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I'm not sure about 'experience' needed to short but you definitely need balls! Munch, you must be £1000pp short and currently 2 points to breakeven? Then you're looking for 3 points lower? Your risk vs reward is not favourable and you're banking on a discounted raise when we know that the company isn't desperate and we've never been big on discounted raises (last one was only 7%)! I hope IG gave you guaranteed stops but I doubt they did as they only usually guarantee up to £20pp. If you didn't get it online, suggest you call up and speak to someone
Page 3, page 8 and page 10
Thanks Farq, that's a great read.
Let's be realistic with these sp predictions - this is our in-house broker so they are going to be bullish. Also, projects rarely achieve the NPV. Saying that, the note details all of the calculations which are similar to my own so I'm happy that they haven't embellished anything.
Also,the note focuses on Ewoyaa and predicts a share price of 96p solely based on Ewoyaa. It mentions upside but hasn't really grasped that Ewoyaa is a tiny dot in our Ghanaian exploration. Egyasimanku Hill is the big prize here with more Ewoyaas scattered around the other licences (I estimate that there could be another 4 or 5)
Only £19m attributed to CDI which is fair for our exploration stage. However, whereas Ewoyaa was given a future value, no future value attributed to anything in CDI. I appreciate that this is difficult for exploration.
Then no value whatsoever attributed to Chad.
Overall its pretty conservative and it focuses on only what can be calculated, no speculation at all. Shows what can be achieved with just a tiny part of our lithium portfolio.
Agree swest, having a valuation is a key milestone. I'd also like to see some drilling at Egyasimanku Hill and maybe Apam before we sell the farm (or maybe some sort of milestone payments based on resource level once the buyer is exploring).
From what I've seen and heard so far, Zaranou is also looking pretty tasty. Due diligence is currently in the pipeline so that's another possible multi-million ounce resource and its just down the road from our other licences. Let's see what comes back from the lab.
That's a good point earthling - CEO, friends and family put in £1.5m recently at 20p. How many AIM explorers can boast about that??
Anyone gets 5 minutes, take a look at the latest company presentation, March 2019, slide 17. Zoom into the graphic of the Mankwazdi licence, top right, pink writing and arrow pointing towards two small pink hatched areas on the side of Egyasimanku Hill. This pink areas represent 1.48Mt @ 1.67%
Now bear in mind that the drill stopped at a depth of 30m WITHIN mineralisation. Also, in 1962, the Ghana Geological Society couldn't get the drill rig up the hill so they stopped less than half way up!
Recent photos also show IronRidge and Assore meeting on Egyasimanku Hill. Previous site visits have also focused on the Hill. I wonder why?
Interesting times ahead and my faith in the board remains strong. Market cap currently does not reflect on Ghana, Chad and Ivory Coast imo. Just a waiting game.
Got no problem with you shorting Munchbox but your reasons are a tad flimsy and it's a bit strange watching you ramping then suddenly change your position.
Why would you think that VM has lost control? What have you seen over the past few weeks that would lead you to believe this?
SM, I haven't seen him post on this share since 2009 lol
Thanks Weetsie, will make sure it's in my next ramp, I mean post :)
Literally pmsl. I always thought that this board was generally full of good discussion. I've read back through recent days and it's clear that this board is for like minded and long term investors. Not a 'boom', 'to da moon' or sky high sp prediction in sight. Actually, I do believe that anyone who attempted to exaggerate any upside would be reigned in by other posters. I'd be really interested to hear which posters were being referenced and which posts were considered to be mindless ramping. Let's discuss.
On another completely unrelated note, 900p next week, going to da moon, short squeeze coming, MMs are desperate for your shares, bigger than Apple, boom boom shake the room etc etc (does that sh*t actually work?? Lol)
Our time will come. Ghana has incredible potential and I'm not talking about Ewoyaa or Abonku - this is just the start. Egyasimanku Hill is a small mountain made of lithium. There are at least another 50 visible pegmatites within our licenses, some are much bigger than Ewoyaa. And that's just what's at surface. You have to imagine the iceberg effect where the majority of pegmatite is below the surface. How deep are they? Are they all average? Or could there be a monster lurking at depth?
Ewoyaa and Abonku together will deliver a respectable resource greater than 15Mt with grades greater than 1% imo (yesterday's RNS should actually put us closer to 1.25% imo). That's a lithium mine. Now, Ewoyaa keeps getting bigger but how much bigger? Then add in the other 15 pegmatites that have been mapped in the same licence as Ewoyaa. Some are bigger (at surface) than Ewoyaa. Now you are potentially looking at one of the world's biggest hard rock lithium resources. It only takes 50Mt at 1% to get there.
What does the market need in order to rerate IronRidge? All of the above is speculation and the market will only react temporarily to speculation. We don't yet have a resource but we know its coming. We haven't drilled any other pegmatites but we know they are there.
If we eventually hit a resource that's comparable to Pilgangoora or Earl Grey or Greenbushes......can the market still ignore that we would be many times undervalued compared to our peers? No. Its a waiting game for me.
