Mining Gems

Mining investor for over 25 years. Preparing for the next mining boom.

[Mining Gems @gem45156_gems]

#TUN has fallen 13% since the appointment of #Zeus as joint broker. It was mentioned last week the possibility of a #TUN fundraise to acquire #SML. This would be opportunistic on #TUN part as #SML has an asset value considerably higher than #TUN. Any bid would need to be north of 50p #SML #Cornwall

[Mining Gems @gem45156_gems]

Smart money is moving out of #TUN and into #SML . #Zeus fair value on #TUN still offers a potential 100% upside. However, #Zeus fair value on #SML offers a potential 300% upside. Take your pick of #cornwall #tungsten plays.

[Mining Gems @gem45156_gems]

#Tungsten prices are only expected to rise over the next 12 months. Lots of excitement and activity in #Cornwall where high quality #Tungsten companies are about to explode. #SML is the stand out investment pick based on grades and resources. #Zeus fair value price of 14.9p looks very light based on the current NPV. #SML #Cornwall #Tungsten

[Mining Gems @gem45156_gems]

#TUN could very well try bid for #SML to drive higher volume through their plant. #TUN #SML

[David Roberts @DavidHyett6283]

@gem45156_gems That's a very interesting point of view, care to expand?

[Mining Gems @gem45156_gems]

The appointment of #Zeus as joint broker to #TUN has put the skids under the share price today. Is #TUN about to raise funds to acquire more #Tungsten assets for their processing plant? After the recent gov award they certainly don’t need funds for working capital. #Tungsten #TUN #SML

[Mining Gems @gem45156_gems]

@caino_wins For sure but high grade always wins the day. #SML #Tungsten

[Mining Gems @gem45156_gems]

Sold my #TUN and reinvested £60,000 into #SML. Limited upside at #TUN in comparison to #SML upside. #Cornwall #Tungsten #SML

[Mining Gems @gem45156_gems]

Another superb update from #SML today confirming drill programme is on target and within budget. Out of all the critical mineral plays in #Cornwall I’m now convinced #SML will prove to be the biggest, the best and the most profitable. As a result the #SML share price could be a thing of beauty over the next 6 months. #SML #Tungsten

[Mining Gems @gem45156_gems]

#SML is being completely overlooked by the market IMO. Today’s news improves further on the MRE by a very wide margin. Zeus fair value of 14.9p offers a 300% upside from current levels. #SML #Tungsten #Copper #Tin #Cornwall

[Mining Gems @gem45156_gems]

#SML update today confirming higher grades and a potentially larger resource. A clear winner in the race for #Tungsten in #cornwall

[Mining Gems @gem45156_gems]

@StrategicMnrls Sleeping giant is #SML

[Strategic Minerals PLC @StrategicMnrls]

"Redmoor could help restore Cornwall to the international mining stage,” reports Daily Mail.

Great to see #SML and Redmoor featuring in the Daily Mail’s financial website, This Is Money which has such a wide readership.

Read more here: https://t.co/3EdizCPCFu

#Redmoor

[Mining Gems @gem45156_gems]

@MBdaytrading The Trump Strait Jacket more like.

[Mining Gems @gem45156_gems]

Encouraging disposal announced by #SML this morning. Cash upfront, Smelter royalty, 19.9% in a new listed company. All this from a non core asset. A unique investment is #SML as it generates over £1.3m profit from its USA assets provide solid cash inflows. #SML also has the largest undeveloped #tungsten resource in Europe. #SML #tungsten #copper

[Mining Gems @gem45156_gems]

@baroninvestment Obvious consolidation target is #SML but word on the street suggests a bigger player is in the driving seat. #TUN offer would need to be compelling. 50p min with 70% in cash and 30% in #TUN paper

[Baron Investments @baroninvestment]

More thoughts below on STRATEGIC MINERALS and why they represents the most logical bolt-on acquisition for TUNGSTEN WEST following last week's landmark investment by the UK Government.

Background -
The UK tungsten sector has undergone a seismic shift in the past week or so. On 25th August, holding Tungsten West secured up to £71M from the UK government's NWF to restart the Hemerdon mine in Devon - a transaction that crystallises the UKs intent to build a domestic tungsten supply chain independent of China. That single event has profound read through implications for holding Strategic Minerals and its nearby Tungsten-Tin-Copper project in Cornwall.

Strategic Minerals, extradionary economics on current knowns (pre PFS) -
Zeus Capital's DCF at $850/mtu (4x below current Tungsten prices) and 1Mt/yr throughput generates an NPV10 of $1.75BN for Redmoor and risked at 30%. At spot tungsten prices, the unrisked NPV would be multiples of this figure.

SML's base-case NPV of $1.54BN at $1,200/mtu is itself 2.6x below current metal prices.

Why the variation? Zeus models 1.0 Mt/yr versus SML's own 0.6 Mt/yr. Higher throughput brings revenues and cashflows forward in time, which has a disproportionately positive effect on NPV particularly at a 10% discount rate.

