Member Info for Valuation-it-is

CK Thanks - our posts crossed. As the tunneling would mostly be granite, presumably the start of the tunnel would be quite deep? Would the mine need to be de-watered first? I know you can go below water level now, but would the tunnel to CB need to start below that water level?

Is the crusher already in place ? I guess it would need fettling up if it is, does it have a power supply in place too?
The aggregate would presumably be killas not granite. If TUN can do it, CUSN should be able to. Where is the nearest siding for loading onto a train?
For that distance i.e. 1.7 km it might be worth hiring a boring machine?

Anyway, roll on the first Carn Brea drilling report.

With minutes to go to the Canadian opening, the London market has turned around sharply; 2p down has gone to almost 1p up. I guess all available shares in London have just headed over the pond again. Someone in Canada has done their homework and is buying consistently. Might be fun to guess the middle of the spread at the Canadian close today.
As per https://money.tmx.com/en/quote/CUSN

CK Re Carn Brea
Thinking of the practicalities, where would the waste from the tunneling go? A 1.7km tunnel would provide a lot of hard core perhaps for ..... Truro Northern by -pass? (Not likely to be in the right time frame...............)

CK 11.15
That, (Carnkie) has the potential to change to development plan and the order of financing. If Carnkie can provide ore first, then a processing plant might be set up at SC before SC is de-watered and before post-de-watering exploration takes place.
Do you know if any shafts at Carnkie are useable, or would a new start entirely be needed?

Thanks CK for your invaluable mining expertise and contribution. I see the investment case like this. The chances of CUSN moving towards being a major player with a market cap of hundreds of millions if not billions have just improved again. It is a pretty good bet that CUSN has billions of contained value in tin at South Crofty as was discussed on this board yesterday. We are edging towards the same being the case at UD. If UD keeps providing good results, then starting a mine there will become financially attractive. If CUSN then has two mines to share the cost, the processing plant will be more easily financed. All this is going on as the likely demand for copper tin etc is rising with few places that can bring extra supply on stream being available. SC is one of the few that could do that in a 4 year time frame albeit challenging to do so. On top of the obvious attractions of UD and SC CUSN has 15000 hectares (over 30,000 acres) of mining rights. It is becoming clear that past exploration has mostly not gone deep - possibly because the tech was not available and the cost was prohibitive at the time. CUSN's exploration is showing (today's included) that there is a lot of un-mined - undiscovered ore at deeper levels. So there is great potential for further discoveries. Then - CUSN also has an exposure to Lithium through Cornish Lithium, a separate company, currently private. An annual fee $100,000 from 18.1.22 , royalties on lithium and other metals in brine and heat from depth will all give a nice income to CUSN when CL starts production. Plus CUSN has a small shareholding in CL.In short, CUSN provides the possibility of huge upside to the share price from here in a number of ways. The trends in metal usage, prices, and stocks appear to be with us, our government is keen to level up, to provide supply chain resilience and support us.Permits for UD are in place, and the local population is about as supportive as anywhere on the planet. All of this is in a "safe" politically stable jurisdiction. I think we are invested in an absolute gem.Further triggers to share price out-performance are likely:-1. More drill results2. Takeover activity in the sector3. A re-working of the PEA on South Crofty, likely to give a very big lift to the NPV4. Funding announcements. I think that RW is probably trying to arrange both dewatering /& feasibilty study finance of £25m, needed in the near term, at the same time as the project finance, for re-opening South Crofty and building a process plant perhaps £80m. It would not be sensible to start dewatering if the finance for the next stage was not in place. To find the cheapest finance, one has to make the best possible case, i.e. have risks minimised, revenues max'ed and as certain as possible etc. The drilling at UD does that. 5. Further increase in tin and copper prices. So share price? Further to go.

https://www.telegraph.co.uk/business/2021/12/06/chinese-takeover-lithium-miner-must-stopped-ministers-told/

Copper, Tin Lithium, CUSN has got exposure to them.

Panda1
Not only will SML be eyed up for its assets, but as CUSN becomes more and more likely to go ahead with re-starting South Crofty, the more likely a process plant for that will become. So SML will be able to transport product to SC for processing. That make a go ahead at Redmoor more likely too. And that is great news for the SML share price.
Anyone have the figures for likely contained tin/ Tungsten at Redmoor and its value?

Pawgee 16.27 " A shed load of tin"

Take a look at RHS of page 17 of :-
https://www.cornishmetals.com/site/assets/files/4930/202110-cusn_corp__pres__web.pdf

The potential is 17-21 million tonnes of resource at say 1.6% (perhaps more) =272k tonnes - 336k tonnes of contained tin.
At $40,000 per tonne= $10.880bn - $13.44bn Allowing for a lot of cost that is still many multiple of the value of the market cap. And that is just SC...

Dreamcatcher
It often happens when the spread moves. Your price is compared to the middle of the spread. If it is above the middle it is allocated a buy rating and colour, if it is below, then a sell. If the spread moves around the time you buy or sell it is often the case the wrong description is given.
There may be manipulation of the spread if a big deal is going through , to disguise what has happened to the MM's book, but not likely for 8000 shares.

The short position shown on https://ceo.ca/cusn until recently as 2.44m shares is now showing as only 452k. The shorter (s) has managed to close their position by nearly 2m shares. Just 0.452m to go! A painful experience for someone.
Meanwhile in Canada the share price is back up to 40 cents with turnover already at 726k
source https://money.tmx.com/en/quote/CUSN
Hopefully there will be some more drill results from CUSN soon.

