$BKIRF : Black Iron Inc. — Independent Economic Analysis

Long-Term Price Case$97.19/dmt
Flagship ProjectShymanivske
Ownership100%
Shares Outstanding186,300,000
Market Cap$11,178,000
Average Annual Production7,065,000 dmt
Recovery98%
Payable Product141.3M dmt
LoM20 Years
True All-in Costs (TAIC)$56.26/dmt.
Gross Revenue$13,732,947,000
Ukrainian Federal Government Royalties($863,300,000)
Net Revenue$1,286,9647,000
Total Operating Costs ($4,446,200,000)
Operating Cash Flow (EBITDA)$8,423,447,000
Income Taxes($1,516,220,460)
Total Capital Costs($1,124,200,000)
Net Income$5,783,026,540
Net Profit Margin42%
Absolute Cost Structure (ACS)58%
MTQ Score (Higher is Better)0.7
True Value$31.04/sh.
True Value Discount (TVD)100%
Cash Flow Multiple5x
Net Annual Cash Flow$289,151,327
Future Market Cap$1,445,756,635
Future Market Cap Growth12,834%
Target$7.76/sh.

Notes: All Values in U.S. Dollars

Black Iron Inc. enjoys an MTQ Score of 0.7, which places it within the 80th percentile of companies under investigation. In other words, Black Iron’s projected Net Profit Margin potential is high, while its projected Absolute Cost Structure is low, a combination for which Fahy Capital Management looks when placing a prospective investment under the microscope.

MTQ Scores (BARS — Higher is Better) Vs. Absolute Cost Structure (LINE — Lower is Better)
Update, 27 September 2019

Ukraine’s Defence Minister, Andriy Zagorodniuk, has agreed to the transfer of land required for the development of Shymanivske. A Memorandum of Understanding will be signed next month.

Tsumeb

…an unusual combination of complex geochemistry and development of a massive oxidation zone where supergene enrichment created a paradise for collectors and mineralogists. –Phil Persson

“Phil’s Top Ten Mineral Localities of the World,” The Collector’s Edge, 2017

Persson was referring specifically to the prolific Cu-Pb-Zn-Ag-Ge-Cd mine of the same name in the Oshikoto Region of Namibia, a region that will become of greater interest to Fahy Capital Management if a handful of stars align over the next few days.

The question that has been on every earth scientist’s lips is: could there be another Tsumeb deposit lurking undiscovered in the Otavi Mountainland? –Clive King

“An Introduction to the Geology of the Tsumeb Mine, Namibia,” Tsumeb.com

Underground mine Geologist, Clive King, for one, believes the Northern Carbonate Platform still has secrets to reveal.

Stay tuned!

$PZG : Paramount Gold Nevada — Independent Economic Analysis

Long-Term Price Case$1,700/oz. Au & $24/oz. Ag
Flagship ProjectGrassy Mountain
Mineral Resources (M&I)1,103,461 AuEq ozs.
Mineral Reserves369,285 AuEq ozs.
Fully-Diluted Shares29,288,909 
Fully-Diluted Market Cap23,724,016
Recovery95%
Average Annual Production47,706 AuEqu ozs.
LoM7.25 Years.
Payable Product357,794 AuEq ozs.
True All-in Cost (TAIC) $1,008/oz.
Gross Revenue$608,249,800
Transportation & Refining Cost($1,882,000)
Sherry & Yates Agreement($9,095,517)
Total Operating Cost($185,789,000)
Operating Profit$411,483,283
Net Taxable Income (Net of Depreciation & Applied Loss [ ($158,880,000) ])$252,603,283
Federal Income Taxes($53,046,689)
Total Capital Cost($110,947,000)
Net Income$247,489,594
Net Profit Margin41%
Absolute Cost Structure (ACS)59%
True Value$8.45/sh.
Cash Flow Multiple5x
Annual Cash Flow$33,012,552
Future Market Cap$165,062,070
Future Market Cap Growth596%
Target$5.64/sh.