GL all
I also bought heavily around 35p as I believed that raise would provide some support. And I continue to add as funds allow (I rarely announce my buys though) just building a decent position.
Assmang is busy with two projects in its manganese business to grow ore production to five-million tonnes a year, including a R6.7bn expansion of its Black Rock mine. In 2018, the manganese division supplied 3.7-million tonnes of ore.
Assore’s wholly owned Dwarsrivier chrome ore business sold 757,000 tonnes in the interim period, a 5% drop. This was because of community unrest near the mine in Mpumalanga as well as congestion at Maputo harbour in Mozambique.
Assore bumped up its stake in AIM-traded IronRidge Resources to 31.3% during the past six months from nearly 29% at a cost of R56m.
IronRidge is exploring for economically viable deposits of lithium and gold in Ghana, Chad and Ivory Coast.
COMPANIES / MINING
Assore’s cash war chest grows despite handsome dividendAssore reported a R10/share dividend for the six months to end-December and in its 2018 year, it paid out a record R22/share in total dividends
26 FEBRUARY 2019 - 10:49 ALLAN SECCOMBE
Assore, a tightly held resources company, continued to build its cash pile after a strong interim period in which its iron ore and manganese interests benefited from higher prices.
Assore reported a R10/share dividend for the six months to end-December, in line with its interim dividend from the year before. In its 2018 financial year, it paid out a record R22/share in total dividends.
Interim post-tax profit of R2.93bn was higher than the previous year’s R2.48bn, as revenue grew to R3.95bn from R3.84bn.
Cash of R8.75bn on its balance sheet by the end of December left Assore in a net cash position of R7.65bn.
Assore has a 50% stake in Assmang, which it shares with African Rainbow Minerals (ARM).
The Assore results give an early look at one of the main pillars of ARM’s business portfolio, which includes platinum group metals, nickel and coal.
Assmang has iron ore and manganese mines in the Northern Cape as well as manganese alloy smelters. It reported headline earnings for R4.29bn for the six-month period, up from R3.47bn a year earlier.
Assmang contributed R2.14bn towards Assore’s headline earnings of R2.9bn, which were 20% higher than a year ago.
“During the first six months, we experienced an improved price basket and a weaker exchange rate, which were countered by some difficulties with inland logistics on certain product lines,” CEO Charles Walters said.
The dividend payment was kept steady in line with last year’s 60% increase in return to shareholders as the company continued to build its cash reserves to “fund our future growth ambitions”, he said.
Assore owns the Dwarsrivier chrome mines and is in the process of selling the Machadodorp smelting complex, a transaction it expects to wrap up in the next few days.
Assmang’s iron ore sales were 4% lower at 8.75-million tonnes in the interim period because of logistical constraints both on the railway line and at the Saldanha harbour.
While manganese sales from Assmang were 3% higher at 1.6-million tonnes, exports were constrained by the same logistical challenges as the iron ore business.
“During the current period, demand and prices for manganese ore remained elevated, driven by China's increased reliance on imported ore,” Assore said, noting there remained a supply deficit in the global manganese ore market.
In the manganese alloy market, however, there was an oversupply of the ingredient used in steel manufacturing.
“This, together with the sustained elevated prices of manganese ore (as a key input cost to alloy production), has led to some production cut backs by the manganese alloy industry,” Assore said.
Continued....
What we know....
We've had teams back in Chad for a few months now. We know that they've been at Kalaka, very likely trenching, pitting or at a minimum collecting soil samples and mapping the area.
We also know that teams have been at Dorothe and we know that SRK have been modelling for the drill plan. We also know that a team has been at the new target SW of Dorothe (copper anomoly) with 'exploration equipment'.
Very likely that Tekton have also been looking at the Guerere target and wouldn't surprise me to hear that they've also done some basic exploration and mapping at Nabagay.
We know that IronRidge don't chuck out RNSs every time a sample is taken so just because we don't get an official release, it does not mean that there is no progress.
I await the next Chad update and I'm expecting some movement. Dorothe is more than just the icing on the cake, it's the cake, the jam and the cherry on top. I'm also looking forward to finding out if our copper discovery is worth pursuing - as we all know copper and gold geology goes hand in hand. If it looks good, it's a big bonus.
It's still perfectly feasible that Kalaka and Guerere are repeats of Dorothe. I guess we'll find out soon enough!
GLA and DYOR
I may have put 2 and 2 together and made 5 but here's my take...
The last EGM was called for agreement to buy Tekton.
There is enough cash to (at least) last the year so absolutely zero reason to do this now UNLESS there's a deal in the pipeline (similar to when we bought Tekton).
We are looking at a huge piece of exploration work in Chad.
There are several options where we don't have to pay cash for this work:
1. Farm out
2. JV
3. Pay for it in shares
Everything is in the RNS, if people put 2 and 2 together, you can work out what is happening ;)
All good imo
Agree Bozi, spot on imo. I suspect that we are going to see some deals announced soon. We don't need cash so this isn't for a fund raise. Great opportunity to collect whilst sellers panic imo.
https://twitter.com/Toro_AIM/status/1097071811907473408?s=19