H& P have just published their initiation of coverage report and have a target price of £1.44p

Unless an offer is made to the public without any restrictions it is not legal for it to go into an ISA.
If your money for the investment is within an ISA what can be done, is to take the cash out of the ISA, buy the shares in the IPO , then when dealings start do a Bed and ISA (i.e. imultaneously sell the shares , put the cash raised back into the ISA, and buy the shares back in the ISA )
However if the price when you sell is above the price of the IPO you will have a capital gain on which you may have to pay CGT. Dealing right at the open is advisable therefore. You also should know that you can only put the cash back into the ISA in the same tax year as that when taken out. So only do this before 5/4/22 and best at the open on the day when dealings start.
Your broker may have their own rules on top of this legal framework. You will probably find that there is a very small difference between the sell and the buy price and some dealing costs.

Pawgee Agreed. At least CUSN have the option to participate or be diluted - so CUSN can decide. I think that Trelavour will probably go ahead first (but don't hold me to it) - and CUSN will not be involved in that as it is on Lord Falmouth's mineral rights not CUSNs.
At United Downs, CUSN will have to decide, but in that case I think the capex may be minimal for the DLE plant, and about £200k a drill hole. So even 25% of that (assuming no project finance) won't be a lot. What would upset the apple cart is if CL decided to go ahead with the deep drilling i.e. 5km deep holes. That depth has the richest lithium in brine but the cost of drilling is around £20m a hole. If CUSN had to contribute £5m a go, that would stretch current resources. My guess is there will be a lot of project finance so CUSNs contribution from its own resources would be reduced. Still an issue though.
Agree the £9m from Techmet gives CL the firepower to move forward quickly with pilot plant testing and the scoping study.
Shares - I expect about 560,000 will be issued on 18/1/22 so our numbers are in broad agreement.

Pawgee 16.21 "as CUSN will need to contribute financially" (to CL)
In order to continue exploring on CUSN mineral rights areas, CL will have to decide by 18/1/22 whether to pay $100,000 in cash or in its own shares to CUSN. CL has just issued shares to TechMet so I guess it will be the value attributed to the shares in that issue which will be used for valuation purposes. i.e. 13.5p a share. If CL pays in shares I estimate that CUSN will then own a little under 6.6m CL shares. worth approaching £900k. This will represent around 1% of CL.
As regards CUSN's interest in Cl's projects and funding them, the Listing document page 259 para 15 on states:-
"CML (CUSN) will have a free carried interest of 25 per cent. in the first project to have a bankable feasibility study completed on it and a 10 per cent. free carried interest in each subsequent project that has a bankable feasibility study completed on it (the carries ceasing after the completion of the bankable feasibility studies)"
Although not stated in the p259 text within the Listing document, the IPO presentation pack made clear these free carried interests were not on ANY CL project, but only on projects within the CUSN mineral rights area. Trelavour is as CK has stated, outwith the CUSN area, so CUSN would not be expected to fund development there.
My view is therefore that CL will probably go ahead with Trelavour quickly as it derives 100% of the benefit, whereas with CUSN project no 1 (eg UD) it will get 75%. With much ready-mined material on site at Trelavour the extraction cost should be low too, processing costs perhaps not so low.
At UD, capex costs may be low, so it may follow closely behind, but not require much cash from CUSN.
Therefore for the above 2 reasons, I expect the call for cash from CUSN will be very limited. But worth checking with the company.

I hope we can all get over the upset referred to below.
MO, there is absolutely no reason for you not to post on this board. CUSN have various exposures to CL so discussion of CL and its prospects seems perfectly valid. You have a lot of good info and thoughts to contribute and I for one would be disappointed if you stopped.
If anyone feels they do not like or want anything that is posted then filtering is the way forward.
Criticism of a post or a poster is simply a waste of everybody's time and spoils the board for all.
I use filters quite a lot. As soon as I realise that someone has nothing to contribute and is disruptive on it goes and it stays on.
The question of smelting came up in the ITA conference yesterday. I got the impression from Richard Williams response, that the possibility was being considered. It would seem to tick a number of boxes for HMG - Green credentials - avoiding lugging concentrate around the world and back, leveling up - providing jobs in the UK and Resilience - making the UK supply chain more reliable. What would be great is to build processing plants to cope with the Caesium and Rubidium that CL have in their resource. Huge value to be added.

=23.5p

Fira - It is worth taking a look at this................ P 8 and P23 of
https://cornishmetals.com/site/assets/files/4930/202110-cusn_corp__pres__web.pdf

This is only part of the reason why MO and fellow posters are getting v excited.

MO 20.18
This is the process that CL have been showing to people at their pilot plant at United Downs. It seems to be a disruptive technology which will provide the world with a huge increase in production of Lithium and other metals. Who will "own" the technology is not clear (to me) as several groups are progressing with its development simultaneously. But it is clear that those owners of mineral rights acreages which could implement the technology on their sites will benefit.
As far as DLE from Brine is concerned it looks as if CL will be a winner because it has negotiated the right to extract from CUSN's area. It is not described as an exclusive right in the documentation, but opening up exploration to a second explorer for the same purpose would seem problematical. Other winners are likely to be the Crown estate, the Tregothnan Estate and several others.

MO 12.14 Great post, good info to have. I hope they achieve the same extraction rate for the rare metals as they have for Lithium. The valuation of some of them (albeit in the hard rock project not as in brines here) appears to leave lithium as a low value by-product!