Sovereign Metals Share Discussion Threads

[888icb] 22/11/2024 09:40

I agree that in the long term we will make a lot of money and I would be happy to do so. However I don’t think we will be given that opportunity as Rio will want to fully own the project at the point when the main mine is going to be built and will need financing. This deposit will be very attractive to other majors and it would seem prudent for Rio with their 20% to take it out early based on the detailed knowledge they have now, which is not currently available to other bidders. The longer they leave the higher the bid will have to be.

[bigalan3] 22/11/2024 09:27

Excellent progress continues. I am sure if we stay in for the long term we will make a lot of money. We don't want too early a bid from RTZ.

[888icb] 22/11/2024 09:25

Up 5.84% in Australia and rising again here after yesterday’s strong performance. The share is making new all time highs on a regular basis as the project is fully validated by the pilot mine. Rio must be close to having the information they need (or already have it) to make a full bid before another major decides to have a go at securing this largest in the world Tier 1 deposit. In the meantime I am very happy to see the strong rise in the share price continue as this may well trigger the bid. We know Rio is very keen on this project and having gone to 19.9% they cannot buy any more without making a full bid.

[888icb] 21/11/2024 08:46

Another very positive RNS takes SVML Up 6.4% to a new high of 41.5p. This company continues to tick off its milestones on time and on budget.

[mart12345] 01/11/2024 06:57

Up circa 4 percent in Australia overnight, trading at equivalent of about 42.25p here. UK line got a bit of catching up to do!

[888icb] 30/10/2024 09:01

RNS Quarterly Update
The shares are up 11.97% in Australia on the back of the Quarterly Report. The report reminds us of the excellent progress this company continues to make.

[mart12345] 30/10/2024 07:41

Not massive volume, but most days it's seems about 500k-700k in Australia, so about double.

[c3479z] 30/10/2024 07:29

australian volume is 1.45m, is that unusual?

[mart12345] 30/10/2024 06:15

Currently up circa 12% in Australia, sterling equivalent price of 40p. Should be a nice day!

[bigalan3] 09/10/2024 07:28

Perhaps he thinks the unthinkable that RTZ will eventually come to an agreed take-over.

[888icb] 09/10/2024 07:26

A 400000 Director buy is a good vote of confidence taking his holding to 16.5 million.

[c3479z] 09/10/2024 06:22

rio expands lithium interests,
will it also expand graphite therefore? as well as titanium....

[bigalan3] 24/9/2024 06:35

Shows how important this supply of titanium and graphite is to the World.

[mart12345] 24/9/2024 06:23

A lot of very 'heavy hitters' attendees at the meeting that SVML participated in, including RIO CEO. That must have opened a few eyes widely on SVML's potential.

[c3479z] 23/9/2024 16:17

agree that it nearly all hangs on RTZ though others might also be interested given the scale of the resource and despite RTZ's large stake,
believe RTZ presently transports ilmenite across the Atlantic to Quebec to be processed, can't be efficient compared to the low cost potential production of rutile, though RTZ also has another project (ilmenite) at Richards Bay under consideration.

[888icb] 23/9/2024 15:32

Thank you for that detailed information.
I just listened to a podcast where Rick Rule is asked questions about various companies. A question was asked about SVML and Rick is a shareholder. The important take away for me is that it seems highly likely RIO who already have 19.9% will take it out sooner rather than latter. In that scenario the negatives about start up costs and cost overruns won’t be a problem for current shareholders. Indeed mining problems are very much reduced as they have already built a pilot mine which is producing to test the whole process.

[c3479z] 23/9/2024 13:34

888

positives from the MoS

enormous world class resource includes sought after rutile and good quality graphite.
close to infrastructure, rail runs nearby? would need upgrading?
west short of graphite and flakes most of which comes from China, EU has a 25% tariff on Chinese graphite to encourage western exploration
offtake agreements for the titanium/rutile with Teflon and Mitsui
friable close to the surface deposit - two methods of mining being trialed before decision /DFS
has 600 sq miles of deposit some high grade,
rutile scarce needs little processing compared with much more mined ilmenite being 95% pure already so RTZ or others might benefit from SCOPE , emissions and cost benefits.
RTZ collaboration on feasibility study with expert input and 20% shareholder
Company assures restitution of site to agricultural use once mined and engaged in partnerships with local small farmers to try to enhance their production and land.


Negatives
remote
Malawi a poor country with no mining heritage, mine could add 15% to their GDP so their gov't ought to be keen,
600m dollars to reach start-up, could be cost overruns.
pre production mining not for the faint-hearted
rtz already has another titanium project under consideration at RIchards Bay


my own observation- titanium and graphite markets presently soft
workforce available from LIlongwe which is not far away
?risk of substitution of titanium though it has the highest strength to weight ratio of any metal by carbon fibre, polyimide, PEEK in some applications?

[bigalan3] 23/9/2024 10:51

Apart from the prospects how long before Rtz bid?

[888icb] 23/9/2024 09:26

The MoS headline to the article suggests a more upbeat view than your summary. I don’t subscribe to the Daily Mail so I can’t see the article and wondered if you or some one else could post the part relating to SVML:
“ MIDAS SHARE TIPS: Give your portfolio a power boost with mineral miner Sovereign Metals”
The price action this morning suggests it was well received as SVML is Up 12.31% on volume of 300000 and Number 5 on the Leaderboard.

[c3479z] 22/9/2024 19:04

MoS
summary is approx 'potential for high reward for intrepid investor who understands the risk of mining projects in 9th poorest country in the world with no mining heritage and cost of 600m dollars to bring project on-stream: presence of 20% RTZ could be significant'

my fear is that titanium presently in a bit of a slump.

[blue2000] 21/9/2024 21:23

tipped by midas in the mail on sunday

[mart12345] 18/9/2024 06:05

Up 8 1/3 % at the moment in Australia. Equivalent of circa 33p/share here.

[888icb] 14/9/2024 17:43

Here is the final part of a recent analysis of SVML by Charles Archer:
“ Third, while SVML retains the operational competence to build the mine and is therefore itself the competitive tension with Rio Tinto, this pilot plant is very clearly the due diligence the major needs to see completed on the deposit before making an outright offer.

While Sovereign may protest that this is all simply to accelerate and improve their own DFS, Rio’s version of a DFS will be in a different class to the junior, and it will want to take the reins before we get to this stage.

My prediction is that Rio Tinto will make a full takeover offer within the next 12 months. I think it's worth finishing with a quote from legendary resource investor Rick Rule, in a recent interview with the company's Chief Commercial Officer:

'What you need to understand, is that ultimately, a deposit this size acquires strategic value. If it sells, it will sell at a premium to net present value because the users understand the critical importance of a deposit of this size and scale.'

The net present value, before any improvements, stands at a little over $1.6 billion”

If Rick Rule is right, which he usually is, SVML is at least a 5 bagger from its current price on a takeover.

[mart12345] 13/9/2024 07:38

Rio still keen then, topped up their stake again in small way given chance.

[mart12345] 12/9/2024 13:09

Since that large fall, volume dropped off a lot in Australia. Large weak seller I guess hitting price ( hopefully finished). Hopefully they'll regret that soon.