Australia's largest stock trading and investment forum Australia's #1 stock forum

STA

Click for more information

0.00%

9.5¢ strandline resources limited

Ann: Sixth Shipment of HMC Completed at Coburn Project, page-12

First 12 Last

Share
Profile

Follow
westernoz

198 Posts.

16

01/06/23

10:36

Post #: 68073899
Share

Originally posted by 2ic: ↑

Coburn is really struggling here, well beyond the time they should have hit nameplate in the wet plant at minimum. DFS had them starting in best grade area as you expect, with first two years producing 250ktpa HMC (note add 5% HMC to sum of VHM products). This chart was 2019 DFS, which is ~2ktpa lower than 2020 DFS update.

So after 6 months after declaring commercial production (an official term in finance contracts when a company says they are at effective ramped up production) mid Nov, they have averaged <10kt per month HMC at $10M per month revenue (pre royalties I assume). Should be running at >20kt per month HMC and $17M per month revenue, not withstanding that min sand prices are currently ~30% higher than assumed 2020 DFS Update (ie should be making ~$22M per month, although that assumes the dry plant is producing final product by now).

Simply and horribly under budget this far on with unresolved issues, and I'm not sure they have ever told us what the quality of HMC or recoveries of VHM is? Can't keep going like this for ever obviously...

Below chart from 2020 DFS Update forecast $200M first 12 months

Expand

@2ic you’ve always been a bit cynical about STA though haven’t you…

STA Price at posting: 31.0¢ Sentiment: None Disclosure: Held
5 Upvote

0 Great analysis

Reply

Top Stories

OPL

Opyl forms JV with UK and US consortium to bring products to the world

HXL

Hexima shares rise 66% on proposed acquisition of AI player Real Thing Entertainment

PEC

Perpetual sniffs TREOs beyond 4000ppm at Raptor play in Brazil

MM1

Geochemical work at Newington picks up gold and copper anomalies for Midas

BGL

Bellevue aims for 45% production increase by FY 2028, announces $150M placement

Acquisitions roundup: European Lithium, Diatreme Resources and SRJ Technologies

TRP

Tissue Repairs soars nearly 32% on TGA approval for wound healing gel

AAI

NYSE-listed Alcoa Corp joins ASX through key JV acquisition

Capital raisings wrap: Brainchip, Ovanti, Lake and VHM

Quarterly & half yearly reports: Drives Newmont up, Ampol flat, while Fortescue plunges 2.6%

There are more pages in this discussion • 44 more messages in this thread...

First 12 Last

Add STA (ASX) to my watchlist