Member Info for Valuation-it-is

BCB
I think we will not have to wait a few years. Mining professionals can see the way demand is going with electrification, EVs etc. They know demand will far exceed supply of many materials. Funding will follow them, so cheap assets are likely to be bid for, companies taken over etc. A certain amount of consolidation may in any case be sensible so that processing/smelting assets can be used by more than one mine/producer.

Have you looked at ALK ? What did you think?

MO

From what you have written I would conclude that the 25% free carried interest that CUSN has in CL's first project on CUSN mineral rights areas could be hugely valuable. Like you, I think that will be a brine project and not just for lithium. We are likely to hear more about Cl's intentions as CL moves towards its IPO this Autumn.
Given the need for strategic security of supply, I think we could see a smelting operation set up in the UK probably in Cornwall to keep the whole supply chain for tin and perhaps copper in the West. Cornwall often has a surplus of electricity which cannot be "exported" to the rest of the UK as the cable capacity is not large enough, so payments are made to turn off the Cornish turbines. An ideal environment then for taking surplus power from time to time to do smelting. (Processing i.e.separating and concentrating prior to that, is already envisaged to take place at South Crofty.)

Pawgee - thx for the link.

".....untapped value - not being recognised by the (stock) market" RW at 29.36 minutes into the presentation........
Nickel King Indicated 11.1m tonnes at.4 % Ni, + Inferred 33.1mt @.36% Ni open
Sleitat Tin tungsten resource
and Cantung and Mactung 1 and 4% royalties respectively. The latter having recently been acquired by Fireweed Metals

It sounds as if some of these may be about to fire up and benefit CUSN.

What came across to me in the presentation was that SC development is going ahead fast. Recruiting a key project team, more drilling to firm up the values of the resources - (and drive up the share price perhaps) and sufficient money to see the company through to the next stage - at which point the warrants will hopefully come into play.
On the UD side more results are expected soon. At that point, feasibility for development will be assessed. So UD is still in the picture.
Interestingly RW also drew attention to the company's N American prospects, Nickel King, Sleitat and the tungsten royalties which may fire up at Mactung. If these were to come about, CUSN would have a helpful further source of funding/cash flow. RW mentioned the US has put together a $250bn fund to help produce key minerals in N America. That would appear to make financing development much easier.
He mentioned a local community meeting to take place on 8th/September at Heartlands Centre, Poole at 6.30pm - Contact Irene Dorsman if you wish to attend.

pawgee
Irene Dorsman can probably help you.

irene@cornishmetals.com

Re aggregate sales MT said in the presentation that TUN was getting nearly £11 per tonne now. up from £6.50 at the start.
So, if they get 200 lorry movements day at say 20 tonnes per mvt that would equate to income of nearly £44k per day or approaching a maximum of £16m per annum income. if working a full capacity. That would depend on the supply of aggregate being maintained though.

From the Telegraph today

"The Government has confirmed a £100m investment into Britishvolt will go ahead, following allegations it was dragging its feet over pledged funding for the new battery plant.

In a statement, Business Secretary Kwasi Kwarteng said he was “delighted to confirm” that £100m from the Government would go towards the £3.8bn ‘gigafactory’ development in northeast England.

Earlier this month, the Labour MP Ian Lavery claimed the Government had put 8,000 jobs at risk by delaying the support, which was first pledged in January."

https://www.gov.uk/government/publications/uk-critical-mineral-strategy/resilience-for-the-future-the-uks-critical-minerals-strategy

http://eepurl.com/hYMVpv

https://www.gov.uk/government/publications/uk-critical-mineral-strategy/resilience-for-the-future-the-uks-critical-minerals-strategy

https://www.youtube.com/watch?v=hvMrPFMrJ2w

A most re-assuring RNS.
A small initial drop in output (down from 2.6m tonnes to 2.1 m tonnes in yr 1) is envisaged at a slightly lower level of concentration, enabling a large cut back in capex of between £18m and £28m and big operating cost savings.
No further share issues are needed. Again a positive. The small amount of debt required will probably come at a lower cost than before. Meanwhile the company has £22.9m cash.
The management change puts MT in the driving seat, that will re-assure investors.
One broker now has a target share price of £1.00.

MO link to article https://www.wired.co.uk/article/cornwall-lithium

Many thanks MO ,for this link. It really sets out well the outlook for Lithium.
I was particularly struck by:-
"Last year the European Commission forecast that Europe would need 18 times more lithium in 2030 against the current supply in order to meet demand for electric vehicle batteries. By 2050, it will need 60 times as much."

Zombi3
I am nervous about the cost estimate. Another company in which I am invested raised £40+m to complete the plant/equipment for a mine. After raising the money and 3 months after the costs were estimated it was found that steel cement etc had risen in price sharply 30-40% and they have had to put the project on hold and will probably have to downsize or raise more money.
The £20-£25m estimates for building a DMG have been around a lot longer, so I think the cost of building one may have risen considerably. I know PHE is not going to be financing the builds, others will, but a big rise in the cost may reduce the appeal of taking out a licence with PHE.
On the positive side of things syn gas and hydrogen are likely to have risen in value even more sharply. Having FOAK up and running would have been most helpful as costs / revenues would be clearer, and investors like certainty.

This is what they are looking for!

https://cornishlithium.com/company-announcements/cornish-lithium-announces-maiden-jorc-resource-for-the-trelavour-project/

MO

This Cornish tin bug is all ears ! Many thanks for your posts on lithium. I expect holders of CL, (including CUSN) will be hearing a lot more as CL approaches its IPO in the Autumn. The resources CL has announced were huge.

MO - good afternoon.
The de-watering will start when the de-watering plant is constructed. Importantly CUSN already has the pumps (on site) but the on surface treatment facility has to be finished off. About 6 months for that. Then the pumps can be turned on and pump a tonne of water every 3 seconds 24/7 for the 12-18 months that follow.
The good news is that CUSN is not waiting for dewatering to finish before they explore further. With two drills on surface and one down the decline they are going to get started shortly so that the feasibility study and planning processing plant can take place soonest. I take it as a vote of BoD and investor confidence to do these things in parallel. I also like the sound of ore sorting which if x ray sorting machines are to be used (perhaps underground) may reduce the amount to be lifted to the surface and processed thereafter - reducing costs.
The more announcements like this the better. The drilling may help to firm up the resources from approx 2+2indicated and inferred towards 20. That would give a huge lift to the value of what is underground and I would think a boost to the share price. Sir Mick seems to be pushing to firm up the resources /lift the value.

The Blue Wave Resources team recently spent weeks going through the books at South Crofty and ended up investing £25m, buying shares at 18p and receiving warrants to invest more money at 27p. Investors without BWR specialist knowledge now have the opportunity to buy at almost the same price in the market, without having to do weeks of research but having the re-assurance that a professional team considered it an attractive investment. Indeed Sir Mick Davis (head of BWR) has stated he is looking to make 3-4 times on his investment over the same number of years.

https://www.cornishmetals.com/site/assets/files/5449/421007_south_crofty_tin_project_mineral_resource_update_-_22_july_2021_-_sedar_copy.pdf