SUV Suvo Strategic Minerals RTO Analysis

From the prospectus , Media articles and Presentation

https://hotcopper.com.au/asx/suv/corporate-spotlight/#cs-tab-6504

http://suvo.com.au/



Suvo Strategic Minerals :

SOI : 525,568,245

Mcap : 10.5 mil
Cash : 5 mil
Ev : 5.5 mil

Suvo is Dual strategic mineral play in WA - Kaolin & Silica Sand

• Extensive exploration completed, Maiden Inferred JORC Resource of 35.1Mt White Kaolinised Granite
• Outstanding potential project economics
• Low exploration costs
• Low capex
• Near term
• Excellent logistics solution
• Rail access
• Port access

The Kaolin – Mt Marshall Project (100% Owned)

Not often does Due Diligence drilling on a vend asset prove up a substantial resource. This is what has happened here.SUV completed scout air core drilling over only 5% of the granted tenure and delivered Maiden Inferred JORC Resource: 35.1Mt of White Kaolinized Granite with an average ISO Brightness of 80.3 and average yield of 38.2%.

To date 27 air core holes totaling 644m have been completed.

Quality infrastructure and private landholdings significantly reduce time to production and costs.
Transport options include road, rail (intersecting tenements to the North & South), containerized and/or bulk through Fremantle, Geraldton, Bunbury and/or Albany.Private land means no onerous native title and environment processes

ENEABBA PROJECT (SILICA) 100% OWNED

• Global sand shortages
• Vacant Crown Land
• 270kms from Perth, rail to Geraldton Port
• Potentially very large
• Low capital intensity
• Low impact chemical free mining
• POW submitted for JORC resource drilling late 2020

Peers comparison :
Kaolin - Andromeda Metals (ADN:ASX) has a market cap of $73 ($110M including options that are exercisable at a 78% discount to last close) with Kaolin assets including 26mt of Kaolinized Granite at Carey’s Well and a non-JORC reserve at Mt Hope of 12.26mt.

Silica - Early work suggests SUV’s deposit could be similar to VRX Silica’s (VRX:ASX) Arrowsmith North and South projects which are in the same region as SUV’s Eneabba project. VRX’s market cap is $40m.

Capital Structure:

Mcap : 10.5 mil Cash : 5 mil Ev : 5.5 mil SOI : 525mil

UTR shell shareholders were badly crunched in 1: 10 consolidation . Shell Holders will only hold around 100 mil shares .
150 mil vendors shares escrowed for 12 to 24 months.

There are no shares issues under 2c RTO price

Conclusion

Experienced BOD , Two extremely promising and prospective projects , tight capital structure , Good Lead Manager , Projects close to infrastructures and Extremely cheap and low EV of 5.5 mil .

IMO It should open 3c and in next 3 to 6 months it might go 6 to 8 c

PLEASE DYOR

ALL IMO

GLTHQ