Member Info for welloilbeefooked

The times they are a changing - JP Morgan to get involved in bitcoin - https://www.cityam.com/jpmorgan-chief-says-we-will-have-to-be-involved-with-bitcoin/
Also the oldest American bank of all, BNY Mellon, to be custodians of clients bitcoin assets - https://www.wsj.com/articles/bitcoin-to-come-to-america-s-oldest-bank-bny-mellon-11613044810

Anyone got any idea why KR1 would have chosen to list in the USA on this most speculative of tiers in the market? Seems counter intuitive if they’re trying to establish themselves as a solid investment choice.
I think it’s been mentioned that Argo did similarly but I’m interested to find out the logic behind this.
GLA

Many thanks Dorfan, good to get a real perspective on what is imo the single most difficult risk to assess when making investments In the metals niche, the sovereign jurisdictio risk.

Rex, looking at ARB market cap of £450m against KR1 at £180m I’d say there’s plenty more to come with KR1.
Difficult to quantify the value proposition of both as traditional ebitda multipliers don’t exist as far as I can see. Anyone Care to hazard a guess at a reasonable forward mcap? Only need to look at Tesla as an example of markets going mental.

I've been here since January 2018, bought in just to have a toe in the world of digital currencies. I'd be interested in anyone's thoughts on how high this could go now? Obviously we can see roughly where we are in terms of NAV against market cap, but are there examples out there of companies with market caps at multiples of NAV? Are traditional valuation methods valid when trying to evaluate these businesses?
Thanks in advance

With the raft of poor results announced this week, I’m very happy to be invested here. Fully funded, Generating cash and profitable at low oil prices. Amazed the sp has held up in fact.
GLA

Hi NS, thanks for the detailed explanation. It's true we don't really know the full details of the processes or the agreements or for that matter the margins for Cu and Co, all to come out in the wash.
My broader point is that across all of our businesses we effectively "own" many hundreds of millions of tonnes of as yet unprocessed raw material which we paid relative peanuts for so very little included on balance sheet, presumably included in goodwill figures. The "true value" is a quantum leap up from this imo.

I think Leon mentioned a while back that most JV projects now and moving forward see us retaining a majority of the earnings ? Maybe someone else can confirm but the point is the wider market has not got a clue as to the true underlying value of this company.

I think about the 300 million tonnes of raw stock we'll be processing in Zambia in the coming years. Leon said it's 0.3% Cu so that's 900k tonnes. At today's price of around $8000 that's a revenue stream of $7.2 billion! Add in the Cobalt @ 0.05% gives another 150,000 tonnes @ todays price of nearly $40,000 gives another $6 billion .
JLP mcap is £160m today - we are sitting with the rights to a revenue stream of over $13 billion at todays prices, just from Zambia. At a 25% margin which is very conservative that's future Zambian earnings of $3.25 billion. Anyone else care to run that through a DCF calculator and come up with a valuation? Bet it's a lot more than £160m.
AIMHO

My 65,000 buy earlier has just popped up as a sell, games methinks

Thanks, just got in and screen froze after about 2 minutes

I'm still listening to the annoying pre webcast music SO PRESUMABLY IT'S TOMORROW?

We might even see LC finally start taking advantage of his options, now that he’s had his back pay...

Be interesting to see if LC and CB decide to spend some of their moolah taking up all those options....

I already used the contact form a couple of weeks ago to ask the question about uplisting KR1 at least to AIM but didn't get a response. If enough of us push for this they'll surely have to release some kind of response. Otherwise very happy with my lot here.

Northern Shark - Great shout for the RNS release today, called it perfectly.

Overall looks like we're definitely on our way but very strange chrome earnings being reported for H2 unless I'm mistaken.
The quarter 3 figures (July - Sept) in the RNS on 12th October had the 3 month earnings figure as £1,257,000 - we're now reporting July to December 6 month chrome earnings as £1,005,000

* sorry - typo, 10 years would be great but there's probably an extra zero required at least

It's also interesting to consider the inherent future earnings value of the metal sitting in the mountains of waste we now own the rights to process. Looking at copper in Zambia alone, 300m tonnes at around 0.5% Cu means 1.5m tonnes of copper waiting to be turned into revenue. Copper is around $8000 dollars at the moment and forecast to rise but even taking a long term average of $5000 that gives a future revenue stream of $7.5 billion, probably over less than 10 years - we don't know about margins yet but all we have to do is process it, the mining risk is zero.
Must make it a bit easier for Leon walking in to new negotiations with that kind of security underpinning his proposals.

Also need to factor in the massive amount of copper required for the EV charging station infrastructure to keep all these EV's going.