Pembridge Resources Share Discussion Threads

[jamdan1] 09/7/2019 18:29

Just want this to relist now

[bazzerhino] 09/7/2019 18:25

Talks of 50p on lse

[soulsauce] 09/7/2019 17:19

Values our 33% at about 30 to 35p doesn't it?

[encarter] 09/7/2019 17:01

Summat to get us teeth into.https://www.brandonhillcapital.com/media/77932/pembridge_resources_initiation_report.final.pdf

[soulsauce] 28/6/2019 10:32

Anybody at the Agm?

[uknighted] 16/6/2019 19:35

Pembridge Resources

Investors are keeping an eye on mining firm Pembridge Resources as the shares could start trading again soon following a $20million (£15million) acquisition of the Minto copper, gold and silver mine in the Yukon territory, Canada.

Shares in Pembridge Resources have been suspended since 2018, but well-placed City sources said they could start trading again on the main market next month.

That’s because Pembridge Resources announced a ‘definitive agreement’ for the acquisition of the Minto mine and a $10million finance deal from New York-based investors Copper Holdings and Cedro Holdings.

The Minto mine is expected to restart production later this year.

[vivgav] 16/6/2019 16:54

Scroll down

[soulsauce] 14/6/2019 18:28

Mining maven podcast out. Link on lse.

[soulsauce] 12/6/2019 23:12

Thanks for that, looks like we could be back listed earlyish next month.

[uknighted] 12/6/2019 22:16

The Proactive article

It looks like it’s going to be an interesting few months for Pembridge Resources PLC (LON:PERE).

After protracted negotiations the company has finally managed to acquire the Minto copper mine in central Yukon from Capstone Mining (TSE:CS) for US$20mln in deferred staged payments.


The deal puts Pembridge firmly in the ranks of London-listed copper producers. The Minto copper mine is a fully permitted copper mine that’s been in production since 2007, but which is currently on care and maintenance. This acquisition sets Pembridge on its stated path to becoming a mid-tier copper mining company with a goal to restart production during Q4 of 2019.

Minto potentially the first of several acquisitions

According to the vision of David Linsley, Pembridge’s chief executive officer, this acquisition is the first of several targets that will be considered as the company takes advantage of cheaper asset prices in the current weaker mining markets.

To support Pembridge’s acquisition strategy, potential targets would need to be in a cash (or near cash) generative position.

The Minto copper mine fits this criteria perfectly.

Financed to production

The financing package that Pembridge put together to support the purchase and restart involved a US$10mln facility provided by two US institutions, a private equity group and an asset management company. The funds raised are sufficient to ensure that Minto will return to production before the end of 2019.

“Minto is in excellent operational condition,” explains Linsley.

“The mine has been on care and maintenance since October 2018, and our team is already working hard at the site .

“One important part of Pembridge’s operational strategy will be to concentrate on copper production underground, to target higher returns, higher margins and better recoveries from the sulphide material.”

Pembridge’s official literature speaks of targeting an annual production rate of 18,000 tonnes of copper in concentrate, with gold and silver as by-products.

That should provide Pembridge with a significant revenue stream to potentially act as a platform for future growth.

And that growth is likely to come in various ways. There’s Minto itself, where Linsley expects the team to be able to increase the mine life significantly with targeted exploration.

“Minto has tremendous exploration potential,” he says. “It’s not just production. We know where to spend our exploration dollars too.”

One reason for that confidence is the skilled background that Pembridge’s own people bring to the project. But another is that Minto has already had over US$350mln invested into it, so there is a lot of data available to work off.

Outside of Minto, Pembridge’s growth potential could entail future transactions. How these will shape up remains to be seen, but Linsley emphasises that there’s nothing close to completion at the moment.

“We have been screening projects for the last two years,” he says.

“At the moment, there are a lot of assets up for sale, so one has to put the time in to find quality assets.”

But they are out there, and with the funding environment for mining likely to be tough for some time to come, asking prices will continue to fall . That’s the real opportunity that Pembridge presents. Supported by cash flow from Minto the company can bide its time and hold out for the best deal or deals at the right prices.

“We’re not just going to do something for the sake of it,” says Linsley.

Copper outlook favourable

Even so, he’s casting his net fairly wide.

“We’d look at North and South America, and Europe,” he says.

And is copper the favourite commodity?

Linsley has no doubt.

“I think copper is absolutely where you want to be,” he says.

“All the indications are there on the supply side. I think copper’s only going one way. I wouldn’t underestimate the demand from electric vehicles, but even without EV the growth from India and China is huge. They need copper everywhere. It’s not rocket science to see that there’s a macro imbalance.”

