I've been buying for the river sand potential. Don't get me...

I've been buying for the river sand potential. Don't get me wrong, I like the gold project but river sand operation is extremely low capex and near term cash flows that can substantially re-rate the company.

I'm not sure many understand the demand on River Sand and market potential. Singapore and across Asia, River Sand is under intense demand in the construction industry. Right now, the construction industry is entirely dependent on river sourced aggregate and there is no substitute.

Singapore does not have suitable sand locally and imports all it's sand for construction purposes. Typically, the sand was imported from Cambodia and Vietnam. However, excessive sand mining is rapidly destroying the Mekong delta ecosystem. The Singaporean government has come under substantial pressure to identify environmentally friendly sources. To this end, they have begun importing sand from Australia.




In terms of potential, river sand typically sells for between $70-80 per tonne in Australia whether washed or coarse. Wholesale would most likely be around $40-50 per tonne. With a mining license that permits 500kt per annum, we're looking at potential annual revenue of $20m from a very low capex and cost operation. Securing port capacity is of course essential for the export market which does command a premium.

The other element that convinces me that offtake discussions are likely to produce binding results is that the company management and major holding has significant Singaporean-Chinese presence. NEDs Qiu Derong, Judy Li and Chenchong Zhou.

Specifically referring to industrialist Qiu Derong who has significant experience in the architecture, construction and real estate industries. Just the person you need to secure river sand offtakes in the Asian market, particularly Singapore. He is also a major stakeholder in the company and is interested in seeing the company create tangible value for all shareholders alike.

Australia is able to provide the sand aggregate demands of Asia in an environmentally friendly manner.





Asia’s hunger for sand is harmful to farming and the environment
https://www.economist.com/asia/2020/01/18/asias-hunger-for-sand-is-harmful-to-farming-and-the-environment

Asia’s new gold: Sand mining threatens life on the Mekong

It’s an essential component of glass, asphalt and concrete. Sand is the stuff of which Asia’s growing megacities are made. In Cambodia, sand is being dredged from the Mekong River at an alarming rate, with disastrous results for local residents.

Video: https://www.dw.com/en/asias-new-gold-sand-mining-threatens-life-on-the-mekong/av-50833982

Shifting sands: Concrete-hungry Singapore orders a million tonnes of aggregate from Australia
Ever busy with new infrastructure but facing constraints in sourcing sand for aggregate, Singapore for the first time has turned to Western Australia.

https://www.globalconstructionreview.com/news/shifting-sands-concrete-hungry-singapore-orders-mi/