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John Peters, Managing Director of Strategic Minerals, commented:
"The claim against the major Cobre client has been meticulously reviewed prior its issuance and comes after the breakdown in negotiations with the client.
"While the SML group will actively seek suitable compensation from the client, the Board and Management believe that its operations should not rely on any future payments due under this contract until received. Accordingly, the Board is continuing to review its projects and examining the preferred methods of funding such development.
"The Company remains in the fortunate position wherein the profits from the Cobre operation continue to fund overheads and contribute, albeit at a lower level, to project development. Further, as 100% owners, the Company can dictate the pace of progress on each project, as holding costs on each are relatively minor."
on the top risers board today...long time since that happened...come on JP make the next RNS a Ripper!!
yes DVH.....LC is the where the energy and investment need to be. The whole point of buying LC was to create a second income stream that was fully in control of the BOD.
Extract from 11th April RNS:-
"The feasibility study for the commencement of full-scale production from Paltridge North and Rosmann East, and submissions associated with government approvals for mining these areas, are well advanced and scheduled to be completed in Q3 2019." Nearly 4 months since an update on LC, looks like one is due in Q3....this is what I am most interested to see progressing further.
The Cobre situation, even prior to the major client, was always a strain on the sp with the reliance on a license to access renewal every year. Even though this was always considered a 'given' it continued to cause concern for shareholders and potential investors and this was reflected in the sp. LC was heralded as the answer and when we raised for this at 2.25 p the long term plan was for this to establish itself as the main income source. The BOD took their time exploring the best way to get the optimum return out of LC and the initial testing of the cones and production was a success and we made our first sales. We need to focus on this now....Cobre will continue to keep the lights and allow for some investment....Redmoor, well I think the BOD were caught in a difficult situation there. They didn't want to miss out on the opportunity of buying the remaining 50% from NAE and given that NAE were already finding the finance required to progress the project a strain I think they acted with a degree of haste. I haven't been able to pin down exactly how they were planning on financing the acquisition with the details in the RNS timelines and maybe the $4m was factored in, when quite frankly, we've all heard the ' cheques in the post' in business too many times to count that chicken.
I think the last couple of months have proved a real challenge for the BOD but when you boil it all down, as some of the more reflective shareholders have expressed, what has actually changed with the fundamentals of the business.....
This is, and always has been, a long road. 2019 was supposed to be transformational, progress has been made with LC with the first sales, we own Redmoor 100% (and progress this at our leisure now), Cobre is still ticking along....yet we have hit a new low for the sp in quite some time....this is AIM....we were at 3.6 p with a fraction of the assets we have now (okay with more shares in issue now but still....) we got there on sentiment and hope.....
I still have faith in this company and the BOD....testing times but the fundamentals and long term business plan still looks good to me...
Yes DVH...Next week will see the Q2 Cobre trading statement and cash balance update....this will hopefully provide some comfort if the other Cobre clients are all back to normal . It will give a better perspective of life without the main client should that issue not get resolved.
morning dvh and all...yes what's not to like.....my feeling is the RNS for receipt of monies will land during the working day (whichever day that might be!).....funds don't appear overnight....as soon as they have them in the bank they will release this to the market.....all IMO of course
interesting......
I'll take anyone of those dvh.....have a great weekend SML'ers....things are hotting up and I don't just mean the weather!
dvh...perhaps it's Nickel and he knows something we don't....no seriously there all manner of reasons why people sell. I just don't have the luck to sell and buy back at a cheaper price.....if I did I would have more than double the shareholding I have now...there's plenty to be made here, just need to be patient. Lots of different ways to make money on AIM, whatever floats your boat...or in our case gets your juggernaut rolling....
I am starting to think at some point this share will fly, like a coiled spring, it's building and at some stage the sp will reflect the progress the BOD have made across its portfolio....something is going to let the brakes off....Cobre shaping up again, LC ramping up production, Redmoor PFS...a surprise at HC.....it's all there...a 50% increase within a week is quite feasible given the right news...all IMO DYOR etc etc. Not ramping, don't need to here, just stating my point of view based on the fundamentals.
JP demonstrates his deal making prowess yet again. It seems whatever the problem, he has a solution....long may this continue to be the case.
