Member Info for Tornadotony

Https://www.bing.com/images/search?q=reverse%20Head%20and%20Shoulders%20Continuation%20Pattern&qs=n&form=QBIR&sp=-1&lq=0&pq=reverse%20head%20and%20shoulders%20continuation%20pattern&sc=0-47&cvid=28E760D2A92045DEAFDC09F86C591E09&ghsh=0&ghacc=0&first=1

It can be bullish.

Endeavour producing right shoulder in a reverse head and shoulder formation 9 sessions before report.

Dumped on what is low volume.

1849p close.

Spot price support around $2666 per ounce. Needs to touch back as was miles above it after the breakout move.

Fair enough.

BPat

Profit with this company is around half of what is generated above the AISC price and sell price. (Like a number of other miners).

Could be wrong, but I sense gold is putting in a top. 50 DMA support is below 2600. Gold weekly RSI above 80 and stochastics at 100 for ages now. We are overdo a pull back on the metal.

TX close price 1893p.

Uncrossed at 1905 UK as Toronto closes gap. The TX dominates the chart over London. My bet is that we open higher tomorrow as we did this morning.

Created a TX gap down to 1902. As of late they often get back filled.

Unless we missed news.

Https://www.knightpiesold.com/en/projects/15-30-mw-dugbe-hydroelectric-project/

Did this get built?

At the expect market price it is 7.5PE. For some reason it did not type in.

At $78.46 basket price which equals $60 Chinese basket price with lower NdPr content, the company makes $80M year. Capex is under $300M.

At bottom of the market price we have RBW valued at £75.6M and say a debt of construction build at £230M. Earning £60M pounds a year equates to a PE rating of 5 for a company with 16 years of profit plus follow on projects in other countries as a longer going concern. If rare earth prices proceed to meet future market demands and to operate sustainably then basket prices need to be double at present prices where hardly any companies are making profits. The PE rate for Rainbow becomes just 2.5PE rate on a functional plant. Selling clean gypsum is another income stream on top. The analyst valuation at 38p therefore is PE rate of 15 at the current crash price level at the expect market average price. We shall see the full economic study in due course but the analyst assessment does appear realistic for a 2027 target. 200% plus upside.

Also bought on strong support line.

This should go up as the clock goes back an hour and more electricity gets used.

Simplyme

Someone has to buy Dugbe and find some way of providing power to run the mine in that vicinity and getting all the approvals to do it. Converting resources into reserves costs money and involves capex investment. Depreciation of the asset and mine clear up after production has to be factored in. The problem here is that it has to get through several years of paying off all the debt and somehow replace mined out ounces. Hence the limitation on value. Every penny higher requires $80M gross profit. Some people just think they will make a billion quickly here and that is investing on hope.

The absolute highest value the share price can attain is 11p and this require maximum run rate of production for 5 years. It requires AISC to be under 1500 per ounce and the gold price to average over 2400. It is quite simple mathematics. It is not impossible but the share is a dog not a star investment. The biggest concern is whether the drilling results for the new mine were reliable or not. If the geotechnical data is poor then Hummingbird is in deep and real trouble.

The article incidentally now copied from original website and resubmitted is on ionic clays which we all know is a poor source for Rare earths.

Implies they will hit at least the lower end of production target.