Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Interesting read Prop. SML were awarded $22mill in damages, but are in line with the rest of the creditors. Could not see the total claim amounts competing for the $6mill held by receivers, which has potential to increase - but receiverships costs continue to eat away at this as well.
If this was my company with this claim, I'd plan on receiving a big fat 0, and anything else would be a bonus.
As well as being very heavily invested here, I also have a bit invested in XTR, and as usual bought some at the wrong time, and currently sitting just around break even. I do follow the iceberg's blog, and my hope with XTR was to be lucky with the drill, and prove up more that 2mt and trigger the Anglo American buyback clause, make a quick profit and put it in here - assuming we were still quite low. Cadia is a stunning example of a porphyry deposit, but it has decent grades of gold and also molybdenum. Bushranger only really showing copper.
I now think will make a profit at XTR, but not sure how quickly - and if it will be quicker than here. Mining exploration investment is not easy.
My first mining investment was CNR. On Friday more dilution and 10% reduction in share price. I am just ahead after years invested there, and know eventually I will make a good profit, but it's taken years longer than anyone expected - I had also been swithering about divesting from there an putting it in here - again missed a good opportunity. CNR have gold in ground, can develop open pit at low cost and get gold production quickly - need to arrange finance. Everything takes longer than hoped.
CNR - Nicaragua - has always worried me. My other mining investments are Australia and Canada - must admit much happier there.
https://investingnews.com/daily/resource-investing/base-metals-investing/copper-investing/types-copper-deposits-world/ for anyone interested in copper - and there will be a shortage and prices will increase.
But there might be more copper in Hav than Bushranger - some good Cu grades reported in last set of results.
I've always said I have put enough in GGP, but like many I keep buying more. Thinking carefully now what I do with XTR and CNR. Lot of impatience now on both those boards with SP not rising as quickly as hoped - a bit like here.
Big difference here is NCM - wold class mining co with huge underground mining experience driving, and they have a large capacity mine close running out of feed. We have potential exploration upsides, maybe better than others - only time will tell.
"share price falls on good news" - wish I had a quid for every time I have heard that on the GGP board over the last couple of years.
I just think there are unrealistic expectations for a very quick stratospheric rise in SP - it will take time - needs drilling results and assays. The II's won't really start piling in here until they are very sure there is a large and commercial scale discovery, derisked by drilling, assay results and some sort of study to show capex required and annual revenue/profit.
Also minerals sector sentiment has not been good lately, and a lot of the AIM money is away chasing quick and large returns in crypto, which I don't understand but wish I did.
GLA and have patience.
Hydrogen - excellent post. I agree with almost all of it.
I was lucky to be brought to GGP from another LSE board, and I researched, but was pretty much a novice at AIM and mining investment. I think being brought here and investing will be the best investment decision I have ever made.
I have never sold any, have added a lot in 2021, from 33 down to 16. Will not be selling, Hav on it's own is good enough for me to hold, and although it will not be easy to find another tier 1 ore body, we have good acreage. Finding another Hav is dreamland. They will not come along very often.
I have said many times on this board in my posts this is a long term investment if you want to get maximum value back.
Mining exploration and then developing a mine takes many years - NC are only going so quickly with Hav because they have Telfer desperately needing feed, and I think the speed and urgency will continue until they have enough feed for 10 years for Telfer. For future reserves and profits. Then even if Hav has more to give, they may slow down the exploration around Hav.
Their dilemma may be that if they want to buy 100% of Hav, it would be less expensive if they have not drilled it all. Who knows what will happen - we can only speculate.
Many Pi's cannot hold on for years - they do not have that luxury. They may have an investment aim of a return in a year or something for house purchase etc. I am fortunate - this investment is for my family - not really for me. I can hold.
Keep posting - I for one love the work you do and the information you bring to this board.
Doublehun - much unnecessary bad feeling between our clubs IMHO. WS was a great man - much to be admired. I am first and foremost a football fan, before any club allegiance. Although Sunday for me was painful in the EPL, Liverpool and how they played, and what JK has done can only be admired.
Hurtsy - my understanding is the rare earths project at Ernest Giles did not get mothballed - we gave up the licences - because there was no money left. Ernest Giles is becoming a very sought after area in Aus to have exploration ground.
I also had the thought that a TUN JV or buyout of Redmoor might be something they fancy. Not sure they would be interested in the LCCM/MOL prospect - but a buyout of Redmoor would give SML the cash they need to get LCCM up and running. With all the money spent on LCCM surely it will work this time.
Nobody more than me - or other LTH's want this BOD to get the PEPR and finance for LCCM sorted - and get some cashflow from that project to provide returns for shareholders and to develop Cornwall.
I am seriously worried they are arranging the finance with Brenda.
Guys who are that smart also would likely be holding on Wednesday - unless they have found an even better prospect to put their profits into!
"The Acquisition Agreement has been entered into today by the Company and ProspectOre, an Australian public unlisted company." Very hard to find out who the shareholders are.
https://markets.ft.com/data/announce/detail?dockey=1323-14560414-0NF39I6NIP2M39JSO0SN6MS74G
"The total consideration is apportioned as to £10,000 in value for licence EL8305; £10,000 in value for licence EL8306; £10,000 in value for licence EL8585; and £1,220,000 in value for licence EL5574 (the Racecourse resources lies entirely within EL5574)." much more detail in the article.
From Ian Wallace Linkedin page "ProspectOre Limited is the Australian subsidiary of Xtract Resources PLC (UK listed). ProspectOre holds the Bushranger Project that was first identified by the IQ Minerals Group before being vended into Xtract." https://www.linkedin.com/in/ian-wallace-1131a087/?originalSubdomain=au
Quintin Hills linkedin page "IQ Minerals Group is a private company that actively pursues mineral resource project development opportunities."
