Member Info for Valuation-it-is

Given the need to provide a supply chain of electrical and battery materials, I wonder what CUSN, CL , SML, and TW will be able to supply? CUSN seems capable of producing tin, copper, perhaps zinc; CL, Lithium; SML tungsten , TW tungsten and tin.

Anyone know what other materials might be produced by these four companies?

Good morning Bubble. Good spot. Do you have an approx time of the item?

https://www.telegraph.co.uk/business/2021/07/02/vauxhall-plans-build-new-electric-van-ellesmere-port/

Thanks to Maico666 for the post copied and pasted her
he Problems with Copper Supply, from commodity and natural resource investors at Goehring & Rozencwa

“I have switched from being a structural copper bear to a structural copper bull.”
Leigh Goehring, Barron’s Commodity column May 2001.
Copper has emerged as a leader in this commodity bull market. We are strong believers
that copper prices are heading significantly higher. After bottoming at $1.95 per pound
in early 2016, copper prices have more than doubled. Copper equities (as measured by
the COPX ETF) have done even better, rallying over 200% — more than twice the
increase of the S&P 500.
The previous copper bull market took place between 2001 and 2011 and saw prices rise
seven-fold: from $0.60 to $4.62 per pound. As shown in the Barron’s quote above, we
wholeheartedly embraced that copper bull market and maintained sizable exposure
throughout the rally. The fundamentals today are even more bullish. We would not be
surprised to see copper prices again advance a minimum of seven-fold before this bull
market is over. Using $1.95 as our starting point, we expect copper prices to potentially
peak near $15 per pound by the latter part of this decade.

I remember now, one media report stated the company was looking into off-take agreements as a way to finance the re-opening of the mine. So it may be that little further equity is going to be needed, but I am going to have some cash ready in case....................
The huge publicity noted on this board today, does seem to be building towards something...............

CK Its good to keep firmly grounded and be aware of the challenges ahead.
From the exchanges I have had, I think the company understands that pre-emption rights are considered to be important by investors in the UK. So if there is to be a capital raise via a share issue at all, I think the company will give existing shareholders the opportunity to take part. If so shareholders would not be diluted, but they would have to find the cash to fund the equity element of any raise. It would do no harm if other shareholders mention their view on pre-emption rights to the BoD when they see them.
I think that given the large and possibly huge, asset value, the potential for exports, the need for the UK to have a mineral supply chain, we may find that the company qualifies for some low cost Government backed finance.

I picked up this from a Propinquity post on SML:-

"Advising the UK government to act within the next six months, to ensure that the UK possess its own critical-mineral supply-chain -
https://www.criticalmineral.org/post/cma-co-founder-gives-evidence-to-the-uk-parliament-environmental-audit-select-committee"
Key recommendations:-
Act now to stimulate both the market and supply chain within the next six months or risk the UK being irreversibly left behind by our regional competitors.

Create a single UK governmental body overseeing the development of the critical mineral supply chain and its downstream users.

Ensure that UK energy prices for the critical mineral and associated original equipment manufacturer industry are competitive regionally by cutting our prices to under 5p/kw/h.

Support UK exploration and mineral extraction companies to ensure the UK is part of the search for new minerals to deliver the green energy transition.

Develop a midstream within the UK.

Ensure UK critical minerals are delivered to best practice industry ESG standards to level the global critical mineral playing field.

Many thanks CK, again most interesting information.

A most interesting post CK - Many thanks. Do you have similar info on the United Downs area?
I know the Wheal Maid Decline is key, but know nothing of the shafts which may or may not be useful if mining re-commences at UD. Presumably the mines around UD are flooded and will need similar treatment as SC to get back into production?
I was struck that RW was interviewed down the mine at SC below the water table. Presumably that may mean some mining can take place before dewatering is finished. Not sure it would be a good idea - what do you think?

ghin

Please don't hesitate to ask if you have any queries. I will do my best to help, and I am sure that others here too will be willing.
We are fortunate to have some very well informed posters who have both good geological knowledge and also specific knowledge about CUSN's resources.
Foran intial overview, I would start with a look at the presentation that you can find on the company's website:-
https://cornishmetals.com/investors/presentations/

Its on
https://www.bbc.co.uk/iplayer/episode/m000xhq7/breakfast-02072021
only available for another 16 hours

Starting at about 1.48.27 in.

