Or read my many (often too long posts) from before
a short summary is this.
The western world has run out of tungsten because china dumped the market in the 90'sand killed off all western mines. tungsten is no 4 on world critical metals
85% is from China, 7% from Vietnam and 3-4% from Russia. - 95% from commie countries - who can screw with the west.
But even China is now running low on its supplies and needs most its tungsten for its own industry. It cant dump the market any more.
China also screwing with tungsten in the us/china trade war. and limiting exports
Tungsten is used in cutting tools for car plane industry high-tech and medical as its so solid, and conducts well, also oil and gas. But most important you need tungsten to run a military- its critical for navy airforce and army.
So China (with russia and viet help) has the US and western countries militaries by the short and curlies.(so they think)
senator McCain first saw this and made a rule in 2018 that west cant buy commie tungsten in case of conflict. It must open its own production. Trump continued that policy and so is Biden .
There are no mines in north America at all
In all the west there's a few crappy low grade small mines in -bolivia/austria/Spain Portugal and some in Ruwanda. thats it.
Korea has one big mine but that supply is all taken,.So he Only reliable place for tungsten for the west is Australia. By far -head and shoulders above the rest in OZ for quality is the dolphin mine. (KIS)- best in the world quality.
this is military grade tungsten for all western militaries.the mine originally started in 1st world war for that very reason to supply the brit empoire and the allies for artillery heads and armour.
Its needed again now.US told Oz to open it at any cost.=- and it will be subsidized.
It so happened that two Aussies who had just built from scratch and sold off a coal company for 1 billion, saw this too and got involved in 2005
The tungsten price was high pre covid and going higher.They started rehabilitating the mine (they still own 45% of the shares.) Dan Elphinstone tasi's richest Billionaire is also involved.
After 6 years preparation KIS now have a DFS, and a current NPV of 130 mill- a mine plan, all permits issued, offtake agreements in place, and just need the funding of 72 mill - to build the plant and mine and then 8 months to build and be in production. it very derisked. . when they produce they should make around 30 mill++ profit a year- more if tungsten porice goes up as it strongly expected.
The LOM is now only 14 years- but thats just from around the existing mine -they own all the land around the mine and to the port if they drillthere more they will most probably find a lot more. for longer mine life and higher NPV. also the tungsten quality gets better as they mine deeper so they can go deeper to they haven't drilled there yet. IMO This mine has miles to go.
As for funding -Oz govt is now coming in to help as western world needs this one open and US military and govt has told them to do it. This mine will open., -thats a given. the US and western militarist need it open ASAP.
OZ Govt will probably give them about 30 mill in grants and loans I expect, and they should then easily get a commercial bank loan for the rest and maybe with 1 more small equity raise at around 30-35 cents.
But if any issues oz govt will subside or US military will. - you understand. this mine is CRITICAL TO US MILITARY, NATO SEATO forces etc.
As production starts the 30 million AUD PA or more profits on a longer mine life can go to say a pe of 8-10x and so the market cap can get to 250 mill.
After all financing and conversion of options etc-fully diluted and in production there should be around 380 Million shares out.
AUD 250 mill market cap divided by 380 mill shares = approx 65 cents a share.
if the Tungsten price rises post covid to its old highs or more -which is extremely likely -then that SP should go higher.
IMO this share is going to 50 cents ++- almost guaranteed with US + OZ govt backing. maybe significantly higher?
thats about sums it up I guess.
good luck all holders.
KIS Price at posting:
24.5¢ Sentiment: Buy Disclosure: Held
