Member Info for Tornadotony

I picked up 3000 at 152.47 for the ISA where I had spare cash.

Second support at 146p.

https://www.econindustries.com/ They developed a means of dealing with NORM for the oil industry.

42m93lvmv1kv4q.pdf (asx.com.au) Old data that just show how the TREO is not homogeneous and that exploitation has to and will require a well planned mining operation. Also to note Coola is 16KM away has carbonite rock and is another major source for feedstock. The company may explain if the NdPr concentration as a sulphate is being separated from thorium which may be precipitated out as a phosphate.

Yes we have a gap below from 1 April from 104.1 to 105.05. However we now have a gap above at 110.66 to 112.6 created today. With gold hourly RSI in just 12, I sense the kitchen sink has already gone in. We shall see for sure in the coming days.

All in at 107p. We have nice gap in the chart above us between 110.6-112p area. My average is within the gap. Good enough for me.

If we have to wait to make an 80-1000% return on our investment so be it. In the next 3 months, money in the bank probably earns 0.1% at best. Nothing to do with hope, I believe it will happen. At least a nickel mine is not bitcoin art garbage or buying a make believe farm or some idiotic fancy as institutions can not find something sensible to put money in that has future real value. Mind you it will be that kind of investor who can buy my HZM shares for 65p.

https://www.reuters.com/world/india/monsoon-covers-two-third-india-earlier-than-usual-accelerate-crop-sowing-2021-06-14/

Quite often monsoon and gold discount happens at the same time.

I can not recall ever seeing it that low. Very rare to dump gold $120 within a month.

Second tranche bought 107.4p. Two more to go.

Buy back at 15.175p. Will buy more if it goes lower.

Centamin was moving down in front of the gold price retreat. The lowest CEY is going to retreat to is 102p and the highest it may go later in 2021 is 130p. My average is now around 114p or so. I have more buying to do if it dips further otherwise I see 15p plus upside. Trying to get a bottom or top is luck, but cost buy and sell higher averaging works really well on Centamin. Those who sold at 122p are probably happy to buy back at 109p and enjoy the second dippings.

What have they got for brains.

Value is not the total revenue which is taxed and everything else. Furthermore the recovery rate is only 70% at the present time. Furthermore the value is spread over 30 years of revenue. £2.3B x current recovery rate= £1.61 billion. Lets say 25% of the revenue is actual net profit = £400M they have 475M shares = 89p per share minus the cost to get into production. Lets say its £80M in total with capex over asset life = 67.3p and then minus depreciation, rehabilitation post production and other business costs not related to the asset probably gives a top price of 60p. The two years in debt repayment will have the stock price at half the figure.

All of the above of course values Burundi at nothing. I also believe the share price would be influenced if dividends got paid out and so may always be 30p something, but 4% yield given per year.

Response to Monarch

The company has to set out all its finance arrangements to bring into production, which i suspect is a bank loan of say over 2 years in which they pay it all back. The announcement of that arrangement in place increases the enterprise share value. The company will then clarify how much their production costs are so that we can see what revenue minus production cost is. the company then remove tax and any royalties they have to pay. They also have 30% going to their partner on what remains. All this visibility allows the market to give a PE rate on earnings.

Lets assume the company processes 1 million tonnes for the sake of argument per year and has a life of production of 38 years. Lets say they only get 8 PE rate being in South Africa and takes into account 2 years of paying back loans. The annual revenue becomes 70% of 123M =$86M per year and lets say the net profit is $25M after debt repayments and tax. The company has 475M shares and so they earn 5.2 cents a share. At 8 times earnings this is 41.6 cents a share or 29.7p.

Of course the process rate may be higher, and after debts are paid the profit is greater or they are awarded a better PE rate.
There is no doubt in my mind that we should be moving up from 13p to 19p. I guess it will happen over time. I therefore give an idea of how it might pan out. Tony

Miners are ignoring gold drop so far. So only bought 1/4 my allocation. Acting as average down.

I can see this taking off. The big boys wake up at 9am with coffee.

I do understand but that is not how the market works. The upgrade today is 10% on bigger stacks plus a change of 33% conversion of inferred to 50%. The previous valuation of 19.1p x1.1 =21p x 50/33 = 31.8p mineral in the stack price or the price per share if the company was bought tomorrow. This is still a massive increase. I bought at 13.59 yesterday and I bought at 14.4p today. Only when Rainbow is in production some of your maths guys come into play.

The actual stacks were 10% larger than before an extra 3.5 million tonnes.

Interesting dynamic in the coming weeks. Will continue to buy if they offer cheap shares.

Inferred to Resource conversion. Company value should be 6p higher with the RNS.