Notes: All Values in U.S. Dollars.

Paramount Gold Nevada is a growth company in the making and will likely be awarded a rich premium on the back of timely execution, exemplary management, a robust asset pipeline in a friendly jurisdiction, and a high probability of discovery at Frost.

Paramount’s Net Profit Margin is good and it has an excellent Absolute Cost Structure which enable us to award the company with a 5x cash flow multiple resulting in possible Market Cap appreciation of up to 596%.

Namibia Poised to Become World’s 4th Largest Producer of Uranium, Eclipsing Niger

The Namibian Government has lifted a ten year moratorium on new uranium exploration and production licenses and has rescinded its long-standing Namibian ownership and management clause.

One recent beneficiary of deregulation is Australian explorer, Marenica Energy*, which has acquired exploration licenses for five tenements covering 180km of prospective territory.

With its uranium mining sector currently ranked fifth globally, it is the Namibian Government’s belief that aggressive deregulation will incentivize strategic investments that will transform the nation into the world’s 4th largest producer.

*Marenica Energy is the developer and patent-holder of the U-pgrade beneficiation process for surficial uranium projects. U-pgrade technology has been licensed for use at Deep Yellow’s Tumas Uranium Project, where it has been theorized that the process will dramatically transform the economics of the deposit, lowering capital and operating costs by as much as 50%, compared to conventional processing, as > 95% of mass of the ore is rejected prior to leaching. Incorporation of the technology into development of Tumas significantly lowers the price hurdle of the Project.

RNC Minerals — OTCQX: RNKLF

Dumont Nickel-Cobalt Project — A Robust, Long-Life Nickel-Cobalt Sulphide Project

The Dumont Nickel-Cobalt Project is the 3rd largest nickel reserve in the world, the 5th largest nickel sulphide discovery ever (largest since 1960), and one of the largest cobalt resources outside of Africa. Additionally, the project is structurally low-cost, large-scale, shovel-ready, and once in production, will be the largest cobalt operation in North America.

The jurisdictionally advantaged, fully-permitted and community-supported project will have a mine life of approximately 33 years with an initial production of 73 million pounds of nickel and 2.3 million pounds of cobalt contained in concentrate annually, with an expansion in year 5 to 113 million pounds of nickel and 4.3 million pounds of cobalt annually.

Cobalt Potential

Dumont - World Class Cobalt Potential

 

1 Billion Tonne Reserve + Upside Potential

 

1 Billion Tonne Reserve + Upside Potential

 

RNC Mineral’s Nickel Roasting Approach: A Significant Breakthrough

RNC’s strategic alliance with Tsingshan led to the development of the first integrated nickel pig iron (“NPI”) plant to directly utilize nickel sulphide concentrate as part of the stainless steel production process through concentrate roasting. Roasted nickel concentrate is effectively a very high grade laterite ore feed which effectively creates a new source of demand for nickel sulphide concentrate, notably at a time when many NPI and ferronickel producers face feed shortages as a result of Indonesia’s nickel ore export ban.

RNC Minerals: End Notes

The Dumont Project is a 50/50 joint venture limited partnership with Waterton Global Resource Management, funded with US$35M in capital commitments to develop Dumont and acquire additional nickel assets, and backed by Waterton’s two largest funds with a total of US$1.725B in committed capital.

The joint venture’s objective is to establish a pure-play nickel company with multiple projects operating in stable jurisdictions.

On Dreamtime

Many African and Aboriginal cultures are liminal cultures, meaning they cannot both conduct human affairs productively and make appeals to democracy. But non-irrational governance mustn’t ever be perceived as equivalent with primitiveness. Many cultures have succeeded by governing via a functional ‘dreamtime.’ Grant once more a people access to ‘dreamtime’ and a semblance of order resumes. The outback is no place for democracy.