Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Hi Pawgee. Do you have a link or a copy you could post? It seems to have vanished from the Cavendish website.
Starting 14.09
https://audioboom.com/posts/8477440-john-meyer-on-gold-copper-arc-atlantic-cornish-empire-sovereign
Great news from Nyobolt.
https://nyobolt.com/resources/news/nyobolt-cutting-edge-ultrafast-charging-battery-cells-production-certified/
Just as we were discussing smelting, look what popped up inthe Telegraph!
https://www.telegraph.co.uk/business/2024/03/10/british-battery-plants-cheap-power-china-dependence/
....British battery metal refiners and electric car gigafactories are being handed cheap power deals by the Government as part of a battle to cut the West’s dependence on China.
Companies will get the energy relief from next month with the aim being to boost domestic production of key minerals needed for wind turbines, electric cars and defence technologies, officials and executives say........
continues
CUSN could 1.sell the concentrate, or 2. pay a smelter to do the smelting then sell the tin or 3.it could set up a smelter itself.
3 would require more capital, and might result in smelting using high priced UK energy. However HMG might help if it wishes to provide the UK with a resilient source of tin. 2 seems quite likely if as pawgee points out there is a smelter available nearby. That would incur additional transport cost.
1. might not achieve a benefit for Western resilience, but could be redirected if there was no long term sales contract/offtake agreement, if the need arose.
It would be interesting to find out if the waste recyclers would be in a position to smelt the concentrate. I think I heard one was setting up in Plymouth.
Thira 2011 "Please forgive my ignorance, I may have missed something. Mines dewatered, material mined and brought to the surface And then what??? "
What will occur after that will be processing in a process plant on surface to produce concentrate (Permit in place). The process plant to be built if go-ahead given after economic assessment. See:- page 17 RHS image of
https://cornishmetals.com/site/assets/files/4930/cornish_metals_-_corp_ppt_february_2024.pdf
The sale/or further processing of concentrate i.e. smelting- into tin itself, is also to be decided.
You don't bother to refurbish shafts unless you are pretty certain they are going to be used!
Pawgee
I agree, it indicates a high degree of confidence that we will see a green light after the PEA. The clock is ticking, the tin price is rising and management are delivering.
Electric vehicles contain about 1 kg of tin. So Tata alone, might take around 600 tonnes of pure tin per annum in the future.
Then there is the lithium for the batteries perhaps from Cornish Lithium, in which CUSN has an interest. All shaping up nicely.
Oktane
Interesting post.
I am way out of my depth here and none of the following figures are realistic, but just used for logic's sake... But if the cash income net of costs was £75m pa and the investor -Trafigura- needed a 3 year payback to justify its investment, the outlay could be around £225m.
If the works to bring the field into use as storage cost say £25m, then the attributed value of the depleted field could be around £200m. That presumably would be shared between the partners mostly in favour of ANGS as the asset is fairly unique - as the largest onshore field in the UK? Does that not suggest a significant upside for a company with a market cap of £15m ?
Troutisout
Good points. Agreed earlier receipt of cash is better for several reasons, in particular one being SML's high annual cost of capital.
My point about payment from a major customer was based on the new customer not the old. I had Manganese Bronze's experience with London taxis in mind when I wrote it. ( Major customer didn't pay, forcing liquidation, at which point the major customer bought the business for a song.) Check out the nationality of the customer both for MB and for SML....
Even so, watch out for a rise in debtors on the balance sheet.
I just hope the significant customer, CAN pay, and DOES pay.
Agreed the outlook is good, especially re the recent tin price rise and ITA forecast increase in tin demand over the next few years.
When current drilling results are out and the new feasibility study is complete, a decision will be made as to whether to proceed. If a go-ahead decision is made at that point further funding will be needed to pay for the process plant and re-furb of shafts etc. A mix of plant hire, debt and maybe royalty finance may accompany an equity issue. The warrants, if exercised, would cover a significant proportion if not all of the latter. So there is clearly a motivation to get the share price back up to the warrant exercise price of 27p. Not that any additional motivation is needed.
After 3 w's put dot research-tree dot com then the rest.
https://*********************/media/cornish-metals-company-update-12-02-2024
Lovelyboy
Your link does seem to indicate that TUN expect some continuation in their activity. It also looks to be a bona fide posting by TUN. But I agree with your earlier sentiments, we should wait for an official announcement. Whether a permit is granted or not, investors will need to know what the Environment Agency's conditions are, and what they will cost to achieve. So even if there is a positive outcome to the application it will not be the end of the story. Fingers are still crossed.
Our comments have gone over at TUN.
All comment about a permit and the need for an RNS was just removed.
Thank you Mumbles.
It sounds as if the risk of not having a finance offer has diminished. The question now seems to be what will be the price for the deal.
The backdrop is encouraging. The Chinese have shown their hand with a recent massive restriction on exports of graphite. Clearly REs are in the frame for restrictions too, either because they need them for their own use or wish to make them a political bargaining chip. Whether that is important to ABSA is another matter.
It also looksasif the finance is going to be $120m debt, and the rest ($100m) mix of equity and royalty finance