Archer going forward

New shareholder, first post.

Archer is a ten year over night success. Greg English and team have done an excellent job assembling a solid portfolio. However, whilst minimizing dilution they have not developed many assets to an advanced stage.

Many will be aware of Renascor’s recent mou announcement. Admittedly non binding but very encouraging. The new Archer CEO and chairman must be aware of an mou potential or serious backer to think of going it alone. I’m confident there’s something in the pipeline.

For the balance of the assets - doing small exploration programs spending $250k-$500k a year isn’t going to cut it. Cobalt will be in serious scarcity by 2022/2023 and in order to be in production by then AXE needs to spend $6-$10m immediately on Ketchowla and Broken Hill. It would appear Leigh Creek can’t be sold near term, that was meant to fund everything. So we’ve reached a point where capital needs to come from elsewhere. My insinuation is that the graphite business has been approached and management will be stretched covering that potential.

IMO I’m very excited by the move to split, this is what I would be advocating. Dilution does not concern me as the uplift in value from $’s spent will be 5x plus IMO. Further, I’d happily see the cobalt assets go into a separate listing, perhaps with the manganese. Have faith people, if you read through the metallurgical test results and the drilling targets we have there are very good times ahead. Naturally we don’t want a bad deal or to under sell but the unbundling needs to happen ASAP to ensure we don’t miss the cycle.

GLTA