Capital Metals Share Discussion Threads

[cyberbub] 05/12/2023 13:35

Sphere, you might not be so exhausted if you didn't spend so long writing mammoth posts ;-)Bit of profit taking going on. No change to the medium/long term story.

[sphere25] 04/12/2023 15:43

Thank you for the posts.

It is exhausting enough to keep up with the normal routine at times, let alone take on board more. Just too many companies and too much information - all the information can become paralysis.

Ok so this is on the list, and IF they deliver on their own funding and the JV, then the market will go screaming north, but they HAVE to deliver. I'm in to try and ride any short term euphoria IF they deliver. Not touching it now until then.

If this didn't have the JV prospect, and I bought about 20 of these to hold long term, I would easily lose half my capital. The likelihood is I'd probably lose a hell of alot more. That said, there are a few that catch the eye and there are always moments of short term multi-bagger moments out there from time to time.

At the moment, the market doesn't give a hoot about any resource upgrade, new land licence, some off-take agreement to sell x amount, some possible funding partner, some DFS or BFS or other points of progress. All it gives a hoot about is the cash flow and funding.

Unless of course, there is confirmation of some game changing announcement like a JV with a monster player that funds everything and results in a nice clean amount of profit. In that instance, I think volume here will balloon to well over 50m and the party will be on.

I don't know if that is going to happen here, but I'm intrigued enough now to see if it does.

So good luck and let's hope there is delivery here.

All imo
DYOR

[roughandtumbleone] 03/12/2023 23:38

The fact the LB Group would insist as part of their JV due diligence that legal title sits with Capital (which it does now) there's no way you'd be quoting about getting the JV boxed off asap if the LB Group were unsure.The resource is significant to the LB Group and yet as intimated in Fridays RNS, the capacity to extend that resource is significant and as per the presentation I attached, the adjacent licences that Capital have first refusal on, also are clear to continue the mineralisation, so another tick for me for a JV partner to grow their target area for mining.Significant upside here imo.

[sellsell] 03/12/2023 00:19

The reality is, once the JV is announced we are no longer a 10m company. Its all about whether you think Greg is playing a game with shareholders. Based on his interviews and public RNS pronouncements I am with Greg. I bought 20ks worth on Friday once I read about the licences. For me, it's all about who holds legal title. Next week will be interesting, because it will show whether the Market believes in Greg

[roughandtumbleone] 01/12/2023 20:44

Sorry forgot the link to the presentationhttps://m.youtube.com/watch?v=X1PBMxLTH0k

[roughandtumbleone] 01/12/2023 20:43

It's going to be an interesting few days, weeks and months and one I'm really excited about.I've been harping on for months if they can get the licences back and this was confirmed previously but today was legal confirmation. If you listen to the presentation, the news on the JV is imo going to be company making and there aren't many projects that can accelerate to physical mining within 12 months whilst having your JV partner pay and within a calendar year start to generate a positive cash flow. Look at the MC and with only 275,573,998 shares in issue, the upside is huge hence the current discount NPV being 50-70pps. They've also stated today the significant resource upgrade to the project and as detailed in the attached presentation how the body of minerals extends into the adjacent licences that Capital have first refusal on. They raised money in June and July to fund the legal challenge and it was my understanding the Government that was also going to have to cover our cost due to their illegal withdrawal of the licences. I'm surprised this hasn't been released or confirmed yet as I'm sure it would have been passed at the court of appeal.So a JV confirmation and ideally an upfront payment to support Capitals working finances would be the utopia. A resource upgrade and knowledge within a year the company received 50 percent of profits paid monthly. It won't be at 5.5p then or more like 550p10,000 percent in the year is fine by me! Sent from my iPhone

[sellsell] 01/12/2023 15:32

Massive disconnect between market cap and company outlook

[roughandtumbleone] 01/12/2023 15:17

And yet the MC is less than 15mGBP!!!

