Originally posted by ozblue
Here is something from the announcement on 3rd of December ..........
"Winmar advises that the Company and its advisors in the DRC and AHIC are in advanced negotiations with a number of parties for the supply of high-grade cobalt and copper ore to the Facility. The Company anticipates making an announcement in the short-term on the finalisation of a number of Ore Supply Agreements. "
That is 6 weeks ago, yet so far on the 'ore supply agreements' we have heard crickets chirping. If over 6 weeks is short term, then I need to redefine my definitions.
To me short term is in the next week or so ........
This begs the question of what is meant by the term " high-grade cobalt and copper ore" ? Many here seem to think 2%-3% or maybe even 4.5% if one constant ramp... sorry shareholder is to be believed.
Considering what constitutes average grades of cobalt in the DRC if the company can obtain 0.5% cobalt ore, they could claim "high-grade ore", as it would be higher than average.
As 6 weeks have now passed since the announcement of a short term finalisation of a NUMBER of Ore Supply Agreements, yet there are none announced, IMHO they are having difficulty finding all this cheap high grade ore.
Also IMHO there is no possibility of working out what type of price the shares will open at without knowing what grade of ore the company can use in the plant plus recoveries etc. It is just nonsense making up projected share prices without this type of information.
I guess it's to be expected you have a "negative" differing opinion to the company about short term and ore grades. If you think 0.5% is high grade from DRC then you are completely taking the p!ss. You might get away with 0.5% as high grade is Australia, not in DRC. Please spare us the BS about Glencore's grades again!!
Glencore mine for copper and definitely don't chase the cobalt rich veins like artisinal miners do
Besides there's no point announcing such information as ore supply arrangements when the prospectus is close to issue (refer to last company announcement about progress) when in fact the company is in suspension anyway. All of which I'm sure you know very well!! I do understand your frustration though
As far as splitting hairs about terminology of what "short term" is? What you call short is irrelevant, when they announce supply contracts we will know what's been arranged. Besides this has all been discussed at length and I believe the full form prospectus will encompass all the finer details such as ore supply and quality. All in all the timeline is secondary as long as they achieve re-compliance and start production with the volume/grade of ore the company seeks for early production purposes.
We must remember that under the terms of acquisitions WFE is permitted to perform due diligence. That may include sourcing and testing the quality of the ore from proposed suppliers to ensure it meets the companies expectations. Due diligence can also be testing the processing plant equipment and functionality with actual ore, such as the ore from these proposed suppliers
They have had plenty of time to source the right high grade ore and 2-3% is not so uncommon in DRC from artisinal miners. The Chinese and Indians have been getting that quality for quite some time and DRC is quite a big place for plenty of these artisinal miner types!