ClockWorkOrange
03 Jul 2015
Re: New Chairman RNS Jaknife who pays you to deramp?
ClockWorkOrange
03 Jul 2015
Re: Further AGM answers. Any thoughts re seller? It's not from the placing...
marab
03 Jul 2015
Re: Further AGM answers. Many thanks for the feedback. Does make you wonder where we would be without yesterday mornings dire RNS.We do seem to have a seller getting rid of millions of shares so there may be an element of coincidence in the current sell off ie. the selling may not be just because of that terribly worded RNS.
thehog2
03 Jul 2015
Further AGM answers. Further AGM answers. I cannot write quickly at present as a combination of age, and having only one correctly working eye yesterday, impacted on my abilities to some extent. Also, as I knew that many questions would be answered by this morning's post, I decided to concentrate on other points, many of which were formed working with Mara.I was very glad to see the mention of future dividends in this morning's Proactive piece, as despite the unfortunate panic yesterday, it was confirmed to me that with Cobre ticking along at it's present levels 'making a significant contribution to Corporate overheads', plus the income from Tatu both during construction, and after, we looking at near term profitability. Today we had a hint of dividends being a possibility, though I suspect that will occur in years 2 or 3.One of the questions was regarding the confusion where we had both US$10 and US$15pt being mentioned. I had assumed that this was confusion caused by mixing up US and NZ $, but in fact it was really tax. The tax bill will be 30% so we are looking at a targeted US$10pt net of everything.The plan will be to repatriate as much profit to the UK, as allowed by NZ regulation to utilise the tax allowances we have in the UK. So I would expect no UK tax to pay for some time.On the subject of future placings JP stated he 'refuses to mislead the market' and that placings may or may not happen. What he did confirm is that there will be no placings for working capital (as is so common on AIM). Any future placings will only occur for added value. That was a clear statement without any conditional nonsense, and I at least am happy with that.In the IG video there was mention of ' discussions with the owner still ongoing'. These discussions are to do with infrastructure, roads etc. If you look at the RNS announcing Tatu it lays out certain 'rights of first refusal'.It was made obvious in commentary that our new Chairman is our key Tatu man and will be seeing things through to completion.I had a number of questions regarding talk of bulk sampling, and my own expectation that existing samples would have been sufficient. These were ably answered by AB. The historical samples were done in the days of Nationalisation, and were geared to an age where the coal was used mainly for domestic heating and small boilers. We are now in a different ball game as residue contents vary from one coal to another, and this matters to the potential end users. It was clear that the intention of those bulk samples is to allow for the close matching of our coal to potential customers requirements. There was a little smile on AB's face which to me hinted that we might, as Marab writes, 'expect something unexpected'.For those that have been asking, the stockpiles at Cobre are of 3 month planned sales. This to me is very sensible as it will allow the company to vary production based on sales very economically going forward.That's all for now.TH2
thehog2
03 Jul 2015
Your AGM Questions Here they are, I have only given them a very quick scan as I thought it important to get it out
lease bear in mind that all answers have to be written in a way that comply with market requirements.TH2AGM QUESTIONSCobreDo you think it would be viable to actually dispose of Cobre to a local Company and concentrate our efforts elsewhere? Not commercially viable while Freeport access is annually reviewed.What part do you see Cobre playing in the overall scheme of things?Cobre is consistent with our strategy of layering small profitable projects Is Cobre currently profitable?Cobre is a profitable operation which contributes significantly to corporate overheads If not, how long before you can make it profitable?NA Are there any reasonable prospects for increasing sales at Cobre to a more useful level? We continue to actively seek additional sales opportunities in a difficult marketGiven that Cobre now has a sales ready stockpile to hand, and consequently no need to work the tailings pit on a regular basis, what steps have been taken to protect the remaining Magnetite? To be answered within the weekAre you continuing to water spray it from a bowser or have the contractors placed a soil screed over the top to prevent wind erosion of the asset?To be answered within the week TatuHow supportive are the local and national governments of Tatu being reopened by SML? We have received efficient, helpful and professional service from all levels of the New Zealand government and, given the likely impact of this project on the local community, anticipate a continuation of the same. When can we expect the approval by the New Zealand authorities for change of control of the mining permits held by KCM? Our expectation is that this should be finalised by no later than mid JulyTatu is said to have a resource of 7.3m tonnes of coal but how much of that is deemed recoverable? Refer to the recent Jorc statement released by RNSHow long will it take from transfer of the mining permit to construct the mine?The mining permit is owned by the company SML is purchasing King Country Mining. Accordingly, the permit remains active throughout the whole process and, upon acquisition of the balance of the King Country Mining shares, totally under SML's control. Are there any fault lines running through the licence area?Will Tatu require a coal washing plant? NoWhen might we expect the Feasibility Study for Tatu? Feasibility work is well advanced although, at the moment, I do not wish to commit to a time frame for release. How much will the mine construction cost? The Feasibility study will outline our expectations in this regard but one of the attractive aspects of the Tatu project is that expected capital cost is low and our Feasibility work is indicating support of this assumption. How much will everything else cost ie. the mine working equipment, offices, services, etc?The Feasibility study will outline our expectations. How big might the potential expansion of the Tatu Project be?While potential exist to significantly increase the Tatu resource it is premature to specify the degree of potential expansion. How much will it cost to drill etc to define the potential expansion of the Tatu Project?Premature to comment on Will there be a number of customers for Tatu or just one major one? It is anticipated that there may be a number of customersWanbaoWhat is the probability of Wanbao going ahead?Premature to make a comment on this given the myriad of issues still to be considered prior to commitment. How big is the resource at Wanbao? Work, not being funded by SML, is being conducted and we anticipate this being in a releasable format in the not too distant future. However, this is expected to be significantly larger than than Tatu Would it be deep mined or open pit? Commercial feasibi