SML's economic sensitivity analysis is pre PFS and indicates the scale of potential value at Redmoor. These figures will be refined, and potentially revised materially as this study completes. Zeus Capital identifies the PFS as "a major rerating point for the project" converting Inferred resources to Indicated, validating cost assumptions, and delivering bankable economics.

Tungsten West -
TUN's latest presentation confirms a post-tax NPV7.5% of $1.69BN at $1,313/mtu WO3 - a dramatic improvement on the FS25 base case of $190m at $400/mtu. This of course is based on a declared Ore Reserve with production fully ramping into 2027.

"Grade is King" -
Strategic's Redmoor deposit is Europe's highest-grade undeveloped tungsten project among all CRIRSCO-compliant projects. A 17.4Mt resource at 0.49% WO3 (0.65% WO3 Eq) was announced in March - a 49% increase in tonnage and contained metals versus prior estimates. The Tungsten high-grade domains at 7.30Mt at 0.98% WO3 Eq are exceptional by any global standard. What separates Redmoor from virtually every other undeveloped tungsten project globally is the extraordinary grade of individual intercepts, which speak to the potential for ultra-high-grade mining zones within the broader resource envelope.

The grade differential between the two projects is transformational. On a like-for-like, whole-deposit basis - the only truly comparable measure at this stage - SML's overall resource at 0.49% WO3 grades 4.1x TUN's total resource grade of 0.12% WO3 and 3.3x TUN's blended Ore Reserve grade of 0.15% WO3. SMLs Tungsten high-grade domains (a specific sub-domain) of 7.30Mt at 0.83% WO3 (0.98% WO3 Eq) grade approximately 4.6x that figure and more than 5.5x the blended Ore Reserve average of TUNs 0.15% WO3. These are sub-domain comparisons and should be read as such but they illustrate the exceptional grade concentration within Redmoor's resource envelope.

Ultimately, the grade differential generates more metal per tonne processed, lower unit costs per tonne of metal produced, higher NSR per tonne of ore, and as the economic studies confirm superior returns on capital. Within SMLs resource, the 7.30Mt at 0.98% WO3 Eq (0.83% WO3) is one of the highest-grade undeveloped tungsten resources anywhere in the world. To contextualise 0.83% WO3 (the domain average, not the peak), the global average grade of operating tungsten mines is approximately 0.15–0.25% WO3, placing the high grade domains at 3.3–5.5x the global operating average. China's primary tungsten mines, which supply approximately 80% of global production, typically operate at grades of 0.15–0.40% WO3.

Redmoor is still Growing -
17.4Mt at 0.49% WO3 is not the final word on the deposit with a major drilling campaign currently underway. 22,500m is the target (and the largest in Cornwall's modern history) and is specifically designed to:
- Convert Inferred resources to Indicated category, which will not change the grade but will increase confidence and reduce the risk discount applied by the market
- Test the Exploration Target of 1.8–3.4Mt grading 0.4–0.6% WO3 outside the current MRE boundary
- Drill the North Tin Zone, a newly confirmed mineralised structure entirely separate from the SVS, with intercepts of 4.00m @ 0.25% Sn (Tin)
- Test depth extensions below the current resource envelope, where the mineralised granite roof zone intersected in CRD044 suggests continued mineralisation at depth.

Takeover target? -
Tungsten West, now fully funded and de-risked, is the credible near-term acquirer of Redmoor. Cashflows soar at TUN as production ramps and a combined TUN/SML entity would represent a far more compelling strategic asset and a more defensible investment for the NWF. The NWFs investment in TUN is explicitly framed within the UK government's industrial strategy and its ambition to rebuild domestic critical mineral supply chains. The political economy would strongly favour consolidation rather than two separate AIM-listed developers competing for the same government attention.

The thesis is straightforward. Hemerdon provides material scale and near-term cash flow (a 327Mt of resource, a declared 70.7Mt Ore Reserve) and Redmoor provides grade and longevity with its current 17.4Mt at 0.49% WO3. Ultimately, I see this transaction as the logical next step in building a vertically integrated, UK-domiciled tungsten champion. A combined entity producing tungsten across two distinct geological settings, diversifying operational risk while maximising UK output.

That said, other parties - including European or Asian strategic buyers seeking Western tungsten supply could emerge as competing bidders ahead.

Hope helpful.

#SML #TUN

[Mining Gems @gem45156_gems]

@mining #TUN #SML super cheap on a supply demand basis.

[Oliver Groß @minenergybiz]

A comparison of global tungsten deposits. Interesting graph. ⛏️👇

[Mining Gems @gem45156_gems]

@baroninvestment At last a chancellor with a defence background and now in control of allocating government cash to #criticalminerals #TUN

#SML now in play and offers incredible upside out of all #tungsten plays in #Europe