The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Major acquisition - significant stake in Munni Munni Deposit 2.2m oz Pd, Pt and Au
Pd trading at $2,200/oz more than gold
Previously Lonmin spent over $10-15m on the project
Lots of other metals in the deposit Upside is huge
Plus UFO owns all the surrounding areas!
UFO on the right path now, growing metals in the ground worth $ billion and now has two proven deposits/ mines - Eliz Hill Silver and now PGM deposit in Tier 1 mining jurisdiction
Great results over $8-10m CASH up and well capitalised
Fe - development project
Eliz Hill - silver and base metals - drilling complete
Munni Munni north 117km - in huge world class province
Mexico silver
lots happening guys - keep the faith this co is going to go gang busters!!
Great results over $8-10m well capitalised
Fe - development project
Eliz Hill - silver and base metals - drilling complete
Munni Munni north 117km - in huge world class province
Mexico silver
lots happening guys - keep the faith this co is going to go gang busters!!
Guys its been pretty rapid pace at UFO well done to the patient investor
It’s quite exceptional : drilling in less than 12 months and convert drilling to a JORC resource and now a Scoping Study! You dont see this often. Also This is iron ore - much simpler to make money from bulk commodities dig and ship (no processing/ no met issues) versus gold/ copper /nickel just google FSTE 100 - top companies are miners and 90% of profits come from guess what ? Fe
Let’s not get to distracted its pretty simple:
Top team in place including ex Fortescue (FMG) engineers (little iron ore co that was worth nothing now $20b!)
Revenue $120 (DSO 62% Fe)
Cost < $60/t
profit = $60/t
Production 1.25m
total profit $75m Per Annum
Mine Life 10 years (initially!!)
Not drilled 9km ridges
Not drilled Brockman (ex BHP prospects)
Assume Fe price of US $100/t then profit will be $50m
Call it $50m x 10 less bugger all capex = $500m net cash flow
Lowest Risk mining jurisdiction in the world
No.1 premier iron ore country (neighbours are blue chip majors)
Pls discount above how you want but….
Then Add UPSIDE to resource - its not 10mt but maybe x 5 or more this size
ADD Brockman ( ex BHP prospects staked by majors but missed out to UFO - this could be 2nd company maker or project)
Ooops forgot Eliz Hill ? highest grade silver mine in Aus with 1% Silver grades and pure silver nuggets?? Plus 110km2 of PGM / mafic zone in archaean rock exploration licences - discovery potential (high)
Do the maths looking at 4-5p - Wont be overnight but instos and funds will be buying this soon
Looks like this will break 1p as further news will re-enforce the value proposition of key assets of iron ore and silver and more
These companies take some time but re-rate on back of further news and market understanding the value of underlying asset iron ore could have a valued of $5 to $20/t as it progresses. Silver will have significant value as well there is a deposit just needs to be defined further
Drilling at Eliz Hill Silver - no news yet on drilling but expected soon
Alien has released a much-anticipated update on its Han**** Iron Ore Project (‘the Project’) in the Pilbara region of Western Australia. Initial assay results from the second phase of resource drilling have demonstrated significant widths of direct shipping ore (‘DSO’) grade intersections at the Sirius Extension from surface, all of which point to a contiguous grade deposit. With the Project potentially firming up as a standalone operation, selected results include 47m @ 61.50 % Fe from 2m from hole AM21RC002 001 and 78m @ 61.20 % Fe in hole AM21RC002 002 from 1m highlight the scale of the opportunity. Having now defined continuous DSO grade iron ore over a strike length of 350 metres at the Sirius Extension alone, once all laboratory results are available management will have sufficient data to calculate a maiden JORC resource for the prospect.
https://mcusercontent.com/d9ebd7c1aa0f3dbc5fab42eca/files/aa63aa06-cb91-dd79-a571-98e2182ec89c/AlienMetals_11_8_2021_FINAL_BG.02.pdf
Anything above 52% Fe is direct ship (no processing just dig and ship)
60%+ (rio and bhp style grades) fetching $200/t plus or minus.