Tarry...one word my friend...patience..it will prevail.....sit back and enjoy the ride because the destination is inevitable....
that's all you need here....been saying this for the last 3 years...SML is an oasis share in a desert of lifestyle dross...look at the fundamentals here.....the value of the assets they have picked up....LC...the market punished them for taking the risk on an operation that previous owners could not make profitable. All it needed was the right expertise and some cash, SML have proven again they can progress projects by employing and contracting the right people. And as for Redmoor....we'll look back on these 1.5 p days with open jawed amazement. Frugal with their cash, only ever raise to add shareholder value, cash generating on two fronts, operating in safe environments with local community and government support, BOD heavily invested with an incentive plan of options that look ever more likely, or dare I say guaranteed.
If you have been sitting on the side lines and waiting for the right time to get in with the minimum of risk investors....well here it is...it wont be at this bargain price for much longer
As for Nickel....well all things considered this BB has been a source of much research shared and we are lucky to have a mixture of balanced ideas and thoughts all given and discussed in good humour. And very lucky IMO to have CornishKnocker to provide very in depth technical analysis.
Well done to all LTH's and keep the faith....patience will prevail.
Looking forward to the 5.5 p party....and then the 10 p one!!
Morning DVH and all......DVH I think it'll be yet another reason to drop the sp....until the next positive RNS
DVH...mistake...I know what you are saying but you still made a good profit...my mistakes have always gone the other way...that was as hell of a rise though....if only SML could do that...
In OZ they're pretty big.....in the UK 25 tonne payload on a 44 tonner...out there on a road train...over double.
I'm not going anywhere...on any trips or out of this share. Great interview....how often have we said that!!
I loved Tarry's very simple post...Cobre pays for LC, LC pays for Redmoor, Redmoor pays for our retirements (or whatever else one should decide to spend it on!)....very nicely put..
So much to look forward to here and all the ducks lining up on the runway.....selling their first copper cement next week! LC is going to prove to be the golden egg here.....as for Redmoor.....well whether you prefer Juggernaut or World Class...it;s going to be BONZA!! Okay it's in Cornwall not Oz but you know what I mean! GLA
Morning DVH....I agree......although I am no longer surprised at the market reaction to any of the goods news we keep getting. My thanks to Cornish for is ever informative technical posts over the weekend.
Long and strong everyone..our time in the sun will come....
There's nothing much stranger than AIM....patience is all that is required here. Time and time again the BOD have delivered on promises, communicated well, been honest and upfront about the 'speed bumps' and only ever raised to add shareholder value. Add in they hold 7% of the shares and operate in safe countries with the backing of local communities/government.......
How many AIM companies can boast all this.....LC is the game changer....proven it works....resource upgraded already...further potential....copper price in our favour....offtake in place....export potential for global market via the local port......$5M in profit forecast for 2020 with 2019 revenues building.....
As I say patience required. Invest now while the market watches and waits....when the Cobre main client issue is resolved that will be the first move north....all IMO DYOR
Have a great Easter all SML'ers...
Just listened to the podcast, my thanks to mk for the link.
PW always gives a good interview. Concise and informative, enthusiastic but also measured. I wonder how long it will take for the market to wake up to LC and stop focusing on the current 'speed bump' issue at Cobre. $5M in profit.....as a second income stream....AB said previously they have taken their time to iron out all the issues with LC to 'guarantee' the best return for shareholders (which to the tune of 7% inc. the BOD's)....they have already proved it works....what more does the market need.....oh yes people to get in now at this silly sp and be patient.
Copper Cement...cheap to produce, offtake in place, 85% of the price of copper metal and we don't need a £10M plant......if copper goes up, so does our cement....!
And not forgetting Redmoor (World Class Tin/Tungsten MIne) and what ever they turn up at Haans Camp
LC looks like one hell of a deal.....and covered in full by the upgraded resource.....:)
Recent RNS....LC...if they had said wev'e hit an issue with the Leach process and we are hoping to get things back on track.....well that wouldn't have gone down well with me or anyone...BUT THEY DIDN'T !!!
LC has produced it's first Copper Cement already......IT WORKS....
There are all manner of reasons why people sell....and buy.....they are buying here because they believe in the BOD and can see where this is going
Patience and trust required....expecting JP to pop up on a vid today giving us his Aussie smile!!
All IMO DYOR etc etc
it is clear to me now having read all the comments and re-read the RNS and previous RNS's regarding Cobre and the pre-payments that we need clarification. I can't be sure exactly where we are now having gone back over the ones for the Dec and June qtrs.
I see that corporate overhead costs have nearly doubled from the Dec qtr ($140,000) to the March one ($271,000). We know they don't act fast and lose with the money but I would be interested to find out why such a big increase.
We await an interview with JP for clarification on Cobre and some more insight into the exciting developments at LC which todays news has proved was an absolute steal of a deal. All IMO.