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HarryMc

80 Posts.

2

18/11/18

22:00

Post #: 36550481
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Originally posted by 7benson7 ↑

Hi Harry, I read that odd post by a self proclaimed lord yesterday. I just politely gave him a like and moved on.

I'm not interested in getting into arguments with some of those guys over there who seem to be feeling insecure.

We don't need to feel that way, we don't have any need to sling mud or stress at what some want to say. As people know I hold AVL and AVLO and I'm confident they'll publish a great round 2 PFS before the exercise date and things will work out just fine. That said, I understand why some people feel threatened by the new kid, rocked in late and with an experienced team from MW's Cicero Group they've absolutely shot the lights out:

$4m IPO and drilled out 120MT including the maiden mine reserve with an overall slightly better profile than AVL - in 15 months. Hardly vastly removed... but okay.

Raised $3m to complete a PFS, drill to significantly expand this mine reserve and global resource. Metallurgy delivered 99% then 99.5% samples - in 6 months.

Raised $6m to complete a DFS, continue drilling campaign and obtain offtakes to commence funding discussions - planned in 9 months.

$13m and 30 months that is... to take a company from nothing to a funded, ready to sign contracts, future miner.

I guess I'd be feeling uneasy if I knew all this and hadn't yet bought TMT too.

Just relax and let them do their thing, whatever that is it won't affect us. Steel producers want the whole lot. Us and them.

As far as what was said, just have a look and satisfy yourself it's just mud from little Farquaad. Read the tenement 51/2930 acquisition announcement on 4/7/18 - we agreed to pay a royalty (1% net smelter return... not revenue your Lordship) of any commercial production of V2O5 from the tenement. Given that the tenement is not on the strike and we have no intention of drilling it for V2O5 I don't see how this impacts us. Great news if it does I guess, other than us having to move our plant to start a new pit. This is probably enough to dismiss the post as sour grapes like I initially did but I'll go on.

Have you seen what Cicero have done? Super lean team but Fry is also at BRK, in production. IP specialises in doing exactly what he's done here, identifying and progressing but has been operational in the past and proven himself to be the most competent man for the job. His appointment as MD in May didn't get much fanfare but is one of the most positive announcements of the year.

You can't question them, just judge them on what they've done. The team will undoubtedly expand when required but not before. We're running lean until we have funding. V experience is very rare and Harris was a great get for AVL, good on them. Our contracted metallurgy team seem to have done just fine without his experience though. Wave International are widely respected. Our lean and mean strategy seems to be working reasonably well you might say.

The drill campaign is what you get in 21 months for $7m, extremely targeted towards what was required for a PFS. Most critics of the PFS haven't read it but it did everything it was asked to do. It's a detailed mining plan for the 10 years of the indicated mining reserve leaving a 3 year stockpile to continue processing. The costings included contingencies for unknowns and Wave International will be first in line to progress to formal engineering design. Look at their CV, they're no ring-ins.

18 months to a PFS was spectacular.
No doubt AVL's will be more robust but last time I checked we're progressing towards a DFS. There's no such thing as an incomplete DFS, it will be the blueprint we use to fund and build the plant.

The PFS includes only 16Mt of the Northern block. This central pit has recently been extended significantly to the South and will form the balance of the reserve utilised for the DFS. This is funded and will go close to doubling the NPV per my calcs (double LOM @3.90 opex)... so exactly why would anyone in their right mind be selling?

It's just sour grapes Harry. Relax with what we're doing and let the little people throw stones.

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Thanks mate. I always appreciate it when you share your great insight and knowledge.

TMT Price at posting: 54.0¢ Sentiment: Buy Disclosure: Held
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