Lets do the sums
Fennix 10mt = $150m ($15 per resource tonne valuation)
Alien still has km to drill on Han**** - over 4 new DSO zones discovered
Sirius confirmed to have a resource
What about Brockton (ex BHP deposits) - still to be drilled
Worth looking at potential valuation of the Fe plus the highest grade silver mine in Australia (shortage of silver now at the Mint) and mexico silver, and drilling at Cu-Au project!
more drilling = more news = potential discoveries we know what happens to share prices then
Artitlce from A Ford - summary of today's results
Alien Metals returns high grade XRF results from latest round of drilling at Han****
Alien has a diverse portfolio of assets in Mexico and Australia
Alien Metals Ltd -
Alien Metals Ltd (LON:UFO) has completed its Phase 2 drilling program on the Han**** tenement, which is part of the Hamersley iron ore project in Western Australia.
The program targeted three main direct shipping ore (DSO) zones identified in the maiden drill program, which intersected high grade DSO mineralisation.
Around 2,175 metres of drilling was completed, with excellent hand held portable XRF results across all targets.
On the Sirius Extension, which adjoins the Sirius iron ore project held by Brockman Mining, significant pXRF readings were returned, including 23 metres grading 60.5% iron, 28 metres grading 60.5% iron.
High grade returns were also delivered at Ridge C and Ridge E, and significant strike lengths established.
"Being able to retain the same drill rig and crew for this critical second phase of drilling, particularly when there is such a high level of demand in WA, was a great coup for us and we are delighted to have completed this second phase so quickly after the first,” said Alien chief executive Bill Brodie Good.
"We now hope to be in a position to produce a maiden inferred resource on the Sirius Extension prospect and subsequently plan some further pinpoint drilling in order to develop potential additional resources on one or several of the western ridges. We plan to further explore Ridges C and E while advancing exploration on the highly prospective and pretty much non explored remaining extensive ridges we have outlined.”
See Donavon 2 Cu-Au project announcement last week - not all targets drilled - Copper Water Well with grades of 3% not drilled yet!
GGP didn't find Haverion with first partner, they made massive discovery then brought in second new partner NEWCREST!
Iron ore looking great DSO grades 62% Fe
Also pure silver at Eliz Hill to be drilled
Gents pls consider the facts
UFO one of the best performing shares in last 12 months - investors who got in made over 10-15 x
Iron ore results are spectacluar 100m+ of DSO grade (60% Fe ) at $200/t do the maths!
Fennix trucking over 450km and has 10mt valuation $150m
See BC Iron 100mt sold project and now receiving $80-100m per annum in royalties!!!
What if UFO has 100mt -
What is UFO valued then?
Plus Australia silver
Plus Mexico silver
what if silver goes to $40-50 per oz
patitence required UFO is drilling mountain ranges wider than the City of London!
Note london shut down for 8 months
Western Australia is still operating pretty much non - stop but there are shortages people and equipment as you cant get in or out of Australia !! UFO has team and people in Aus
good luck to all but remember GGP went from 0.2p to 2pm
Next leg 2p to 22p!!
Dragline, you will be removed from this chat room.
Your statements are false
1000's meters of drilling
drilling at han****
acquisitions
its a project generator company
clearly you didnt particiapte in the turner pope or first equity raise
investors are happy returns of 10-15 x (for the facts: 2020 placemetns at 0.15p and 0.08p plus 1 for 2 warrant with ex prices of 0.15p and 02p please check my return figures! UFO in 10 bagger club which are not in clearly!)
pls go back to buying your boring UK stocks
this is not for school boys
Gents, some good comments lets look at the facts:
Alien has two Exploration Licences covering 50km2 in the HAMERSELEY RANGES - the number one iron ore province in the world. Rio and BHP are worth $100's of billions - main reason IRON ORE PROFITS from HAMERSELY RANGES (say $200/t less costs circa $20-30-/t margin $170/t currently but assume $100/t margin for other producers due to less economies of scale and using truck vs rail etc)
Valuations for junior Fe are clear
Fenix $150m (10mt circa $2b in situ resource) so you get about 7-10% value of in situ resource or circa $10-15/t
Atlas - sold for over $500m (to Alien neighbour Gina Reinheart - Han**** when price wsa $80/t so mutlipy the value today)
Plenty of other junior iron ore operators in Australia - no need for railways - dig - truck - ship
Low capex model
Han**** ranges - UFO has proven 3 or more areas of dig and ship ore ie 55% + ore
Brockman Project - containing BHP prospect 15,19 and 20 high grade DSO at surface
you would expect the ore to be at depth. why? Rio and FMG drilling on the souther boundaries and BHP estimated some tonnages in the 1970's
These projects need to be drilled out
Assume initial resource of 5-10mt =value $75-150m (just the start)
A resource of 5 -10x this amount, do the maths
I would be surprised if they do a JV immediately - to maximise value, project must be drilled and prove up DSO exists and there is plenty there - see maps and legend on distance - there are km of "iron ore ridges"
UFO News report and twitter :
Alien now commencing drilling phase 2 of Han**** ranges - expect big DSO results from Sirius extension (previous results 120m @61% Fe - this is signfiicant and proof)
Brockman drilling say Q3 - to test for the first time the BHP prospects and assumptions
JV and offers should be expected towards end of year
Note: Fenix didn't happen overnight - listed on ASX 2 or 3 years ago was 5c a share now 36c+ (return 700%)
Funds not required with circa £3.5-4m cash in the bank plus warrant exercise brings in further funds
in this bull commodity market there will be M&A using scrip
Iron ore at all time hights $200/t yet?
