|I would obviously prefer as little dilution as possible. Anglo's last purchases were a bargain.
As you say, Teck has its own problems. Hopefully they won't need to sell their NUS stake. It must be peanuts anyway.|
|You may be right about getting stuff a bit cheaper, but I'm not worried even if NUS do need some more cash. Anglo recently put some more money in via a placement, and I would guess they will back it all the way. They seem to believe in exploration and backing juniors unlike e.g. BHP and RIO.
The same goes for Teck too, assuming they can sort out their own problems.|
|Nautilus is my second PP share comp entry (Houndstooth2). I should have sold on the way down, but I thought the cash would support it. Strangely, I think the credit crunch helps NUS. They aren't mining, so don't care what happens today. It puts pressure on suppliers (1)they need the business (2)they want to get a toehold on this "new world" (3)competitors can't raise cash.
I think they must be close to financing everything now. Mining tool ($50m), Riser ($116m), Total cash $266m. If they can get a good deal on the ship (especially in the first, most risky year), and keep running costs to a minimum (minimal exploration), perhaps they can afford some simple processing. I don't think processing should be too expensive. It's soft, so easy to crush, just pour acid over it, and precipitate it! (OK, I'm sure it's not that easy!). Because the ore is so rich, the plant can be quite small=lower cap costs.|
|I got out ages ago fortunately. Still in Nautilus.|
|No I didn't. I hope you weren't burnt. I don't hold, but kept an eye on it because of my interest (and holding) in NUS.
I still think a merger would have been better for NPM. Undersea mining is an expensive business.|
|Did you not see the latest RNS? Neptune is de-listing and going private.|
|What's the possibility of a merger of NUS and NPM? No cash implications. Some staff from NPM can keep their jobs, and NUS gets more acreage for peanuts.
No sane investor would put cash into NPM. Much better to talk to NUS and finance them sufficiently to get to production. For example £10m might buy you 10% of NUS, worth £20m in cash|
|So, the Final Results are out today. The company has enough cash until mid-2009 and is confident that funding beyond that point will be found somehow.
Standard optimistic prattle perhaps? Or maybe not. Personally I take some comfort from the fact that Newmont has today waded into the Solomons Gold/Guadalcanal bog in a big way. That is just about the most difficult and uncertain gold prospect on the planet, so Neptune might seem almost blue-chip in comparison.|
|It would add enormously to the asset base. I think it would have happened by now though if it was going to.|
I agree NUS could take over NPM. However, what's the point (except providing NPM holders with some form of exit). NUS have far too much to area develop anyway. Assuming it works to plan, the company will rapidly need to spend money to accelerate the development.
The one benefit it would provide would be further country diversification.|
|So ... Thought arises once more in the bleak desert that is the NPM board.
Ignoring the warrants, Neptune now has a market cap of about $20m. Nautilus, on the other hand has well over $200m in cash. Surely that must be tempting, and spending that amount would hardly affect Nautilus' plans, given that they have now arranged a non capital-intensive leasing arrangement for the mining ship.
I doubt the various competition authorities would even notice, much less object.|
|Hmm, good job I don't look at the price of this very often. Ouch!
The warrants are now trading at more than the shares too! Bizarre.|
|Posts on this bb are like buses you wait and wait then three come along all at once.
|Well I think the changed environment's got a lot to do with it. Not fully financed jam in 2010 at the earliest stories are not what the market's after this year, so I've shut up. Still hold the shares (well mainly warrants) though.
New prospecting licences - well IF it all comes good then the more prospective ring-of-fire ground then the more deposits there will be to exploit. So long as the chewing can keep up with the biting off.
But IMHO the more interesting news is
a) Project Trident - where information seems on the vague side, especially on the little matter of who is paying who how much to undertake the task. A mid-2008 start approacheth though.
b) Scoping study. Technip's favoured methodology looks a little different to what was expected with a riser pipe, perhaps alternatives turned out impractical at the depths and in swell. Still if that's the outcome, better to change your mind than be dogged about it. It remains to work up in detail and to identify 16.2Mtonnes and finance ~$500m.
Here's the grabber referred to.
And the seafloor vehicle.|
First post for nearly 6 months!|
I don't watch this one much (since I don't hold). I hadn't realised how much it had fallen. I know it's only 20%, but for some reason I thought it would stick at about 35p. I guess the boredom factor, plus some needing to sell to pay for losses elsewhere, might explain it.
Best Wishes for 2008.
|AGM comments to be found here
|For interest only
Neptune Minerals commissions scoping study on seafloor massive sulphide mining
LONDON (Thomson Financial) - Neptune Minerals PLC said it has commissioned a
conceptual engineering scoping study for technologies that may be used for the
commercial development of seafloor massive sulphide (SMS) deposits.
The study will be undertaken jointly by marine engineering specialists, The
Technip Group of Companies, and deep-water dredging specialists, Royal Boskalis
Westminster NV, it said.
The SMS mining options will encompass existing marine equipment and
technologies, which will be assessed for validity, operational reliability,
capacity and environmental issues, the SMS deposits explorer and developer said.
The scoping study report will be completed in the first quarter of 2008 and
results will be evaluated with the aim of making recommendations for pilot
testing and for a follow-on mining pre-feasibility study, Neptune Minerals
|huge volume today 3.8m shares will be interesting to see what that was all about|
|One thing I have wondered about is how deep is it possible to drill into the sea floor. Well, the answer would seem to be "quite deep". Check out the extensive documentation at the site below:
|Hello dcomd, sorry I didn't respond earlier.
Are Neptune just doing enough to keep their acreage, and leting Nautilus make all the mistakes?
Well yes to some extent they are, and why not? I don't think that's all there is to it though. They have now stated an intention to move to trial mining by 2010, which in the scheme of things is not that far off. There is also the plan to setup a permanent exploration "station" over the NZ projects.
One viewpoint I take on it is this:
Nautilus is entrepreneurial, and will move mountains to actually get to the stage of getting the stuff off the seabed and selling it. The markets will love this (as we have seen) provided they keep achieving.
Neptune is more academically orientated, and its value may perhaps be more in the addressing of the more marginal areas, or in expanding the understanding of non-SMS type deposits e.g. Conical Seamount et al. The markets will mostly view this with a yawn, but long-term the scope for value creation is large.
Since the whole thing is as Rapier calls it "binary" I like both approaches. Indeed you might even say they are complementary.|
|Have RAB actually bought some of Neptune. They aren't listed on Neptine's website. I think the above Minesite article is pretty shoddy. Neptune have Newmont on board, but that's all.
Any views on merits of Nautilus V Neptune. Nautilus appear far more advanced, and have raised far more money. Are Neptune just doing enough to keep their acreage, and leting Nautilus make all the mistakes?|
|So now we know what the timescale to mining is. "Trial mining" by 2010. Good enough for me, we should know whether Nautilus has cracked it by then.|
|NPM seems to be making good progress and still has £5m left|
|A bit vague but positive nonetheless.
Funding from industry? I hope so ...|