Member Info for TarryBreeks

Yes quite possibly they could have nb_riley and I wish they had but they didn't. This whole saga underlines the reason we need a second income stream and I totally agree it left us wholly exposed to a client now under investigation by the SEC.

At the time we were expecting $4m from the Cobre client nb_riley as stated in their letter of intent from May 2019. It's only in retrospect that it seems foolish not to raise more.

I guess it was an impossible position we had to settle on Redmoor and cash from Cobre client just kept being kicked down the road: $4m letter of intent, arbitration (no settlement), now client receivership. Leigh Creek tsunami hasn't materialised yet.

JP talks up our assets and operations (as he should) but was, in retrospect, too optimistic about revenue from Cobre covering all our other operations. If everything had gone according to plan we wouldn't be diluting now we'd be surfing JPs tsunami of cash (bet he regrets that comment).

Okay so trying to look at the positives

- Redmoor acquisition is now assured
- Waiting to hear more about the $22m arbitration settlement (will we get all/some/none)
- Sales are still up at Cobre ~9% yoy
- Leigh Creek still attractive at current copper prices with 100% offtake agreement in place
- We're not placing to keep the lights on: this is for an asset purchase.

Hopefully the bod have some good news up their sleeves - with an average WAY over 1p I could certainly use some.

We need an equity partner with financial muscle on Redmoor DV. Look at GGP who have Newcrest doing the exploration and development for equity and that's before MRE. With 100% we're in the driving seat.

As for Leigh Creek the recent chat in dilution from the bid was in relation to not taking this approach at LC. As for funding/progress at LC not sure I guess it's all about the JV.

Sigh.

Well I suppose we can now, at least, put the Redmoor purchase to bed. No doubt there will be a few visitors on here gloating but it removes uncertainty at Redmoor. Existing shareholders will be allowed to participate so at least the bod have listened.

My interpretation of this was the SEC investigation was instigated before arbitration however this *may* be a good thing the SEC has way more teeth to freeze assets albeit we may find ourselves in a queue for any liquidation. It mentions freezing of assets of related parties too. Ultimately we as lowly shareholders have no idea who the client is or what assets or other debts are involved so we just need to wait and see.

I think the share price doesn't have any settlement factored in IMO; despite what DJ says.

We should know more in a few weeks.

DJ "I’m not negative on SML on this point in time and at this SP".

Eh ... can I suggest you read your own post DJ? You are spending quite a lot of time on here for someone who's no longer invested. You've no idea what will happen with the arbitration settlement or Leigh Creek, same as the rest of us.

You've really nothing to go on for that DJ other than your personal opinion. You also have no basis for stating they would have settled as you don't know the details. We spent ~$20k on arbitration and I fully expect some of our $22m award to be recoverable.

Also a fact that Leigh Creek is still financially attractive even at current copper prices.

I don't share your view.

- $22m + interest awarded - we'll see on recovery
- Cobre is cash accretive: covering our costs which have also been further reduced by 25%
- Final installment pending for Redmoor but New Age have been very flexible on payment terms may be a cash shares settlement
- No other pending cash requirements other than Redmoor

Perhaps you missed it because you're not invested naked 'truth' but $22m + interest just been awarded to SML in an arbitration settlement. :)

Hi Blacksheep, interesting one on timing for the brewery - has business improved or declined as a result of lockdown? I can imagine loss of sales to pubs but perhaps balanced or exceeded by direct sales to consumers? I don't normally drink much but must confess I've been enjoying a cold one from the fridge over the past few weeks while enjoying the sunshine.

Thanks Fira, delighted to see you're feeling more positive today :)

That's the spirit Blacksheep - are you still supplying the beer for our 5p party?

Morning smlers :)

For anyone new to the board or in need of a quick summary - SML:

- Awarded US$21,929,259 plus additional interest for breech of contract by one of our major clients on June 1st 2020 - payment pending
- heavily invested BOD with ~8% shares in director hands
- Producing ~$3m per annum at ~ 50% profit from our magnetite operations at Cobre in the USA. Sales up 8.8% year on year with sales of ~ 40,000 tonnes pa and 700,000 tonnes stockpile
- Final stages of purchasing remaining 50% of UK based Redmoor Tin/Tungsten/Copper license in Cornwall with over 11.7 million tonnes at a tin equivalent grade of 1.17% (open at depth)
- 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

More details at https://www.strategicminerals.net/ :)

I emailed LSE about the missing RNS and they'll look at this and add asap.

From RNS: "Client's assets seized as part of a US Securities and Exchange Commission's investigation with the Court likely to appoint a receiver to manage the assets of the client mid-June 2020"

Receiver appointed mid-June, I wonder how long after this we will have some idea of where in the line of creditors we stand, how much the company assets will be worth and what may ultimately be recoverable of the $22m +15% award.

What we do know is that:
- contract was watertight
- our client was/is dodgy
- we're in a good position to recover funds as available
- we still have the magnetite

I don't know why the RNS hasn't appeared on here though, seems to be working for other stocks.

I wonder if the BOD will push LC along the JV route and use any funds recovered from this exclusively for Redmoor.

Disappointing to see the muted sp, while we don't have cash yet our bod has been vindicated and we can still sell the magnetite (again) so we're 100% up on any loss of profits awarded. :)

SML and pro active also tweeting about the result:
https://twitter.com/SML_Minerals/status/1267344887084695554?s=19
https://twitter.com/proactive_UK/status/1267345155054542853?s=19

Great to see the arbitration decision go strongly in our favour the contract clearly was watertight and the material effect on our position considered by the judge.

Despite the client's current position I remain very hopeful we will see some of the settlement allowing us to progress with LC and Redmoor at a faster pace.

:)

Hopefully news tomorrow :)

Until then it's a wee beer in the sunshine for me.