[roughandtumbleone] 01/12/2023 15:16

So as it stands the company is valued at 155-235m with the existing resource and as stated today, the upside to grow that plus the adjacent licences where they know the heavy minerals sit, adds further to why the LB Group want to invest.Shareholders are simply looking at huge upside on the JV news and as and when the resource and additional licences are added, your looking at a company that will be transformed in less than 12 months from prospector to miner claiming 50 percent profit. This is going to be in the pounds and not a penny share IMOIn 2022, a third-party Preliminary Economic Assessment provided a Project NPV of US$155-235m based on existing resources, with further identified optimisation potential. We are committed to applying modern mining practices and bringing significant positive benefits to Sri Lanka and the local community. We expect over 300 direct new jobs to be created and over US$130m in direct government royalties and taxes to be paid

[ih_732280] 01/12/2023 14:18

Sphere25
Have a read on the LSE thread for CMET, it answers pretty much all of those questions, as well as the CMET website...

[sphere25] 01/12/2023 13:57

All good and well having a little trade in these high riskers but looking abit deeper.... what comes first, the funding for working capital or the big JV announcement?

From the results in September:

"We draw attention to note 2.4 in the financial statements, which indicates that the group and parent company will need to raise additional funding within twelve months from the date of approval of the financial statements in order to fund its ongoing working capital requirements. As outlined in note 7, the group's Industrial Mining Licenses ("IMLs") were suspended at the year end, and subsequently cancelled subject to appeal, which could materially alter the future financial position of the group and its ability to raise funds"

So they can raise funds now, standalone, or part of the JV?

These penny punts are such hard work. Traded it into the spike but keeping it on the watchlist for this possible JV announcement. Sometimes these tiddlers can get rather excitable.

Sorry, complete amateur hour here with these sorts. Mostly just quick in and out jobblers, but the JV looks interesting.

Roughandtumbleone
"Yes they’re looking at full mining funding and taking a 50 percent profit share"

So if they sort the working capital funding and the JV comes through, the market could get rather excitable here?

The near majority of these higher risk plays are all moving in relation to the lack of funding or risk of massive dilution. Clearly if someone comes in and funds it, it is likely to be transformational but I don't know the story here.

Wandering around too many shares. I will take a note of what is said and keep a watch.


All imo
DYOR

[seagreen] 01/12/2023 13:27

Added a smudge of sovs to my ISA no need to go to crazy if it goes to 50p in a year or two

If LB Group from China buys in ...it derisks the political risk

Who would ever have thought a Chines/Sri Lankan political derisk beauty LOL

[seagreen] 01/12/2023 13:07

Market should look at the grades and the battered mkt cap imho....as compared to ones that have done a bit of drilling we have a jorc resource LOL

Hang on for a year you may have a 25p to 40p if the largest producer of TIO2 pigments comes in

hxxps://capitalmetals.com/projects/eastern-minerals-project/
High grade minerals sands in Sri Lanka
JORC Resource – 17mt at 17.6% Total Heavy Minerals

The Project is located in the Eastern Province of Sri Lanka, approximately 220 km east of Colombo. The Project currently has a JORC Resource of 17.2Mt with an average grade of 17.6% Total Heavy Minerals ("THM"), making it one of the highest-grade deposits in the global peer group. Less than 10% of the Project area has been drilled to date and the current JORC Resource is from surface to a depth of 3m. Exploration work has shown continuation beyond 3m and also returned grades in excess of 26% THM. The Company expects to be able to upgrade the size of the resource following a drill programme scheduled for the 2nd half of 2022. On 29 March 2022, the Company announced the grant of a additional exploration license EL430 to further extend the Eastern Minerals Project 12 km to the north, including the Oluvil Port. EL430 contains areas prospective for further mineral sands resources, which have been identified for follow up drilling scheduled for the 2nd half of 2022.

