A few random thoughts
Being close to all time highs, there will be no tax loss selling as we approach June 30. Nonetheless institutions do like to cash in profits as a balance date is approaches, luckily we have only a small institutional holding compared to our peers.
As June 30 approaches so too does our Resource upgrade with a Reserve upgrade after that. It’s been a long long time since they did that Reserve calculation, looking at the drilling result diagrams there is a lot of ore able to be captured by a new pit shell. As Simon hinted, maybe the NE Domain & Danaya will join up into one big pit. What is a big plus for us is the shallowness of our Reserve as evidenced by the very low LOM strip ratio our peers just dream of and one of the reasons we’ll be a low cost producer.
The last Reserve update took us from 30mt @ 1.56% to 52mt proven + probable using a cutoff of zero which tends to pull the grade down (most companies use something like 0.5%), in real life they would be more selective in what is processed giving better head grades. The important thing here is a larger Reserve will allow them officially to talk about stage 3 (although Resource allows Reserve increases, it’s the Reserve that determines LOM at the various stage production rates).
Some updates & pictures of the vertical structures with the Ball Mill & crushers in place will go a long way to showing the market that we’re on schedule & yes you can construct in Mali
DSO - although the revenue is no longer needed, it will prove up the logistics - that we can truck 1000km & the port system etc works efficiently. Critics of our distance do seem to forget that even Liontown have to truck 700km and even considerably longer if they want to use an alternative route/port. We have 2 routes, about to become 3 with the possibility of Guinea too.
1st stage of the elections coming up shortly, showing they are making progress to getting back to Democratic rule & most importantly avoiding further sanctions. Buy hey it’s Africa coups are fairly common and there has not been a shot fired in them. Simon seems to have contingencies well under control just in case.
We can also look forward to Ganfeng officially taking up that 9.9% placement. That will mean we’ll be the only fully financed Developer building a mine on the asx. Absolutely zero chance of more dilution by a Cap Raise as those over at Sayona have experienced. Yes we have 9.9% more shares on issue, but that actually increased our share price because of the premium it was done at compared to most cap raises done at a discount. Also importantly we’ll have lowish debt when we do commence production, the free cashflow will allow a speedy development of stage 2 and beyond.
In short, we're on track, fully financed, importantly to shareholders as Woody's post shows above, we are very undervalued not only compared to our peers but based on the profit we'll soon be generating. The risks are slowly but surely being eliminated.
(20min delay)