Member Info for Valuation-it-is

Fira
I think the dilution for de-watering may be much smaller than some anticipate. Thereafter, it may be that project finance, and off take agreements rather than equity issues may be possible. As a comparator or indicator as to what is possible, it is very encouraging to see Tungsten West has found finance at an attractive rate given Hemerdon's track record.

treblejohn67 Every little helps!
Once C Lithium floats in 2022 (probably Q1) it will be easy for CUSN to realise its investment if it wishes. By then, hopefully CUSN will have received more shares in CL and all being well the flotation price will have been set higher than that of the last CL fundraise. So perhaps it will be a $2m asset at that stage.
What this does is give CUSN some flexibility over funding. CUSN raised more than it required at the IPO so is well funded for all its exploration work and feasibility study. It does not need the cash for its current requirements. However de-watering South Crofty etc. will require a raise of £25m. Osisko, Cornwall Council, etc are likely to be supportive, so the amount to be found is not large, and could be reduced if necessary by realising the investment in CL.
Given the tin price $35,315/tonne at the time of writing, the case for re-starting mining at South Crofty is compelling, and I suspect that a further fund raise by CUSN will be popular amongst small investors, institutions and Government.
If I remember correctly the PEA has a central assumption of a tin price of $10/lb ($22,400/ ton) so we are well ahead of that making it easier to fund.

Is any tin exploration going on at Redmoor?

In terms of new mines being brought on stream, South Crofty must be one of, if not the, best placed to deliver more tin to world markets quicker than anyone else, as much of the infrastructure is in place.( Shafts, decline,roads, water, permits and electricity supply) Given conflicts in Myanmar, and ethical concerns in a number of producing countries, (child labour, pollution etc), extra production from SC may be the most practical way forward to increase global tin supply.

Apart from its extensive resources at South Crofty, CUSN has drilling exploration underway for evaluating UD lode, (multiple mineralisations), a second rig at Trenares lode, and has applied for permission to explore/drill at Carnkie South of Carn Brea. It alsoin the past mentioned plans to explore at Wheal Alfred near Hayle.
The conclusion I draw from this is that there are many ways in which CUSN can increase value for shareholders and provide employment in Cornwall. We seem set for an exciting time for 18 months or more as the results come in.

Bubble2021
I expect you have seen it but the company produced a list of its planned action over the next 18 months. There will be a lot of news flowing from drilling results - especially now they seem to have engaged a second drill rig. Here is an extract:-

"Within 12 to 18 months of the date of the AIM listing, the Company plans to:

Progress an 18 month 9,100 meter initial drilling program at United Downs to advance the project to JORC Compliant Inferred Mineral Resource definition, fully funded from the proceeds arising from the AIM listing. To date, a total of 4,040 meters have been drilled;
Test three lodes with a 1,000 meter of strike length to a depth of 500 meters in the initial phase. Management believes there are up to seven further mineralized lode structures with a total resource potential of between four million tonnes and ten million tonnes. To date, UD Lode has been traced over a strike length in excess of 200 meters and to a depth of 400 meters. Multiple parallel lode structures are present and drilling continues to further define these along with the principal UD Lode structure. A second target 900 meters to the south of UD Lode, called Trenares Lode, is now also being drill tested;
Subject to the outcome of the initial drilling program, undertake a subsequent in-fill drilling program at United Downs to advance the project to a feasibility study within three years; and
Evaluate other near-surface, high potential, exploration targets within transport distance of the planned processing plant site.
In the longer term, the Company intends to develop the South Crofty tin project as and when economic conditions and cashflows are supportive."

"Unrealized gain of $733,120 arising from increased valuation of Company’s holding in Cornish Lithium following its most recent fundraising completed in July 2021;"

That suggests to me that the holding is worth around $1.5m at the July valuation.

From the statement......
"South Crofty could potentially play a pivotal role in securing a domestic and sustainable source of battery metals as the UK transitions to a low carbon economy.”"
SC ticks the levelling up agenda box. SC ticks the green agenda box. SC ticks the Making the UK resilient box.

Pawgee - totally agree. The UK needs to be able to smelt ore. When mining re-starts we will be faced with the unpalatable likelihood that concentrate will be shipped half way around the world for processing. UK energy and manpower costs will necessitate that unless there is some Government intervention. It would be great news if smelting too resumed in the UK - that is something for Kwasi Kwarteng to consider perhaps.

Pawgee and Bubble. Thx for your kind words.