[sellsell] 01/12/2023 12:51

Market still absorbing the news. Should be much higher now that the licences are formerly back in CMETs hand

[apfindley] 01/12/2023 12:51

Nice recovery here.Wish I'd bought some a month ago lol.

[roughandtumbleone] 01/12/2023 12:49

Yes they're looking at full mining funding and taking a 50 percent profit share.As stated in today's announcement, the size of the resource is likely to increase massively along with their right to now get the adjacent licences to their existing ones.Current discount NPV is 50-70pps and with a JV it's huge.

[roughandtumbleone] 01/12/2023 12:23

Great news and I'm sure the LB Group would have wanted this ratified ahead of the final JV terms...The paragraph below says it all! We are working towards execution of the Joint Venture with LB Group to fund the total capital expenditure for one of the highest-grade heavy mineral sands projects globally, with additional upside not yet included in the resource

[seagreen] 30/11/2023 12:35

RHT that is why they are in my ISA 8-)

[ih_732280] 30/11/2023 08:38

This is looking good

[roughandtumbleone] 30/11/2023 07:15

Seagreen Sit tight... I truly believe this will be one of those unloved stocks that becomes very well loved...That rerate to 70pps is my prediction and that's without the extra licences and resources already known to be below and beyond the current resource.LB... let's have the RNS please and the 10m upfront payment and full capex to mining cost.

[seagreen] 29/11/2023 16:00

One wonders if people realise the quality of grades.....

Locked mine away in am ISA 8-)

[ih_732280] 29/11/2023 12:28

Is that a cup and handle formation coming into play?

[seagreen] 29/11/2023 12:05

Extraordinarly low mkt cap of £12M vs EEE of over £50M (which I sadly missed for now)

Same product source of Titanium Oxide

Will be interesting to see what the market values it as when LB Group binding agreement is signed

Seems to be the potential forgotten darling after the Sri Lanka attempted theft..

These are massive Chinese corporations who are going tohopefully provide the finance for a 50% split of the net profits

hxxps://www.lomonbillions.global/
THE WORLD’S No.1 MANUFACTURER OF HIGH PERFORMANCE TITANIUM DIOXIDE PIGMENTS - INVESTING IN THE FUTURE

"This clears the path for the Company to work towards finalising an offtake and financing agreement with LB Group (002601:SHENZHEN; Market Cap: US$6.4 billion) further to the previously announced Memorandum of Understanding ("MoU") announced on 9 May 2023. "

Greg Martyr, Executive Chairman, commented:

"We are delighted that the Secretary has ordered the reissuance of the IMLs enabling us to now fast-track the development of the Project. This follows almost a year of legal and lobbying efforts to enable us to get the Project back on track.

The Eastern Minerals Project will be a first-of-a-kind for Sri Lanka, comprising modern mining practices, in-country value addition, knowledge and skills transfer, regional infrastructure improvements, and substantial foreign exchange income for the country.

While the interference with the IMLs has cost us the best part of a year, we have in that time secured an offtake MoU with the world's number one manufacturer of high-performance titanium dioxide pigments to fund the Project into production and seen continued improvements in the prices of our main products. This will benefit all stakeholders.

We expect to be extremely busy in re-engaging with LB Group, accelerating the satisfaction of the conditions required to meet the numerous outstanding mining applications as well as the reissued IMLs, commencing work on the Environmental Impact Assessment for the southern part of the Project in EL199, securing port access at Oluvil, and building out the team. It will be a pleasant change to be working on these value adding initiatives rather than fighting against the injustice we suffered at the hands of a few over the last 12 months.

We look forward to working with the GSMB, which has been given clear instructions from the Secretary and is now under the purview of President Ranil Wickremesinghe, as well as the Board of Investment, which has an increased role in the appraisal of and recommendation for the approval of mineral licences following the recently announced procedural changes.

I would like to thank our team, particularly in Sri Lanka, for their unstinting efforts towards securing this outcome. This is a good decision for Capital Metals and for Sri Lanka."