Member Info for Valuation-it-is

Great spot thetriplestar.

There is a comment within the article of great significance. That is how CUSN is seeking to finance the re-opening of South Crofty. By using offtake agreements, those who will buy the metals in the future provide upfront finance to get the mine up and running. This may result in little need to call upon existing shareholders for funding.

"Williams said a number of firms have already been in touch. No agreements have been signed yet, though when a mine is being built it is usual for a potential customer to enter talks for what is called an 'offtake agreement'.

This means that in exchange for providing some funding for the project, they will be able to receive a portion of the materials produced by the mine.
Here is the extract:-
Williams said: 'Tin is essential in batteries and the rise in prices has been driven by this.
'We see an opportunity to tap into end users like electronics or car makers, who might want to secure that supply by investing in us at the development stage.'"

However I guess the company will have to be careful. Govt support is likely to be forthcoming on the basis of increasing UK resilience. So supply contracts with foreign entities may not satisfy this aim.

Approx. 100 people watched it live.

Extract from recent RNS:-
""The major lode structures that comprise the Mineral Resource remain open along strike and to depth.""
It means the end of the lode has not been determined - which in laymen terms indicates an upside to the published official resource.. The estimate covers only the area drilled.

If I heard correctly, Mr Williams said in the interview the total indicated and inferred resource for South Crofty had risen from 2.5m tonnes to 4m tonnes. All other things being equal ( they are not) I think that would cause a 60% increase in the NPV of the PEA.
Since the PEA was published, the tin price has also risen by 40-50%, which according to the sensitivity analysis would add about $250m and probably more now the resource is up 60%. All of this suggests that the updated NPV (after tax and after costs) of the PEA for S Crofty is North of $400m-$500m.
Furthermore Cornish Lithium in which Cornish Metals has an interest ( see previous posts) is raising further capital on a pre-raise valuation of 80m. It seems that CUSN's interest in Cornish Lithium may already be worth the equivalent of a very significant proportion of CUSN's market capitalisation. If one were to say £20m, that would mean South Crofty, United Downs and the 30,000+ acres of mineral rights are in at a valuation of £20m too (as CUSN's market cap is around £40m)
I think were are heading for a significant re-valuation..........................

""The 2020 drill program at South Crofty has successfully achieved its two primary objectives. Results returned from each of the No. 1, No. 4, No. 8 and Intermediate lodes have confirmed the high-grade nature and persistence of the known mineralized structures within South Crofty. In fact, all of the drill intercepts reported for the 2020 program lie outside the current published NI 43-101 mineral resource""

Thanks oneandonly1 very helpful to see spot up strongly today.

https://www.proactiveinvestors.co.uk/companies/news/918284/five-reasons-strongbow-explorations-latest-discovery-could-be-transformational-918284.html

It was Robert Jenrick being interviewed by Sarah Smith, who said that the Government would be announcing today £60m of funding for Cornwall in the Town funding programme. Focusing on Penzance, St Ives and Camborne the funding will be applied to projects local transport, skills training, culture, tourisim attractions and regeneration.

https://www.eventbrite.co.uk/e/invest-in-the-future-of-mining-tickets-156502381837

https://www.bbc.co.uk/news/uk-england-cornwall-57007894

Southwesterner and Cornishknocker

The indicated and inferred resources of the upper mine have 770,000 tonnes of resource. Do you think it is practical/possible that CM could start mining that resource, whilst simultaneously de-watering the lower mine? If so, it might enable cash inflow to begin much earlier than hitherto thought. It should allow for at least 2 years of production before starting on the lower mine............................

https://www.lme.com/Metals/Non-ferrous/Tin#tabIndex=2

https://www.eventbrite.co.uk/e/invest-in-the-future-of-mining-tickets-156502381837

https://www.bbc.co.uk/news/uk-england-cornwall-57007894
Connecting Cornwall to the G7 countries.............
"In the 18th and 19th Centuries, Cornwall was the global centre of tin and copper mining.

Up to 500,000 Cornish miners took their expertise and shared their skills abroad, in countries including Australia, USA, Canada, Peru, Mexico and South Africa.

These also included those looking to make a living after the price of copper crashed in 1866.

"There are an estimated six million living around [the world] today who are descended from those migrant Cornish workers," according to Cornish Mining World Heritage.

In Canada, communities were formed in Newfoundland, Ontario and the Prairie Provinces, and Cornish is included as an ethnicity option on the Canadian census.
'Tremendous future'

The last mine to stop working in Cornwall was South Crofty in 1998, but in 2017 Strongbox Exploration, a mining company with Canadian connections bought it with a plan to mine for tin once more.

The company has changed its name to Cornish Metals and is now listed on the London and Toronto stock exchanges.

Richard Williams, chief executive, who lives in Vancouver, said: "What we have seen over the last year in particular is much greater demand for electronics, and tin is a fundamental component in anything electronic.

"Cornwall has a wealth of tin so we think it has got a tremendous future." "

It was Robert Jenrick being interviewed by Sarah Smith, who said that the Government would be announcing today £60m of funding for Cornwall in the Town funding programme. Focusing on Penzance, St Ives and Camborne the funding will be applied to projects local transport, skills training, culture, tourisim attractions and regeneration.
There is one obvious regeneration project I can think of in Camborne, so fingers crossed for later today...................

https://www.iea.org/reports/the-role-of-critical-minerals-in-clean-energy-transitions

https://planning.cornwall.gov.uk/online-applications/files/07925664529592279340CB0A0B44C13E/pdf/PA21_02353-SITE_PLAN-5531456.pdf

Tin is in.

https://www.internationaltin.org/storedot-accelerate-to-fast-charging-evs-with-silicon-and-tin/

On the Canadian board someone stated that drilling commenced April 08.
I think they mean April 8th that was in 2021. Not as later stated 13 years ago.
On the contrary, CUSN seems to be moving quickly ..................

ForestGump
I intend to go to the visitor centre so will report on this board what is to be seen. Hope that will help.

Southwesterner

I think the original plan was to have one drill rig perhaps two for the 5 original drill sites. To have three present suggests to me an intention to speed up the process. I think that is a good sign, do you? Do you read anything else into it?
AS noted previously on this board, the company has applied to drill 4 holes in a further area to the South. Perhaps that is what the 3rd rig is for?