I just watched the 121 Mining Conference presentation that Nic did, and feel the need to say that it was pretty poor IMO. His Crux interview was much better. Speaking to a broader audience, he went into too much detail on unnecessary topics, talked about some poor outcomes (like M&A) explained in beginners terms some of his presentation, and basically told them to take another look after September, rather than now. Maybe there were no mining people there and he needed to do this, but that should not be the case at a Mining Conference. The message needs a good clean up and some spit and shine IMO. If you are talking in England, how long would it take to update the cost and revenue numbers to GBP? Not very long is my answer.
It is clear from multiple presentations that the team holds Ian Gandel slightly in awe - the CFO and Nic both slightly breathlessly talk about MR Gandel - his large shareholding, and his multiple investments in differing market participants. played up too much IMO, particularly when some see him as a fly in the ointment. In sales the trick is to sell the sizzle rather than sell the sausage. Nic spent a lot of time on sausage ingredients, and came across as almost apologizing for some negatives that HE highlighted unprompted (unnecessary and unhelpful IMO).
Alkane has a good news message - Tomingley production increasing by 30% imminently, current project phase on time (we think), approvals in place, and further production increases coming over the next two years. - Boda is a large resource in the style of Australia's largest gold plant at Cadia. Scoping study coming up fast. Very long life mine for any scenario. With the right plant will be highly profitable. Looking to partner. - Limited shares on issue, meaning good returns for investors.
He did make the point that Alkane has limited institutional shareholding partially because they have not tapped the capital markets for money much as all.
Still a good news story (subject to the Newell Highway diversion cost), but not one of his best IMO.
ALK Price at posting:
62.5¢ Sentiment: None Disclosure: Held
(20min delay)
