Ann: Coburn Project Commissioning of WCP Advancing Rapidly, page-67

SFX and STA are similar projects in many ways, including NAIF funding, not in others. Fact is TB is a larger and higher grade than Coburn, so owning half doesn;t put SFX that far behind STA in terms of product exposure and NPV based on those main projects. A lot more going on than besides size and timing of development obviously, including product quality, off-take partners, MC, liquidity etc.

I could write war and peace on the two and their histories, suffice to say getting funded when the market doesn;t believe you can and the MC is too low for an equity CR without diluting existing shareholders to smithereens is the conundrum all min sand developers face. STA used to be Gunson Resources a decade ago, tried to fund Coburn through a JV with Sth Korea's Posco but it fell through. Gunson shareholders got diluted to smithereens anyway treading water for years before new players got set with the Strandline transformation. The market is judging both companies on the market daily and I'm not that fussed either is particularly mispriced right now all things considered. I'm in SFX more from a historical habit than any particular desire right now (was almost out back in Apr then was convinced to buy some back which was a mistake of course).

I'm as cynical about all management's claims as I am about broker analysts. Over icing the cake goes with the management. Every now and then I see a company downplay success, but only for a short while and only to allow their mates to get set in a big, cheap CR before putting the story up in lights. Frankly, quoting bullish management opinion of how good their projects are, or how great the market outlook, is fairly meaningless and dangerous to one's financial health. That said, much longer-term future supply (4 years) is still up in the air, so it's not a certainty and the market may surprise with better prices and opportunities. I have been careful the last 6 months to avoid having too much min sand exposure at once given the market risks.

There has been minimal new supply in recent years that's true, exacerbated by RBM's large Zulti South mine development being suspended in 2019. SFX wasted a couple of years chasing funding, Madagascar put BSE Toliara on hold for 3 years reviewing the mining code and pushing for a bigger sovereign share, plus others. Don;t rely on company brokers is my advice. DYOR, lot of information freely available and I've already given one hint this morning where to go looking. The mineral sand industry has never been so active...