Sovereign’s share price has been rising happily for 2 full years now, and each cap raise has given management even more funds to employ the locals to drill more holes.
The more holes they dig the more they continue to add exponential value to this company.
I’m looking forward to the day they start drilling/exploring their gold tenements too, as the locals are pulling gold out using rudimentary methods and still finding gold….Just what could be in store when this team get down to their proven skills…..finding and developing even more new mineral resources. Malawi sure is endowed with fine minerals.
It also looks like Ian Middlemas has the Midas touch, he turns money invested with him into gold wherever he turns, so I have no fear there.
I’m still a happy holder since the single digits days and have no reason to bail with the price of Rutile heading nth and heading into what the company call 'The perfect rutile supply storm".
The prospect of them progressing Graphite and getting ready to apply for a mining licence for their massive world class graphite project (as indicated by Julian Stevens in the last investor interview) also excites me going forward. I found the following demand forecast for graphite, this bodes very well for SVM’s Graphite assets in the future:
“Graphite market news - IEA report - Demand for graphite alone will grow 25x by 2040”
From SVM Malingunde PFS
“Total operating costs of approximately US$323 per tonne concentrate (FOB Nacala Port) – at the very bottom of the graphite supply cost curve and the lowest of any reported ASX-listed peer company.
· Total capital cost of US$49 million, for production of ~52,000 tonnes of concentrate per annum – lowest capital intensity of all peers.
· Very rare combination of low capital and operating costs at a realistic scale of production.
· Payback of under 3 years using conservative graphite pricing assumptions.
· Very low mining costs with the soft saprolite being free-dig with a low strip ratio of 1:1.
· Simple process flow sheet with no primary crush or grind, leading to low processing costs and lower capital requirements. Simple plant design uses “off the shelf equipment” allowing rapid and cost effective initial construction whilst allowing for future expansion options.
· High quality product with excellent concentrate grades and a very large proportion in the SuperJumbo and Jumbo categories.
· Project generates significant cash margins even in severe downside global graphite price scenarios.”
“The maiden Mineral Resource Estimate (MRE) for the Malingunde deposit confirms it as world’s largest reported saprolite-hosted graphite resource. The total MRE is 65.1Mt @ 7.1% TGC at a 4% TGC lower cut-off grade and comprises”
On another companies thread that I hold a position in, I posted a post about investing in "Trophy Assets" with "great management" as a pillars of my investment decisions. This post ended up the third highest liked post on HC a few days ago.
I would class SVM in similar category….I.E a company that you come across every couple of years.
Buffet said “just because you can trade in and out within seconds or days doesn’t mean you should”, he also said “would you hold your invested company, if you knew the stock market wasn’t going to open on Monday, but stay closed for the next two years before reopening”??
My investing time frame is minimum two years or more, and both SVM and this other company mentioned I could say a resounding YES to the above question.
None of the above is investing advice as I’m not qualified to, but these strategies have been good for me and I’m currently looking for my next “Trophy Asset”
Have a nice day and successful investing everybody
DYOR NIA etc
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Last
71.5¢ |
Change
-0.015(2.05%) |
Mkt cap ! $428.9M |
Open | High | Low | Value | Volume |
71.0¢ | 71.5¢ | 69.5¢ | $249.6K | 352.3K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 70276 | 71.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
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72.0¢ | 20000 | 1 |
View Market Depth
No. | Vol. | Price($) |
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1 | 70276 | 0.710 |
3 | 3910 | 0.700 |
3 | 26911 | 0.695 |
2 | 11488 | 0.690 |
1 | 5000 | 0.685 |
Price($) | Vol. | No. |
---|---|---|
0.720 | 20000 | 1 |
0.725 | 51148 | 3 |
0.730 | 20000 | 1 |
0.740 | 7150 | 1 |
0.750 | 5850 | 2 |
Last trade - 16.10pm 13/11/2024 (20 minute delay) ? |
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