Silver $27/t nudging $28
copper demand going crazy - not from china this time but western world - notice the EV/ Green infrastructure boom coming up see Biden's announcement 2-4 trillion going into infrastructure and electrification/ de-carbonisation
will need lots of Fe (high grade DSO stuff which Alien has is greener and cheaper to process into steel
Silver - for solar and industrial use/ investment purposes
Copper - potential at Donaovan 2
PGM's , palladium/ Platinum - aint seen nothing yet from Munni Munni North - alien owns extensions to a deposit containing 2moz Pd (price is $2700/ oz +)
Interesting times ahead
A Ford - no slouch, Ex Financial Times Resource Editor
Called alien at 0.1p (now in the 10 bagger club)
https://www.youtube.com/watch?v=lLumteWgK90&t=5s
Iron ore huge potential
Silver - watch this space for 10,000g/t Ag silver results! chunks of silver
Project Generators dont sit still, the buy assets cheap on/sell develop and deliver $$$ to shareholders
Turner Pope broker report today confirmed £62m value on iron ore project (Feburary 2021), potential revaluation of this valuation as result of the initial drill results and as iron ore prices have moved up from $164/t to $190/t.
Based on Feb valuation the iron ore project is vlaued at 1.6-1.7p
Plus add value of Eliz hill silver (highest grade silver project in Aus), Donavon 2 (option value on Cu), mexico silver
This is a great result on virgin ground!
Sirius extension 120m @ 60% Fe (only known area)
More than 2- 3 new DSO zones discovered anything abouve 50-55% is DSO
over 70% more assays to come
Dont be misled WA companies are making huge profits by trucking ore 400km +
See Fenix market cap of $150m on 10mt
Pls do the sums DSO is $190/t today
10mt = $1.9b in metal value!
The exploration target is multiple times this size
Tenements surrounded by Rio and Gina Rienhart (han**** prospecting worth Billions)
Situation is real, Mints are short of metal - need physical silver and gold
Premiums being paid for Physical
UFO leveraged to Silver Price
https://www.kitco.com/news/2021-04-29/Mints-are-running-out-of-gold-not-enough-physical-silver-to-cover-paper-former-U-S-Mint-Director.html
Alien metals reports that Australian silver mine Elizabeth hill reported drill results of up to 25,000g/t Ag that’s super high grade or pure silver
New area 117km2 around the mine has over 20
targets ! Watch this space
see Turner Pope fund in 2020 raisings, £10's of millions in 2020
clients are institutions in the UK, Europe as well as HNW
previously their clients have made it big in copmanies like GGP with a cracking asset in Tier 1 jurisidction Australia
Instos are on the register but below 3% e£1m position would not require TR!
Goldman Sachs on Silver Rally to come. $UFO best exposure on LSE:AIM?
Reddit just kick started it
Just saw this on stockhead.com.au
Goldman Sachs, favours silver over gold as an investment in precious metals.
“I like to say that it’s a turbo-charged version of gold,” Currie says.
“That’s what silver has that gold doesn’t have: It goes into solar panels.”
“[But] in the current environment, given an already bullish silver outlook, Reddit-type investor campaigns could bring forward the forthcoming rally.”
This imminent rally could be helped along by booming industrial demand. Silver is used in solar cells (PV) as a conductor of heat and electricity.
From 2020 through 2030, the PV sector is expected to consume a cumulative 888 million ounces of silver — equivalent to an average of 81 million ounces per year.
Current annual global silver production is just under 1 billion ounces per year.