Member Info for Tungstenman

I see where you are coming from but that would add another 2bn shares based on 5/6p. Using the same multiple of 8 on £350m profit that would deliver c46p per share opposed to £1+ per share. It’s good to chew the fat and it’s good to hear other views.

That doesn’t work unless the rights issue is close to 15p.

De merger / new ipo is the route as the appetite for a £500m SML /Tungsten listing would be huge.

If the board can implement this plan then there would be no reason to raise ever again and SML would hold 80% of a company delivering £350m profit pa.

Stage 1 gets us to 15p immediately.

Exploration to £350m PBT would get SML close to £1 using a multiple of 8

I have read the Zeus note again this afternoon and it’s blatantly obvious the current share price/market cap is just plain wrong. GMET valuation went through £600m on Friday and Tungsten West is over £500m now too.

I think it’s time for the Directors to consider emerging Redmoor and list as a separate company on the main market. The business could easily command a £500m valuation. The company could comfortably sell 20% in the new IPO, put £100m in the bank and that’s the funding in place to build the nine to bring out the £5bn of cash. I believe the demand would be very strong from institutional investors at the £500m level based on GMET and TUN. Not sure what the free float rules are but SML would be holding c80% of a £500m co that is also fully funded to build the mine up ahead.

Post IPO the SML balance sheet would look like this -

1. 80% of Redmoor - value - £400m on day 1

2. 19.8% of Leigh Creek - value - £5m

3. 100% of Cobre - Value - £10m (£1.2m profit x8)

4. Current SML cash £10m

Total value after Redmoor IPO - £425m

Number of SML shares in issue - 2.8bn

Value per share would be - 15.1p

Now that 15p is broadly in line with Zeus fair value. However, by doing the IPO we not only reach fair value sooner , we also secure the funds to build out the mind and deliver the £350m pa profit. This route avoids shareholders being diluted by discounted placings, eliminated the need for debt and unlocks the £350m profit pa.

I know the board will be considering many options but this is my fav for all shareholders including the Board. It the current board in situ and avoids any real dilution due to the merger ipo value.

Just a thought based on the inordinate cashflows this co is about to deliver .

TM

Just a quick follow up - this is the impact if $2000 tungsten price is used which is 36% below the current spot price.

This 43p share price using $2000 Tungsten price is included in yesterday’s Zeus note.

at $2,000/mtu the project generates an NPV10 of $4,673m (43p of share value risked at 30%).

Great to see where we are now and more than justified. I did ha a personal fair value target of 13p but Zeus has spanked me with 14.9p. However, having read the not 4 times now I see this north of 20p. There’s about $3bn of cashflows in Zeus forecast and that’s using $850 tungsten price. Tungsten is currently $3200 so in theory the cashflows are closer to $12bn. I think the biggest comfort for me as a shareholder was the fact this project works at $400 tungsten. So tungsten can fall 97% from today’s spot price and the project still throws off cash.

Don’t forget Leigh Creek and never forget Cobre which throws off cash for the group. Company probably has about $12m cash and is vulnerable to a takeover looking at the Zeus note and numbers.

Any thoughts?

18p try 43p - LOL - extract from Zeus

at $2,000/mtu the project generates an NPV10 of $4,673m (43p of share value risked at 30%).

Smell the Coffey

Spot on Mac. Sitting in the house on welfare benefits commenting on every single move trying to impress. Everyone can see through tungsteninvestor a d his cronies

Worthwhile reporting to the platform

Agree bluegrass - dreadful desperate behaviour but that’s what platforms like this attract. Always 1% spoil the benefits and none of them offer insight or a real understanding of our asset. SAD

These liars are not investors. Born crooks

Tungsten investors - read his posts. He’s a seller then he’s a buyer. Same pattern all the time. Bb hoppa the exact same. Probably all connected. Sooner these new Aim regulations close down platforms like this the better.

SP Angel note will be next - Simon Beardsmore their mining analyst is the best in the business IMO. Looking forward to reading his note on sml.

Yesterday’s news is still sinking in TBH. The market can’t hold the price down here for too much longer .

Leigh Creek disposal is due by 31/5 or sooner. Let’s see if our amazing management team can get that over the line.

What an asset Redmoor is - wow

Hats off to this management team - the value they have created in such a short period has been astonishing. As we read through today’s Zeus note the value that’s still to be reflected in the share price is massive.

Thank you to all the Board. A once in a generation investment but DYOR.

I would encourage holders to read today’s broker note. It’s detailed, very narrative and very balanced.

Looks like the MM has sold £302,000 at 6.1. Held the price down and covered himself at a lower price pocketing the difference. Has to be Coffey - too big for retail

Probably being held down while Coffey fills his boots - LOL

Welcome Bellers. Well done on GGP -

I like that section too Davidous. They saying TUN and SML undervalued but GMET overvalued. I bet GMET holders will be considering a switch into SML before lift off.

It’s incredible isn’t it Slurm. I like the paragraph where they value at 43p using a notional $2000 for Tungsten. That’s actually fair as tungsten is currently $3200.

Smell the Coffey