Timely then that Pembridge is now on the cusp of copper production. What will be really interesting will be to see what it does next.

[vivgav] 12/6/2019 20:13

see Proactive

[soulsauce] 09/6/2019 22:44

Yes they still have to gain my trust back.

[escapetohome] 09/6/2019 22:38

Im not averaging down.

Im still upset about the crafty raising to the institutions at a discount, stabbing us in the back.

Thats business for you.

[soulsauce] 09/6/2019 22:26

My average is about 3p or 30p in new money. I won't be averaging down but might hold for a while to see where it goes.

[bazzerhino] 09/6/2019 18:32

Is anyone averaging down when this relists? What are your averages?

[escapetohome] 09/6/2019 14:52

Yup , i withdraw all my previous comment.

It took a very very long time, but at least we have some thing now.

[soulsauce] 09/6/2019 14:03

It does seem, as long as it has taken, they have a pretty good deal. So I cautiously eat my words as it stands.
Hope I am right then may be we can get back to a decent valuation and we may actually see our holdings in profit 😊

[uknighted] 09/6/2019 13:39

Thanks Vivgav, this is the article.

Minto Mine has a long-term future
Pembridge Resources is here for the long haul as the new owner of the Minto Mine, and it’s already on the move, says company president Peter Bojtos.

By Chuck Tobin on June 7
Pembridge Resources is here for the long haul as the new owner of the Minto Mine, and it’s already on the move, says company president Peter Bojtos.

Bojtos told the Star Thursday in Whitehorse that part of the crew was underground yesterday putting batteries back into the heavy equipment so it can be moved to the surface for evaluation and maintenance.

They’ll be bringing in underground drillers and blasters to continue on where Capstone Mining left off when they put the mine into care and maintenance last October, he said.

The company president said they likely won’t recommence blasting and bringing ore to the surface until well into August. There are no plans to restart the mill until the fourth quarter of this year.

“The mill will start up, but it’s not expected to be running at its full capacity all day, every day until well into 2020,” he said.

Once they hit the mill’s maximum capacity of process 4,000 tonnes per day, Bojtos said, they plan to stay there.

“We believe our plan for the mine can sustain this, with continuing operations for a very long period of time,” he said.

“What I’m trying to say here is we see a future here; we see a strong future.”

Capstone and Pembridge closed the purchase Monday for $20 million.

Pembridge is a publicly traded company on the London Stock Exchange.

It entered into a purchase agreement in early 2018 for $37.5 million, but could not raise the financing to close the deal. It cited tough market conditions, though it continued to pursue the purchase.

The new arrangement provides for three cash payments which are tied to success in production.

The first payment of $5 million, for instance, is not due until 60 days after commercial production begins again.

In its announcement Tuesday, Pembridge committed to having the Minto Mine back in commercial production by the fourth quarter of this year.

The company president didn’t offer any specific numbers in terms of how many jobs will be created, but did suggest it would be right around the 150 Capstone employed at the end of its operations.

The Minto Mine, he emphasized, will be an underground mine, with no plans for any open pit mining that was the bread and butter of the operation ever since the mine went into production in 2007.

Bojtos said Pembridge is confident the underground potential is bountiful.

Lead geologist Nikolett Kovacs – a local woman – is very knowledgeable about the copper belt that runs through the area, and she did work with Capstone at Minto for a time, he pointed out.

In a few weeks, Bojtos said, they’ll be setting up an office in Whitehorse for their administration and human resources staff.

“So if people are looking for a job, they will know where to go.”

Pembridge wants to move to the point where the company is not relying on contract workers, but rather has its own staff for all phases of the operation, he said.

Bojtos said the company wants to establish its own workforce right from the underground miners through to representatives who are on the phone selling their product to smelters overseas.

And the concentrate they’ll be producing will be of high quality, some of the highest quality in the world because of its purity, he explained.

“We have a very clear vision of where we want to go,” Bojtos said.

“We believe in the potential for a long life, and we have the skills to do it.”

He said he’s looking forward to continuing and building upon the relationship the Minto Mine has had with the Selkirk First Nation, on whose settlement land the mine sits.

The relationship with the First Nation and its development corporation is very important, he insisted.

Bojtos said Pembridge will be trucking its concentrate to the Port of Skagway in the same way Capstone did: using a barge in the ice-free months to move it across the Yukon River at Minto Landing and an ice bridge in the winter.

[soulsauce] 09/6/2019 13:27

Good find and a nice read vivgav.

[vivgav] 09/6/2019 13:18

See

Whitehorsestar.com