There is a big difference between metal mining potential in Cornwall now and in the past. The very many mines with different owners have now consolidated under the ownership of a very few companies... CUSN, SML, with a possibility of Cornish tin unlisted at present. Furthermore, deep mine exploration was rare in the past and very expensive. As a result deep levels ( where the ore grades are often the best) have not been explored or discovered. It was price collapse that brought an end to much mining in the past, but now prices are resurgent. There is plenty of mineralisation left to mine. Technological improvements mean output per man hour can be vastly higher than in the past.
CUSN's market capitalisation indicates a huge discount to NPV of known resources. The discount represents the risk that funding will not be raised to enable resumption of mining. Once finance has been raised that discount will reduce - hopefully dramatically. As the tin price in particular rises the probability funding will be found also increases. There are a number of drivers behind the resurgent tin price:- (Source Company presentation)
Tin is essential for the high-tech, low carbon economy – the “glue” in all electronics.
Tin projected to be the metal most impacted by growth of new technologies (batteries, robotics, solar power generation, power storage, IT, electric vehicles).
Tin has a “Critical Mineral” designation – USA.
There is no primary tin production in Europe or North America.
75% of mined production in Asia (China, Myanmar, Indonesia). subject to conflicts, ethical concerns and waning deposits
There is growing demand for “Clean Tin” – not funding conflict, not exploiting child labour, with a low environmental impact.
Technology supercycle starting in 3-5 years (International Tin Association).

The outlook for CUSN is very promising............................But I guess we are agreed on that already!

I think there will be quite a lot of information flow over the next few weeks. We are likely to have more drilling results, the decision over the new drilling exploration request at Carnkie, and exposure at the Mining Conference. The levelling up portfolio has just passed into Michael Gove's hands, and HMG is flush with cash to spend on Greening industry having been I think it was 10x subscribed for its £10bn Green bonds. Meanwhile EverGrande worries appear to be receding, allow tin and copper prices to resume their upward trend making the resources under SC, UD and CUSN's other 15,000 hectares of mineral rights ever more valuable. And Tungsten West is coming to the market - which will put mining in the SW back under the spotlight.
The big miners had a bounce today - which may be reflected in the smaller companies' share prices tomorrow. Any thoughts?

Good post Alkin.

What has been more overlooked than hydrogen fuel cells vehicles are hydrogen ICE vehicles. The latter offer advantages over fuel cell vehicles in that the IC engines are adaptions of conventional ICE. The adaptions do not significantly increase the cost of the engine. The fuel tank costs more, but the total price is little changed unlike a FCV where the price currently is a lot more.
Compared to battery EV's, hydrogen ICE vehicles can re-fuel quickly, and their range can be similar to diesel cars.
JCB have developed ICE hydrogen engines for their vehicles and hopefully it won't be long before smaller H2 ICE cars appear.

https://uk.investing.com/commodities/tin-streaming-chart

This is great news for the return of mining to SC. .......................... and for the share price.

Good spot Dr A. Also mentioned in Torygraph

"Rishi Sunak, the Chancellor, also hopes to issue £15bn of green gilts this financial year to raise money for environmental projects including clean transport, hydrogen generation and lower-emission agriculture."

https://www.telegraph.co.uk/business/2021/09/21/investors-offer-100bn-uks-first-green-gilts/?li_source=LI&li_medium=liftigniter-rhr

Nuthazard. A very interesting post. Recent thinking on hydrogen has seen a big role for hydrogen production by reformation of methane. But now the price of natural gas has quadrupled perhaps more time will be spent thinking of other ways of producing hydrogen - has PHE's time come?

Great point Sensetalka. Another revenue stream perhaps, hope so.
It is ironic to find PHE might be able to sell CO2 just as COP meets to negotiate how to reduce it.....

Unless you look them up on a Canadian broker's website, it is easy for new investors to miss announcements made prior to the AIM listing as UK brokers seem to show announcements from Aim listing onwards, this site being an example.
One of the announcements, which new holders may have missed, was this one relating to SC exploration at levels below the mine workings...... Because only one hole was drilled, it is unlikely the results had any impact on either the calculations subsequently stated for indicated or inferred resources.
The accompanying comment included:-
High-grade mineralisation also intersected below historic workings of the No. 1 and No. 8 Lodes.
Five new lodes encountered in historically un-mined area s , highlighting the underexplored nature of the South Crofty mine area.
Richard Williams, CEO, stated “The Intermediate Lode structure was predicted by our geological team to
be in this area but such a high-grade intersection so far beneath the old mine workings was not
anticipated, it does reinforce the exploration potential at South Crofty and our ability to find economic
structures within areas of the mine that have been previously overlooked.”
The full announcement is here:-
https://money.tmx.com/en/quote/CUSN/news/5570565770434456/Cornish_Metals_Reports_HighGrade_Tin_Mineralisation_From_South_Crofty_Drill_Programme
or
https://cornishmetals.com/site/assets/files/5359/2020-10-07_south_crofty_drill_results_3.pdf

That seems like a finger in the air anybody's guess to me. The entry point is probably highly influenced by the size of holding desired.
You cannot hope to build a significant holding all at the bottom. EMS is 15,000 shares - around £1550 worth......

https://uk.investing.com/commodities/tin-streaming-chart

https://www.internationaltin.org/copper-shines-at-united-downs/