Member Info for Tungstenman

What an Asset - holy macaroni.

London - the chairman has 100m shares - he will avoid dilution at all costs.

Because this management has kept its powder dry it has optionally on mine funding.

1. Government grant (new critical mineral fund)

2. Offtake partner (Glencore etc) - provide mine funding in exchange for exclusivity on our tungsten.

3. Bank debt leveraging the £400m asset

Or a combination of all 3 .

The grades that are coming out of the ground only enhance the possibilities.

Why would we need to dilute London? We have a £400m asset and a £1.5m income stream. We could borrow £2m for any future drilling . Don’t forget Leigh Creek disposal which is worth $9m. Not only are we the largest tungsten play in Europe we have one of the best balance sheets too. Also a £1.5m cash free inflow annually.

Remember our management team has many millions invested in shares here. They are on the winning horse . Tun shareholders will be wiped out post the CLN conversion

How on earth would sml get into that kind of mess. We generate 1.5m free cash pa. This management team won’t be as dull as Tun management. This is the horse to back now and that Tun news makes us the only tungsten game in town. We might be able to purchase the Tun processing plant from the receiver.

Just read the TUN RNS - good god. I think today’s buying here at SML are TUN investors switching horse. And I don’t blame them

I feel we need some fresh news on both Cobre and Leigh Creek. Management must have an idea of the likely sales turnout for Cobre for the year to Dec 2025 with only 3 weeks to YE. Getting LC over the line would be superb as its on our Balance sheet at Zero .

Decent sized seller around today - maybe a knowledgable one like RAB !!!!!.

20p is fair value for Cornwall. The market has a bit of catching up to do.

I think what’s even more laughable is the group asset value. Interim balance sheet stated Assets valued at $9.7m. We are selling LC for that amount not to mention cash at bank on hand must b c£1m . This means Redmoor and Cobre are valued at Zero. Lots of upside coming.

We dont need the MRE to write up the value of our assets but that event should be a defining opportunity to do such. However, if I was the CEO speaking to partners, off takers , government, UHNWI and institutions I would want to conduct those conversations with a £400m asset on the BS.

Based on what we have seen this far then £400m is no longer a pipe dream. Our Cornwall Asset has been a LATENT ASSETT for over 10 years now so it will take time for investors to get over the Rubicon on the metrics. The change in value of this latent asset from £5m to £300m is a big step change but the drill results are proving this value out. The market has gone some way to try and find middle ground with a valuation of £30m from £5m but its £270m shy IMO. It's a bit like having a piece of land in London that has been rezoned for Housing after 10 years !!!. It is very important that management work with the auditors to get the correct value onto our balance sheet. That gives management confidence when negotiating with potential partners, government , off takers or ultimately a purchaser. I would certainly want a fair value for Cornwall on the BS when the accounts are being reviewed on 31/12/25.

Leigh Creek disposal would add significant further value to our balance sheet as the asset is valued at Zero. Its a bit of a side show in reality but the cash and carry will be very well received by shareholders. Just while we are on the balance sheet the Redmoor asset is valued at c£5m on the latest set of accounts. Is there an argument for this to now be revalued towards £300m based on drilling results. It would also offer management flexibility to neg a bank facility of they so desired. Welcome some thoughts on writing up the value of the Cornwall asset as we approach year end. There is a lot of housekeeping that could be done to put the group on a very strong footing but they just seem focussed on pumping out the drill results for now.

Stick2Facts. That update was superseded by this update. Cuprum is the new vehicle that will acquire our Leigh Creek asset.

https://www.cuprum-metals.com

Restarting Leigh Creek Copper Mine

The Leigh Creek Copper Mine (LCCM) is a brownfield mining operation located in the North Flinders Ranges of South Australia, approximately 500 km north of Adelaide. The project focuses on restarting copper production from existing oxide deposits, including Paltridge North, Lynda, and Lorna Doone, which collectively hold a JORC-compliant resource. Utilizing established infrastructure such as the Mountain of Light processing plant, sealed roads, and airport access, the initiative employs heap leach and Kennecott cone processing methods to facilitate a resumption of operations .

The LCCM project emphasizes a staged approach to development, beginning with low-cost oxide copper extraction to generate early cash flows, while planning for potential expansion into deeper sulphide resources.

Leigh Creek Copper Mine Transaction Update

Further to grant of an exclusive call option to Axis Mining & Minerals Pty Ltd to acquire 100% of the Leigh Creek Copper Mine ("LCCM") as announced on 24 April 2025 ("Call Option"), Strategic Minerals announces that the parties have agreed, at the request of the Call Option holder, to novate the Call Option to South Pacific Mineral Investments Pty Ltd trading as Cuprum Metals ("Cuprum").

Subsequently, Cuprum (now, the "Purchaser") is bound by and must comply with all the provisions of the Call Option.

As previously announced, under the terms of the Call Option, which is exercisable for a period of six months (or such longer period as may be agreed by the parties), the Purchaser may elect to acquire 100% of LCCM for an initial payment to Strategic Minerals of A$1.9 million in cash. The Purchaser anticipates completing a listing on the Australian Securities Exchange upon which it will, if the Call Option is exercised, issue shares to Strategic Minerals equivalent to 19.9% of the listed vehicle up to a maximum value limit of A$3 million*. The Purchaser will also pay an earn-out to Strategic Minerals equivalent to A$4 million ("Earn-Out Consideration") to be paid on a half yearly basis from the commencement of commercial production from LCCM with each half yearly payment to be the equivalent of 20% of net free cash flows from the prior period.

*In the event of the share issuance to Strategic Minerals being less than A$3 million as a result of the 19.9% limit, the Earn-Out Consideration shall be adjusted to a higher level to reflect the difference in value from the A$3 million maximum limit.

Something afoot here - massive accumulation on a Friday afternoon !!!!!!!!!!!!!!!

Cant believe I am saying this , but with markets in AI looking toppy and various political issues unfolding, SML must be one of the best Hedges on the LSE

Good article Prop - this is exactly how the critical mineral strategy is going to play out globally. Governments and Large miners positioning themselves to benefit by taking stakes. SML will be in a very fortunate position v soon where it will be able to select its partner from a beauty parade. How things have changed - previous management spent 10 years looking for a partner - LOL . SML is a once in a generation investment opportunity IMO

Long term holders know the correct valuation and it isn’t 1.2p. We will see this move towards a £300m market cap in line with similar listed tungsten plays. Those tungsten plays like GMET would die for the grades we have. I’m sticking with my 13x upside .

Cloud bay - I should have highlighted the % metric for completeness. 25% x £1bn is £250m , we know Cobre is worth at least £30m and our Leigh creek asset is worth $9m . In total that’s c£300m or 13p which is were my 13x upside comes from. However Cornwall could be worth significantly more to the right purchaser. Watch this space