I received some additional questions from the ceo.ca crowd after my initial write-up on $ASND here: ceo.ca/@Pete/asnd-whats-not-to-like . Look out for the company's first monthly report of 2018 this or next week to confirm their stated production guidance.
1) Main Shareholders: CQS and Vertex are long-term supporters having participated in both financings and still holding their original positions for the most part. MM Cap recently built up their position in the market and Mr. Laciak recently increased his position, which we feel indicates his long-term intentions.
2) Exploration upside: The Company has been very active on the exploration front with an extensive 33,200-meter program carried out in 2017 and an additional 40,000 meters of work planned for 2018. As Buncic explains, exploration work to-date has demonstrated the potential for greater tonnage at higher grades, and we look forward to providing a resource update in the second quarter. The 40,000 meters planned for 2018 will focus on definition drilling for further resource conversion and on exploration drilling of regional targets given there are many historical targets that warrant follow on our 11,000 hectare land package. More here: http://s21.q4cdn.com/765868678/files/doc_presentations/2017/June/Ascendant_Exploration-June-2017.pdf
3) LOM and head grade: A major focus for us in 2018 will be increasing head grade to the mill which will ultimately drive our value per tonne higher, improving our overall contribution margin. We expect our ore grades to improve in 2018 as production shifts toward higher grade areas within the mine and with the addition of conventional mining activities within smaller but higher-grade ore zones. This has already begun in January. The updated NI 43-101 technical report we plan to announce in Q2 2018, will address the imoportant question of the projected min elife at El Mochito. Essentially the resource has been relatively continuous along several intersecting faults which makes exploration at El Mochito an easier prospect. There was very limited exploration work undertaken by previous owners in 5+ years which we had viewed as a great opportunity when we acquired the mine.
4) M&A: As well as organic growth, we are also looking at other opportunities in Honduras. Certainly the market expects us to continue down our base metals and silver path. My preference is to find additional producing assets. We are scouring the field but to say what's next would be difficult. Instead I would like to say that 3-4 years from now I would like Ascendant to be a company with several operating mines, with an advanced stage and an early stage exploration project.We will try and create a company that has got a pipeline of producing and development assets.
5) Cash flow vs. Sustaining capital:
Forecast 2018:
Direct Operating Costs $70 - $80 / tonne (already down -30% YoY)
Capital Expenditure $16 - $18 million
*Capital expenditures include development costs, the balance of mobile equipment purchases as well as exploration expenditure
6) Read @octiloredux comments & modules - courtesy of @TheGalvaniser
https://ceo.ca/@ocotilloredux/zinc-mining-ramblings-the-summary (Modules in the comments)
One for free to get you hooked; 01/02/18 "They are running one year ahead of where I expected them to be so perhaps Nrystar did not leave the place as a total wreck after all. Good show gents. Spiking zinc prices almost all accrue to the miner and not the smelter."
Disclaimer: Info presented above is a mixture of information available on the company website, ceo.ca (nr.6), recent company interviews and IR mail communications. DYODD