thehog2
02 Jul 2015
New presentation on Website [link]
thehog2
02 Jul 2015
AGM RNS 2 July 2015Strategic Minerals plc("Strategic Minerals" or the "Company"
Result of AGM Strategic Minerals plc (AIM: SML; USOTC: SMCDY), the diversified mineral development and production company, is pleased to announce that at the Annual General Meeting ("AGM" held earlier today, other than resolution 3, all resolutions were passed. Resolution 3 concerned the re-election of Michael Wong and was not put to shareholders because, as previously announced, Michael Wong did not offer himself for re-election as a director of the Company due to his increased workload with his investment banking business. At the meeting John Peters, Managing Director, made the following statement: "Unfortunately we believe the statement made earlier today has been misinterpreted and I would like to reaffirm to all shareholders the current position of the Company, which the Board and I feel is highly encouraging and positive. "As stated in our very recent final results, the Board had to review the Cobre operations after it was hit by the falling iron ore price. As a result, Cobre completed its final export of product in February 2014 and is now focused on the domestic market. We were delighted to announce in our results that domestic sales were up by 25% and it is still a cash producing project for the Company. "Further to this, the Board has made strides in reducing operational costs at the site as well as within the operational structure of the Company, thereby creating a leaner, base of which we could build upon positively for the future of the business. "Since then, your Company made significant headway. Following my appointment in January 2015, we redefined the strategy to focus on small sized projects that provide near term cash flows and focus on local markets which we believe is the best way to provide value to our shareholders. "We have rapidly progressed this strategy and in March announced the conditional acquisition of the Tatu Coal Project in New Zealand. We have since announced that the project has a JORC estimate of 6.72 Mt of measured and indicated thermal coal and our aim to provide first thermal coal sales in the first half of 2016 is on track. "This month, we announced the successful raising of £1 million before expenses through a placing to fund the development of the project and complete the acquisition. The expected future cash flows from this project, once operational, combined with the existing Cobre asset will support the long-term sustainability of Strategic Minerals and our objective to be a profitable mining company. "We have also announced to the market that we entered into a Memorandum of Understanding with the owners of Wanbao Metallurgical Coal Mine in China to assess the underlying resource. This is once again a positive development for the Company as we identify and progress potential opportunities that offer small sized, near term cash flow projects that are domestic facing. "Finally, earlier this week, we announced the appointment of Alan Broome as Chairman. Alan is a real coup for us. Not only does he bring with him broad mining experience but also has an in depth understanding of the New Zealand coal market. He will be key in our successful progression of the Tatu Mine Coal Project. "I hope that that clarifies the current position of the Company. We are progressing well with our strategy and now have a well-balanced, strong and reliable Board to bring our aims into fruition. We have some exciting projects on the horizon and believe that 2015 will be a positive year for the Company." Please note that an updated Corporate Presentation is now available to view on the website: www.strategicminerals.net. For further information, please contact:Strategic Minerals plcJohn PetersManaging Director +61 414 727 965Allenby Capital LimitedNominated Adviser and Joint Broker
marab
02 Jul 2015
Re: Placing Price ‘I am refining my forecast to a placing of £1.5m at 0.4p to be announced within a week - in conjunction with the year-end accounts’. No change to your last guess then when the reality was £1m raised at 0.6p.‘On the other hand, the double RNSs today would permit you to empirically demonstrate that one of those is definitely correct.’ I think the double RNS proved that someone screwed up but bearing in mind the difference in timing and information content between the two, I think we can safely assume that the first effort is not what SML management wanted. As all RNSs have to pass through the nomad I know where I would look for the author of the first RNS, and it ain’t SML.
JakNife
02 Jul 2015
Re: New Chairman RNS "SML are creating an outstanding management team....."I'm not convinced that you have adequate data and/or the skill set to determine whether the management team are "outstanding", "good", "poor" or "incompetent buffoons who can't communicate".On the other hand, the double RNSs today would permit you to empirically demonstrate that one of those is definitely correct.Shall we take bets on the next placing?I'm forecasting £1.5m at 0.4p in September.regards,JakNife
thehog2
30 Jun 2015
Re: Our MD speaks "you wait years for a project then three come at once "And unlike the previous team these projects actually exist!TH2
marab
30 Jun 2015
Re: Our MD speaks Typical really - you wait years for a project then three come at once
thehog2
30 Jun 2015
Re: Our MD speaks And the third project is Vancouver in Canada.Obviously we have no way of banking anything without greater detail but good to hear, none the less.TH2
thehog2
30 Jun 2015
Our MD speaks It looks like the guys at Yellow Jersey are earning their keep:[link] talking and BS free!TH2
thehog2
30 Jun 2015
Re: New Chairman RNS Marab,I totally agree. We have seen the new team work their socks off for small rewards. The game plan has to be successfully turning the company around in reasonably short order.The ability to cut 100kt of saleable coal while working the shaft or down ramp is a real bonus as it will go a long way towards covering expenses.Just sit and wait for future RNSs seems like a good plan.TH2
marab
30 Jun 2015
Re: New Chairman RNS Thehog – I can see a lot of positives in the new chairman appointment but no downside. As a non exec he will not be paid a huge salary, and there must be a reason why SML want him as chairman rather than a Brit. My guess is that he will be the Antipodean face of the company.SML are creating an outstanding management team (including JC who is still working in the background) and I can’t see any reason for them being involved in SML unless they are very confident of future success. I would guess they are not involved for the small salaries and foreign travel.
