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CEO.CA members discuss high-risk penny stocks which can lose their entire value. Only risk what you can afford to lose.
@CriticalInvestorNo it isn't exactly a core position for a guy like him. Updated economics provide for a much larger NPV over capex, and after tax IRR is well over the 20% threshold at 1200 gold. The only thing is the capex isn't exactly small for a junior.
@staffpro@criticalInvestor@HRA-Coffin what are the chances or in your discussions with Ian is the goal here eventually to drill the existing resource to prove there is some high grade in there in order to two tier the project high grade first then low grade , long mine life and lower initial capex? - i'm assuming this would all have to be formally announced in an updated NR/PEA?
@CriticalInvestorImportant to me would be a. how much LCE can be recovered per annum per 1000l (or any unit) of brine, and b. how could the regulators verify this method without an independent report, as this is all in-house, proprietary etc
@CriticalInvestor@staffpro I didn't get the impression he saw possibilities in that direction, but he was looking to convert most Inferred into Indicated as they already did most drilling for that. I think he first wants to explore his targets before he thinks about formally updating economics.
@ggallant@CriticalInvestor unfortunately, @Goldenboy7123 has bet the farm on this one stock! He wants 2 news releases per day! I own shares in $xmg, but damn guys, this is the venture exchange... ie. Canadian Casino! Spread your bets!
@CriticalInvestorWhy keeps Glencore divesting zinc assets? After the Trevali assets, it looks like it will sell Masa Valverde to Emerita Resources $EMO (after it earned in 100% a year ago and did some drilling in 2016). This is a massive UG deposit of 100Mt @5.2%Zn with a lot of byproducts, my guess would be around 11% ZnEq
@MartinTurenne@criticalInvestor asks a good question re: Glencore selling zinc assets, and @hRA-Coffin provides a good answer. but why would Glencore choose to sell the assets at this particular point in time? Does this tell us anything about where Glencore thinks the zinc price is headed? If they thought the spot price was headed sustainably up from here, wouldn't they hold on to the assets longer? Bit of devil's advocate on my part, so don't get too mad at me, @theGalvanizer
@CriticalInvestor@TheGalvanizer yes looks like investors want Aznalcollar approval. I quoted from a 2007 report, it mentioned 100Mt with an average grade for all metals separately. The other report mentioned in here seems from 2000-2001. It also quotes a 50Mt resource at much lower grades from 1986. Will ask the company for details, and why Glencore wants to get rid of it. $EMO
@PamplonaTrader@CriticalInvestor, hmmm. They don't seem to be opposed to royalty deals. Red Kite also likes making big royalty deals on earlier stage projects but not streaming deals which tend to be closer to production when the economics of a project are better understood. Maybe mine operators don't view zinc as a by-product and more as a co-product and reluctant to sell a stream.
@CriticalInvestorFair point, but I would think Glencore is still cleaning up their balance sheet. And those royalty deals are done by others like Franco Nevada I think, is Glencore buying royalties themselves? Don't follow them closely.
@CriticalInvestorAren't streaming deals the most negative for mining companies, with the highest WACC on average? I think I read somewhere that streams (and royalties) are only good for the royalty/streaming companies (except when projects are so risky that they fall apart before commercial production of course)
@CriticalInvestorNot sure why IIROC wanted a TH for this, according to Jared these leases are worth a lot more than the other claims as they could develop their own O&G fields for example, but still not TH material to me
@CriticalInvestor@touquoy Atlantic is a very promising developer, but that SA author has no clue how to value a developer (since when do forward earnings mean anything in mining?), doesn't seem to know about the hedge and doesn't have any motivation for his price target (as usual). So I would look at the rising POG here as a cause for the rise. Just my $0.02
@tommyI had a modest idea over coffee this morning. No expectations, no disappointments. Thanks for considering!
CEO.CA is growing our web dev team and adding new data services to the site. To pay for it I am working to generate some new revenue. We're getting closer with a few potential sponsors. I found an unconventional story with a very successful backer and a historic zinc lead project, with a lot more to it. I was wondering if I could ask you guys for feedback on it? Non sugarcoated. A quick 15-20 min desktop review by the likes of @ocotilloredux@drilltracker@hra-coffin@robmcleod@pamplonatrader@benjamincox@Brandon@90bigpicture@tim_oliver@criticalinvestor@thegalvanizer etc would be super valuable for our readers, and me, to understand concerns and better gauge the potential. I would write a brief with links to presentations reports etc for you to scan. I'd also commit to donating $1000 in the ~zinc panel's name to a Canadian kids charity of your choice (thinking Boys and Girls Clubs or Breakfast Club of Canada) if a few of you (the more the better) share a few comments or concerns. Just your initial take. I don't mean to presume your opinions are worth $1000 combined. That's obviously too low. But maybe it could be the start of something valuable? No pressure at all. Please let me know your thoughts.
Have a great weekend!