RW down the mine, showing (the value of) the decline. It is interesting that the decline goes below the water table. Any thoughts on the financial significance of that CornishKnocker or Southwesterner? i.e. that mine areas below the water level can be accessed already.

Any day now.

https://www.bbc.co.uk/iplayer/episode/m000xjfy/spotlight-evening-news-01072021
at about 5 minutes in about Geothermal - who are partnered with Cornish Lithium.

There is clearly a big effort to raise national awareness of what is going on in Cornwall

CK
I think you are right. The Government is "getting its ducks lined up"i.e. its industrial grant mechanisms, the Cornish Council is firmly behind the company, and the company itself is both getting the deals *done to facilitate SC and the physical means such as that you reported yesterday (de-watering chairing).
* Deals include, tailings arrangements, water disposal, shaft use, mineral rights and today the highly advantageous re-negotiation of the GSSF/Tin Shield arrangements.
What does this mean for the shares? Currently the diluted market cap is around £47m. So the discount to fair value is huge.
The discount represents the risk of nothing happening for whatever reason particularly at SC. The NPV of SC is around $300m or £200m, so the discount to SC alone is around 75%. Given there is likely to be considerable value in UD and other mineral resources such as Gwinear and the rest of the 30,000+ acres of mineral rights, I think the discount is even bigger than 75%.
As CUSN heads gradually towards production that discount should narrow. We have evidence that process is well underway, so I think as word spreads about CUSN, via the company and its brokers we will see a gradual, sometimes substantial rise in the share price. The announcement today was complicated and confusing, but Angel and Hannam are likely to sort that out.
Opportunity knocks..........................

This is a stunningly good deal for Cornish Metals.
Given the NPV of the SC project is now around $300m (and that before the full resource potential is known), the prior agreement entailed handing 25% of that sum over to the vendors when a production decision was made. i.e. around $75m or £50m+ as well as 2m shares.
The replacement deal, involves a fraction of that sum in stages, and with shares, to be issued at the future price.
So if CUSN does well the vendors do well.
I think that not only has a big hurdle to getting SC financed been overcome by this move, the value retained by existing shareholders has been substantially increased.
I think shareholders should be extremely pleased not just with the deal, but with the demonstration of the BoD's deal making abilities. This is an example of what we can expect from RW and the BoD. We should have increased confidence in the future and prospects for CUSN.

https://www.marketwatch.com/story/the-world-risks-running-out-of-copper-and-heres-how-high-prices-may-rise-as-the-economy-reopens-bofa-warns-11620073503?fbclid=IwAR3MUSLNQylsKIh7y3qrXX2BVdibuFOxLQyPssGluvrmAk9OUKqrVztcxJQ

Thx due to Propinquity on SML board

https://www.proactiveinvestors.co.uk/companies/news/953762/copper-set-to-climb-even-higher-pension-funds-reckon-953762.html

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

CK Great news and thanks for posting. I think that is an indication that de-watering is thought to be going ahead soon. That must mean that financing (£15m) for the de-watering (at least) is also thought to be sorted out. Next, we may get some initial feedback from UD drilling.

I think this from the Telegraph today may help us read between the lines.
"Britain takes a major step towards throwing off Brussels shackles on state aid today as it unveils a more flexible subsidy regime in a move likely to reignite an independence row with Holyrood.
The Subsidy Control Bill announced in last month’s Queen’s Speech will be introduced to Parliament, aimed at channeling taxpayer cash towards businesses to meet ambitions on levelling up and net zero goals."

Once this is through Parliament, my money is on some aid for SC.

....how long Peel NRE's option for exclusivity lasts? If it is open-ended, PHE are in a weak position, if it has a closing date, then PHE are in a much stronger position.