Crystal Ball Gazing, page-48

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Accumul8r

412 Posts.

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19/07/24

08:23

Post #: 74822103
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Originally posted by Sandsman: ↑

Hi Accumul8r

GMA would be the one.

Well, the demand is there for garnet and we have the good stuff which a neighbour might just be beginning to run low on...Everything has a price, doesn't it?

First step for Heavy - Feasibility Study to determine (or derisk) the economics of the project. What is the upfront cost (CAPEX) and what are the running costs to produce the garnet?
What is the next (or best) way to 'package' the garnet and in what form to maximise profit? Are there bigger strategic opportunities available? (Think big!)

Those scoffing at you for even considering not going to production - what if they received a call from a neighbouring garnet producer in Port Gregory offering to buy there shares for 50c each right now?
I am sure many would sell right now, quick smart!

Point being, is I said earlier - money talks.Your point about the option to sell to one of the local giants could be plausible and certainly a fantastic 'fall back' option.

I like the investment here for that reason (re-risks it for me at current levels) as if for some reason the economics of the project does't stand up, demand for the product changes (and therefore the price goes down), we experience another global pandemic or the funding process is botched by management to name a few of many risks - this is a good plan B. These are real risks.

As a said, first step from here - get the PFS completed.

Next funding step (I assume will be a royalty) must cover us through to a completed PDS - not just to cover the next quarters company running costs.I say royalty, only as there was a shortfall in the SPP last time and there has been no progress since then and the share price is the same.

And the other assumption I have is there is a control thing happening at the top and so brining on a large strategic investor who might turn from friend to foe in the future they would not consider.It's exciting, but we just need to keep level heads as we methodically derisk from here.

If funding was 'a given' as some have said the market would not be valuing us at a 6m market cap.
Trying to be balanced.

Just my 5 cents.

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@Sandsman you get it, that’s exactly what I was trying to say, why go through it all if you can get the gain without the funding and construction pain.

HVY may jawbone about getting to production, and whilst it could happen, a very solid plan b would be to fill a neighbours void.

Begs the question of how and why the neighbour let them position themselves where they are?

HVY Price at posting: 8.6¢ Sentiment: None Disclosure: Not Held
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Last 12.0¢		Change 0.000(0.00%)		Mkt cap ! $8.045M

Open	High	Low	Value	Volume
12.0¢	12.0¢	12.0¢	$1.5K	12.5K

Buyers (Bids)

No.	Vol.	Price($)
3	158545	11.0¢

Sellers (Offers)

Price($)	Vol.	No.
12.0¢	4103	1

View Market Depth

No.	Vol.	Price($)
2	150000	0.110
2	59761	0.105
2	19000	0.100
1	7939	0.092
1	5566	0.090

Price($)	Vol.	No.
0.120	4103	1
0.130	51029	2
0.135	214794	3
0.140	10000	1
0.145	82254	1

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Crystal Ball Gazing, page-48

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Crystal Ball Gazing, page-48

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