Anyway - if they brought Bushranger to Xtract and CB, very well done to them - and if they have held or cashed in their shares, very well done.
https://www.tungstenwest.com/regulatory-news
Schroders have 9% of Tungsten West - declaring after placing? Nothing to do with SML as far as I can see.
Funding can be arranged and announced - conditional on PEPR being awarded?
sorry - agree with comments about Alan Broome - it should have said.
I completely agree with the comments from AB.
If this BOD had any morals at all - they would be taking some sort of paycut, or even better taking part of their salary as shares/options - I mean how much work have they had to do in the last year for the huge salaries? This makes JP bonus last year even more unpalatable.
If the directors have sold before taking part in the placings - it would have to be declared - I don't know about the other placees who have bought the other 90m+ - hence why it would be good to have some idea of who they are.
There are 2 good assets here with potential - and a blundering BOD who so far have got very little correct, and have maintained an extremely good lifestyle from SML, which holding plenty other directorships etc, and continually failed to deliver and diluted and diluted. This RNS does not even make clear what the £400K will be used for, how much for Redmoor, how much for MOL and LCCM, and again another promise finance is close. Very little credibility.
Also to be interesting to know who else participated in the placing. Wonder if the Manners family are still investing here.
£15k each. Drop in the ocean from their salaries and bonuses. Hardly inspires confidence for me anyway. Hope I am proven wrong.
I also found it interesting that CB said they had stopped using XRF - due to cost, but probably more importantly you cannot take any JORC credit for the results - and still need to send the cores to the labs to get the truly accurate results.
So during exploration, they have geologists going carefully over the cores estimating % and type of mineralisation.
The XRF is likely to be much more accurate - and is believed in heavily by Newcrest who are using XRF Tru-Scan at Havieron.
But NC are drilling in a orebody and not a porphyry system.
I wonder if in time when there is much more XRF data to compare with actual lab assays if the JORC code will be changed to enable explorers to use XRF data. In terms of mine development time, waiting 2 month's for assay results is not huge given exploration to men development is at least usually 4-5 years and many times longer. However - can see it's value in exploration drilling.
Was also fascinating listening to how they nor decide on the areas to target with the drill. Modern technology allowing explorers to see deeper under cover than ever before.
Really enjoyed listening to CB on the video and kicking myself for not buying more when we were in the 3's.
signed - hope many others do the same
The Assay results will be fascinating, but important to remember that The NC and GGP team will have access to the XRF True-Scan data from each core as it's retrieved.
This must be a fantastic tool to have for managing drilling campaigns - especially in exploration drilling. If you are doing JORC infill drilling - then you are quite confident about what you are drilling through. Exploration drilling getting this type of data as you drill would be a great help - so I think NC/GGP already know a lot more than they can say.
Don't know if the Juri cores are being taken to the Tru Scan units before lab for assays - would be sensible. Would also be great if GGP could do this with 100% tenement cores - but NC would have to agree to this.
https://www.boartlongyear.com/drillingservice/truscan/
Shorting - I deplore it - could not run a petition but would sign one.
Could have been my post about JORC code you saw last week. Below is from XTR RNS on Bushranger acquisition in June 2020.
How I see it is that the type of resource used will affect the valuation, as Measured has much more certainty on what is there compared to Indicated which has more certainty compared to Inferred - as more drilling is required to justify each category going upwards. The JORC compliant person determines if enough drilling and geological data is available to categorise the reserve.
Much quicker and less expensive to get to Inferred as less drilling is required. More time and drilling cost moving up the levels. Copper price high now - so choice is strike while iron is hot - could drill more and take longer to increase valuation, but price could go down or up. Anyway - good bit of drilling and results still to come to make the 2mt Inferred.
Anglo Buy-back option
Under the terms the Bushranger Acquisition agreement, if a deposit of greater than 2 million tons of contained Cu equivalent (e.g. 450Mt @ 0.45% Cu equivalent) is ultimately identified, Anglo may buy-back 80% of the Racecourse deposit at fair market value as determined by an Independent Expert in accordance with the JORC and Valmin Code. Anglo and ProspectOre would then provide funding pro-rata to their interests, save that ProspectOre may decide not to provide its share of funding and be diluted, ultimately retaining a 0.75% net smelter royalty (NSR). If a "Decision to Mine" is taken by ProspectOre prior to the identification of 2 million tons of contained Cu equivalent, Anglo also have an opportunity to exercise the buy-back. Anglo have a once-only opportunity to exercise the 80% buy-back whether the opportunity comes through the discovery of 2 million tons of contained Cu equivalent or a decision to mine.
If Anglo does not exercise the buy-back and ProspectOre ultimately develops a mine, ProspectOre would hold a 100% project interest, less 3.5% in NSR royalties and a A$7.5 million development payment to historic holders (which includes Anglo).
Future Sale of Anglo Tenements
In the event that within three years of completion of the acquisition of the Anglo Exploration Tenements, ProspectOre sells the Anglo Tenements, ProspectOre must notify Anglo of the sale and if the sale value is more than A$100,000, an additional payment is due to Anglo equal to 50% of the sale value in excess of A$100,000. If the sale value is less than or equal to A$100,000 no further payment is due to Anglo.
Canary - I can only imagine this is the same thing as Hydro posted 1 - 2 weeks ago - we will just have to wait and see. Hydro's source told him it was a world first. I don't recall all the details. Like I say - waiting with great interest.
I also found Dipps slides incredibly helpful - thank you Dipp.
Also interesting - although we already knew they would be doing this - creating drilling locations on the decline - to save drilling through the 400m of top cover all the time. Open at depth and grades increasing with depth - so we will only discover in time what is down there.