equally binding.

Perhaps we are not aware of all aspects of the case but from here it looks cut & dry. We should know the outcome within a week assuming no covid-19 or other delays.

I've no idea what the sp will do but if we are successful, and there's no reason to think otherwise, we can expect the courts to enforce any award and that could include seizure of assets. I would then fully expect SML to aggressively pursue settlement because otherwise what's the point of a contract if you can just ignore the terms when they don't suit?

Remember this is arbitration, not mediation and the outcome is binding. If the losing party dislikes the decision then it can offer the other party a settlement on other terms or appeal the decision to a court to overturn the decision. The winning party can also take the decision to court and ask the court to enter it as a binding judgment and execute judgment as if it had been litigated in that court.

The client may also have insurance that covers part or all of any settlement award.

Great news on the PEPR although a little later than expected it's progress and that's what we need at Leigh Creek. The nature of the JV may depend on the settlement of arbitration so we may, if timescales on the decision remain as expected, several updates in quick succession.

Onwards and upwards. Friday RNS anyone? I wouldn't want to be out of this over the weekend what with a juggernaut and a tsunami on the way :)

Agreed Fira, I'm being a bit tongue in cheek with all the tsunami references of course but if JP is going to go about talking about Juggernauts and Tsunamis of cash he's only himself to blame ... until he actually delivers them.

At this stage I'd be very happy to have some closure on the whole debacle and whatever cash we can realistically obtain - the more the better obviously.

Seven working days left in May - tick tock!

JP will be riding the tsunami with your first instalment Fira and PW will be following on behind in the Juggernaut towing your next wadge of cash ;)

Just picture in your mind's eye JP surfing towards you on a tsunami of cash Fira; probably wearing a Hawaiian shirt, holding a pina colada in one hand a wadge of cash in the other with your name on it ...and he's delivering it within the next 8 working days! ;)