Member Info for Tornadotony

We have a clear timetable. It has moved out again by six months, but probably aligns with events in the global market. The risks inherent in the project have been made very clear along with actions thus far to mitigate them. I really do hope the flow sheet at the back end plant in USA is finalised in Q2. Hopefully the market responds well to the RNS.

Https://www.mining-technology.com/features/autonomous_vehicles_safeai/?cf-view

String of initiatives now getting underway within Fresnillo. Should also improve safety and productivity. Hopefully all the on-going investment and improvements will eventually work through. Management were on the right track in the annual report.

An error in my earlier analysis. Exploration went up from $182M last year to $190M this year, as I misread the figures. Capex overall down $40M in this particular year as last year was really heavy investment. Current forecast is revenues to increase 18% earnings in 2024 over 2023 as an average from the analyst coverage. Efficiency gains should recover general inflation rise in year.

I am not sure if other folks are having the same problem, but the submit button does not submit.

The project should be funded as to provide a supply chain that is not Chinese influenced. China is screwing up nickel and rare earth miners. High time Western Government stopped projects like this going to the wall.

High time the Western politicians, the banks and industry users of rare earths all agreed that high tariffs should go on all Chinese rare earth exports and magnets etcetera and seriously support an independent supply chain away from China. Those countries using Chinese imported rare earth material to should have tariffs imposed on any product they export to countries supporting a western supply chain security model. Unfortunately to many people take backhanders from the Chinese Government as reported on GB news this evening and that includes certain people in our own parliament.

He was moved on to the cyber attack unit.

Lack of funding for new mining projects could reduce the availability of rare earth metals and minerals by 20-50%, creating shortages that impacts the production of batteries, McKinsey warns. Rising interest rates and less available finance made mining companies cut investment, with sector spending falling to around $40 billion in 2022, despite soaring demand.

Fresnillo closed in USA at the equivalent price of 465p UK.

A rinse cycle (price depression) often happens after the FED pushes up gold and the miners with its talking known as the washing cycle. The reason for it is that gaps in the gold charts arise with Asia opening as well as London. USA starts the wash cycle, the Asian market drenches the gold parade and London gives it that last kicking to get all the gaps closed. Gaps in the gold charts always and I mean always get closed. Occasionally a gold market will dive down in seconds to go back up again just to record a low and close a gap. If a buy gets executed in that time frame it is that person's lucky day.

Fresnillo drop was all about delivering a low level of profit and dividend. Fresnillo has up and down cycles. The up cycles have a level of profit and dividend plus 4 times greater at a nadir point. 2023 performance was worse than 2019. 2024 is a recovery year and i believe we shall see an SP plus £2 from here. It may take months and a couple of good quarter reports showing AISCs getting lower from 2023 levels.

Gold and silver have now closed gaps created by FED commentary at least with Asian market and it looks the same as London opens. We shall soon see if the rinse is now complete.

The Capex was higher earlier as they were acquiring own equipment to replace contractor suppliers. The process of doing all that is probably moving to just sustainable capex as that process gets fully completed.

457 close USA side. ( pound drops in value) USD gains a little against mx peso.

453.5p taking 1.27 for USA/pound pairing.

Https://www.banxico.org.mx/publications-and-press/announcements-of-monetary-policy-decisions/%7B37E09D62-344B-CB2E-178A-3DFD89B45FAB%7D.pdf

Little impact on currency pairing thus far.

Fresnillo will be selling into a gold market that has given 6.1% higher prices over the mean from 2023. For silver they are rapidly catching up to the average over 2023 and around 0.7% down 23.378 2024 futures average against 23.535 for all of last year. There is a 2024 profit recovery on going with Fresnillo. The average share price since 1 August up until today is 533p. At the current silver prices we should be heading towards that share price.

When Fres prices move up it is usually in blocks of 50p.

There is a deeper problem. This contractor works for Barrick, Endeavour and other note worthy miners and appears to work okay, but none are in Guinea.

Hummingbird are new to Guinea and so is their contractor. Guinea has a long history of issues with mining companies. The productivity of mining companies in Guinea is far worse than other African countries and was identified in an IMF report. The world bank has poured in funds to try and help the Guinea mining sector on ESG. So why are things not working out?

In the past, Guinea mining companies were outplayed by China and other importing countries through commodity price rigging in conjunction with large mining companies in the global market. It led to a lot of people in Guinea losing mining jobs and left environmental mess where mines were operating as they financially collapsed in debt.

A number of mining companies damaged Guinea agriculture and certainly contaminated water supplies that led to riots in some parts of the country. There is huge distrust of the mining sector by rural communities. Local people are often promised some compensation for a local mine and then got nothing. Worse still there was a history of corruption where mining companies acquired land and previous owners received no compensation. There is plenty of evidence that working in the mining sector is not the first choice of Guinea people who have seen precious little benefit. This adds hugely to recruitment difficulties and retaining workforces in mining in Guinea. I suspect both the contractor and hummingbird are not dealing with some real problems. To set targets and they fail because the contractor is having real problems in Guinea, whether it is getting equipment through the port to the mine or keeping a work force and having good community relations is proving difficult to do.

Overall both sides are pointing fingers at each other and this is demonstrating that someone or something like the country of Guinea is breaking their relationship. Hopefully they will solve things, but Betts has a habit of taking short cuts and they always come back to bite him and his investors. The problem with Guinea is that you can not do short cuts. A senior manager has to be out there most of the time and communicated effectively. Tony

USA FED are tolerating more inflation for higher growth. Hence silver and gold move higher. Peso has gone back to where it was on Tuesday with USD. Mexico central bank needs to cut rates tomorrow. USA growth is now projected to be 1% higher in 2025 than current forecast for Mexico economy.

Https://uk.finance.yahoo.com/news/corica-mining-services-corica-suspension-090400206.html

Non-payment of completed work the company asked and presumably directed them to do. The Hummingbird RNS now appears misleading. This problem was going on for months. I expect the 42% holder is rubbing their hands with glee as they are probably not a white knight. The bank will have company governance issues to look into. Publican you were smart to get out this morning.