Member Info for Valuation-it-is

CK The news of you joining up seems to have got Canada going!
https://money.tmx.com/en/quote/CUSN
now C$44.5 = 27.7p

I think Lansdown were one of the four institutional investors that took a stake in Tungsten West, also with Schroders, Orion and Axa. So they seem keen on Mining investments in the SW. I guess they may want more. Watch for more TR1s.
Lansdown are probably investing from a pool of wealthy investors funds.

MO
If all goes well, there may not be any further financings. Because, assuming the warrants are exercised, a further £60.75m share capital will be raised that way. That would leave the company with plenty of scope for debt/project finance rather than a return to shareholders for more cash.
If things go badly, then the company will not need further finance.

CK
Congratulations. You should have a lot of satisfaction restoring SC to its former glory.

Your knowledge/ input will be missed on this board. Good luck

Dumbpunter -

That was great timing! Not so dumb.

The announcement of the 24th included..
"The planned use of the proceeds of the Offering is to complete a dewatering programme and feasibility study at South Crofty, evaluation of downstream beneficiation opportunities, and potential on-site early works in advance of a potential construction decision"
It is the "downstream opportunities" which are likely to include smelting. If this is going to be considered, then US Department of Defense/ MoD/ HMG are likely to be taking part in deliberations as strategic implications will have to outweigh the economic disadvantages of high energy and labour costs in the UK vs China.

https://ceo.ca/cusn

Shame the company did not have a rights issue 18 months ago when the share price approached 10p. It could then have built a DMG or TIC at the lower prices that were then prevalent. We would now be demonstrating a working example to customers and running test of different mixes of materials. Why was the opportunity not grasped? Lack of ambition/experience perhaps, or was the technology not ready? Anyway we must be grateful that PDD seems to be grasping the opportunity now.

You are right. There are expected to be lodes at lower levels which have not been mined in the past. But now with better exploratory kit, it is much cheaper than was the case long ago when exploration required digging down to find what is there. And much less effort to extract too.
Take a look at the graph on the RHS of page 8 of the presentation:-
https://cornishmetals.com/site/assets/files/4930/cusn_corporate_ppt_may_2022-compressed.pdf

Whilst the graph shows the current mineral resource is 4m tonnes( Indicated and inferred), there is "potentially" another 13-17m tonnes. CUSN will be using some of the funds raised to "prove up" that potential. If say the mineral resource rises to 10m tonnes at a grade of 1.6% that would mean 160,000 tonnes of tin was contained . ..... The excitement will build as water goes down and drilling results come in.

MO

Cost per drill depends very much on the depth drilled with step up function too, as the type of drill rig changes for increasing depth requiring more powerful kit.

LB I heard a similar story that WA had recruited more staff for analysis work. Activity is increasing around the mining district, with Cornish tin nearly completing its second drill hole, as well as CUSN expanding operations prior to de-watering Then there is Mark Thompson's latest effort to consider ........Godolphin.... Exciting times

Northflag
It will be interesting to see how fast the de-watering plant gets built and then running. Once water levels start to fall, the company can considering further exploration/confirmation drilling from within the mine, which will be a lot quicker than having to drill from the surface.
The delay in receiving analytical results from ALS in Ireland is probably due to the steep increase in exploration activity in Cornwall/Devon after a long period of inactivity which caused analytical capacity to be run down.

The Cornish Mining Conference will take place this year at the Falmouth Hotel, Castle Beach on Thursday 29 September 2022

NF/Crocqman
I think Thursday will give the go-ahead and Sir Mick and other investors will come in at 18p/share with the £40.5m capital injection which will be transformative. So the opportunity at the moment is to buy at the same discount price as Sir Mick without having to come up with megabucks and piggy back on the conclusions of the research of the VBR team
Given his record that would seem to be a good position to be in. He is looking to treble or quadruple his money over the investment period - which if I remember correctly is about 3 or 4 years. Not only a great return but also helpful for the Cornish and UK economy. That return is however dependent on the tin price. If you think the long term trend for tin demand will re-establish itself after the Chinese have got through their covid lockdowns, then this seems like a lucky opportunity. If you think that recession is going to destroy demand for tin and the uptrend in demand for EVs /circuit boards etc then the tin price outlook may not be so benevolent and helpful to CUSN.

I think the share price fall is due to several factors. One of them is having a discounted placing. Another major factor is the fall in the price of tin, which I guess is a short term move as much of the tin-using electrical industry in China is shut down for covid at the moment, whilst tin producing areas are largely keeping going. A reversal will occur at some point as the long term trend re-establishes itself.
Hear what you say about cash, but who wants to hold that when its value is going down through inflation at 10%? per annum? Better to be invested in a company with pricing power or inflation protection. The latter will be delivered by CUSN when it starts producing.

This company must look like a bargain to the US Dept of defense. Capable of providing 2 key strategic metals, with £10m's cash in the bank, hundreds of millions already spent on plant and removal of waste, all for a market cap of £57m.

Thanks for the heads up Fira.

The US is waking up.

https://www.mining.com/web/pentagon-asks-congress-to-fund-mining-projects-in-australia-uk

https://www.mining.com/web/pentagon-asks-congress-to-fund-mining-projects-in-australia-uk

Bingo!

natnrg
By my calculations, using a pre announcement share price of 27p, the ex placing price would be 23.04p.
That is 286.3637m old shares at 27p plus 225m new shares at 18p giving a total value of £117.818m which if divided by the total number of shares after the placing i.e. 511.3637m gives a weighted price of 23.04p. So it looks to me if we assume away any other impact on the share price, that the dilution is already more than factored in to the current market price. In the intervening period since the announcement, there has been some slight fall in the price of tin, increased concern about recession and adverse news from TUN , but it does not look to me as if all the benefit of having a significantly greater chance of the mine coming in to production - ( as a result of the funding) has yet been factored in. Perhaps the vote, if positive, will change that.
The management have every incentive for a share price recovery. Getting the share price back over 27p underpins the exercise of the warrants and the further £60.75m extra cash it brings. Quite apart from their own investments. Sir Mick is looking for a 3-4 times return on his money too.
As before, the key is the price of tin.