Member Info for Valuation-it-is

Gingy

The Preliminary Economic Assessment (“PEA”) is expected to be published in Q2 2024 to provide interim guidance ahead of the publication of the Feasibility Study (news release dated January 17, 2024).

Source:-https://cornishmetals.com/news/2024/cornish-metals-releases-audited-financial-statements-and-managements-discussion-and-analysis-for-the-period-ended-december-31/

"At closing VBR will enter into a relationship agreement with Cornish Metals and its nominated adviser to ensure that the company can continue to operate independently."

Source:- https://www.vision-blue.com/news/vision-blue-resources-strategic-investment-in-cornish-metals/

Https://www.youtube.com/watch?v=n9SD1Z1f0ac

...for SML investors. Survival of a potential processor of Redmoor output, and survival of a potential predator. Watch that space. EA permit at Hemerdon dependency......................

Crocqman

I think you can congratulate yourself for paying about half the price Sir Mick and Vision Blue were prepared to pay a long time ago, when South Crofty was at a far less advanced stage of re-development.

Vii

A good sign that the company is buying its own shares at prices up to £24.32. Why sell below that figure?

Gingy

In the 2017 EA the mine life was estimated at 8 years. Since then a lot of exploratory drilling has taken place and the inferred and indicated numbers have risen significantly.

See page 18 of the Feb 2024 presentation.

https://cornishmetals.com/site/assets/files/4930/cornish_metals_-_corp_ppt_february_2024.pdf

You will also see the graphic possibility on the RHS of the page of firming up more resources.

Hopefully more drilling results will be with us soon.

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.