Fair timelines on the performance rights, scoping and feasibility studies are a no brainer while FID might be a bit tight on final permits and approvals.
Response on this thread to ILU's Sierra rutile disaster perfectly highlights how a situation is viewed as good or bad depending on ones bias. Holders and SVM bulls saw it as straight p good news, 150kt of rutile likely to leave the market thus increasing the price of rutile and value of SVM's project. A non-holder like myself is more reminded of the risks building mines in very poor African countries. Both points are valid, of course confirmation bias means bulls can't see the downside, or don't want to think about it because cognitive dissonance.
ILU's release was timely given my reviewing SR as a comp for SVM. As I dig deeper into the comp with SR's undeveloped Sembehun deposit the similarities become more remarkable. Add to that both projects situated in very poor countries indeed. SL has $4B GDP but higher GDP per capita with a population of 7M vs densely populated Malawi with 18M people sharing $5.4B GDP.
Another glass half full, half empty situation in my opinion for SVM. On one hand Malawi's poverty means the world bank will probably cheaply fund SVM's mine development to guarantee desperately needed investment, jobs and the multiplier effect to help lift Malawi's GDP and reduce poverty. On the other hand, everyone from the locals up to the president will consider "their mineral deposit" is a cow to be milked for the benefit of all... except the western company that discovered it (eg SR in SL, Base in Madagascar, everyone in Tanzania etc).
Best not to think to hard about comps with SR if your investing here for the long term, the cognitive dissonance really is a bitch.
SVM Price at posting:
70.0¢ Sentiment: Sell Disclosure: Not Held
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