Member Info for Valuation-it-is

The text of the twitter link states

"President Biden has also announced his intent to ask US Congress to designate the US as a ‘domestic source’-- meaning that British companies would become eligible for US Government investment under the Inflation Reduction Act on the same basis as American firms. "

The second US above probably is a typo and should read UK. Assuming that is so, we need someone to indicate the likliehood that the US Congress will agree, and when, and when it would become effective.

MO

Only relevant to MO for elsewhere ......Latest info I have, which I believe to be in the public domain, is 5 potential funding partners . Awaiting move by biggest of 5 . So my view is JV...................

Suggest revert to other board and filter timewasters.

Troajan Interesting addition to the RNS.

This bullet point within "snapshot" is dynamite! "Cornish Metals optimistic over potential for "whole new, district-scale target""

Good you are back Bubble - your timing has been great !

It is very encouraging to hear about the progress. In particular the work on the mineral resource estimate. The potential here is huge and will be partly addressed by work firming up the resources in the MING zone. The current indicated and inferred totals are around 4m tonnes. Page 9 of

https://cornishmetals.com/site/assets/files/4930/cusn_corporate_ppt_may_2023_comp.pdf

gives an indication of how this may develop. My understanding is that page 9 excludes anything recently found in the wide formation.

Otherwise, I think the statement within the RNS that "The final plant design will incorporate potential future throughput expansions" is a very positive indication that production may be increased from initially proposed levels.

Given recent developments i.e.:-

Https://www.gov.uk/government/news/uk-and-us-launch-first-of-its-kind-economic-partnership

the outlook for gaining the all important funding for the move to production may become a lot easier. VBR have recently raised $650m massively more than needed for the next equity tranche here. Hopefully there may be competition to provide the funding.

MO Many thanks for posting that one. Things are hotting up all round. I wonder if the key finance provider for you know who, will be JLR. The meeting with Sunak seems to have been postponed or cancelled.

Https://www.gov.uk/government/news/uk-and-us-launch-first-of-its-kind-economic-partnership

"Negotiations will begin immediately on many aspects of the partnership, including on a Critical Minerals Agreement. An agreement would give buyers of vehicles made using critical minerals processed or mined by UK companies access to tax credits in line with the US Inflation Reduction Act. The Inflation Reduction Act provides a $3,750 incentive for each vehicle, on conditions including that the critical minerals used in its production – principally used in the battery – are sourced from the US or a country with whom the US has a critical minerals agreement.

The UK is already a net exporter of raw materials for EV batteries to the US and this agreement will help UK-based firms involved in the mining, recycling and refining of critical minerals who are suppling US electric vehicle and battery manufacturers – benefitting this growing industry. This is a a sector with companies all over the UK, including nickel production in Wales and lithium processing in Teesside."

Source: https://www.gov.uk/government/news/uk-and-us-launch-first-of-its-kind-economic-partnership

Propinquity

Let us hope there is some benefit. Without details of how the proposals will work, one wonders whether the proposals can gain traction. HMG seems incapable of getting the planning system to work properly, unable to make equity investments and at the moment is as much a hindrance to private sector efforts as it is a help.

I did find this section interesting:-

"New opportunities for increased investment in one another’s economies. President Biden plans to ask the US Congress to designate the UK as a ‘domestic source’ within the meaning of Title III of the the Defense Production Act – meaning British companies can benefit from US Government investment on the same basis as American firms."

No timescale to the "asking" is attached to that though. Do we want to see big US equity stakes in our most promising companies? It often seems to be the case, that big stakes are gained through placings, which are often completed at very large discounts to current share prices, and even bigger discounts to fair value.

Also there is another "jam tomorrow" clause:-

"Negotiations will begin immediately on many aspects of the partnership, including on a Critical Minerals Agreement. An agreement would give buyers of vehicles made using critical minerals processed or mined by UK companies access to tax credits in line with the US Inflation Reduction Act."

It will be interesting to see if the data bridge is set up and operating before the credits are delivered.

Hi MO, hope all is going well.

I wonder if we are waiting for the same thing as Rishi - i.e. the meeting with the Tata chairman Natarajan Chandrasekaran. All gone a bit quiet since 24/5/23.

Source: https://news.sky.com/story/tata-jaguar-land-rover-owner-set-to-build-new-gigafactory-in-uk-12888473

Brussels is imposing minimum quotas for sustainable aviation fuel – made from waste products such used cooking oils – on EU airlines and their suppliers

At least 2pc of all fuels supplied at airports from 2025 will need to be sustainable, rising 6pc by 2030, 20pc by 2035 and 70pc by 2050 under rules announced earlier this year.

Source: https://www.telegraph.co.uk/business/2023/06/05/stop-striking-french-air-traffic-controllers-ruin-holidays/

PHE can process to syngas and no further if they wish. Further processing of syngas to hydrogen requires more plant and greater capex.

Re patents, I am not aware PHE has any. It is a year or two back but I remember hearing that PHE did not think it was worth getting patents because they would have to file the details of their IP, and enforcing their patent would be impractical. So it was thought best not to bother. Given the loss of staff, I wonder if that was a mistake.

PHE can process to syngas and no further if they wish. Further processing of syngas to hydrogen requires more plant and greater capex.

Re patents, I am not aware PHE has any. It is a year or two back but I remember hearing that PHE did not think it was worth getting patents because they would have to file the details of their IP, and enforcing their patent would be impractical. So it was thought best not to bother. Given the loss of staff, I wonder if that was a mistake.

"Brussels is imposing minimum quotas for sustainable aviation fuel – made from waste products such used cooking oils – on EU airlines and their suppliers

At least 2pc of all fuels supplied at airports from 2025 will need to be sustainable, rising 6pc by 2030, 20pc by 2035 and 70pc by 2050 under rules announced earlier this year."

Source : https://www.telegraph.co.uk/business/2023/06/05/stop-striking-french-air-traffic-controllers-ruin-holidays/

That is why the Tomra ore sorters are transformative to the economic case.

Going underground

Take a look at the reference I have already given you.

Goingunderground

In the last week under the old management (Wolf) before closure, the mine worked successfully, but it was too late. The grades are low, but the problem was not that - it was over-production of slimes and loss of tungsten therein i.e. the wrong capital plant for the job. Current management have addressed that and with new tech - i.e.x ray ore sorters have transformed the flow sheet. Awaited now is the last permit

Good Morning LB

The Admissions document states:- The Company has entered into offtake arrangements with Wolfram Bergbau and GTP for the sale of tungsten and with Afrimet Resources AG for the sale of tin, with the Afrimet Offtake

Goingunderground

I think you will find the grades listed on page 31 of the Admission document under the heading :-

A summary of the Mineral Resource Estimate for the Hemerdon deposit, including the killas and

stockpiled material is set out in Table 2 below:

The rest of your points are clearly due to the impact of the Environment Agency not having yet provided the final single outstanding permit to operate the plant. An issue over noise may be behind the delay. Noted by another poster on this board recently was that an order for noise reducing baffle equipment had been placed. My guess is that this needs to be tested before the OK is given or not given.

Https://www.independent.co.uk/news/uk/eso-ofgem-zombie-parliament-b2350299.html