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Tacora Resources Faces Potential Cash Crunch (Scully Mine) I thought they had secured money from Cargill last week ? I talked about possible reason Scully might have been interested in us because of permitting problems with tailings. Unable to up production. Cargill has a vested interest in Tacora. Previous post https://investorshub.advfn.com/boards/read_msg.aspx?message_id=170794843
https://news.bloomberglaw.com/bankruptcy-law/distressed-daily-tacora-resources-faces-potential-cash-crunch
https://tacoraresources.com/wp-content/uploads/2023/01/Tacora-Resources-Announces-Business-Improvement-and-a-New-Advance-Payments-Facility-with-Cargill.pdf
https://iaac-aeic.gc.ca/050/evaluations/exploration?search=Scully+Mine+Tailings+Impoundment+Area+Expansion+Project
Iron Ore Jumped About 60% After Bottoming Out Last Quarter, Great headline, even better chart
https://www.mining.com/web/iron-ores-sharp-gains-catch-beijings-eye-as-traders-summoned/iron-ore-jumped-about-60-after-bottoming-out-last-quarter-steel-material-has-powered-higher-as-bet-on-chinas-recovery/
Until I hear otherwise, reasons to be positive on LBRMF from company's own MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2022 Dated: November 10, 2022
The Houston Project offers low technical risk, with only building a short gravel road and rail siding as the principal construction components. The Houston Project’s deposits 1 and 2 have undergone extensive regulatory review and approval and are considered ready for construction with a one-year construction period to production. Planned operations will involve conventional open pit truck and shovel activities and simple dry crushing and screening for processing.
LIM is advancing development of the Houston Project through a number of initiatives, including: discussing an offtake agreement, including construction financing and product sale components with a potential off-take partner; advancing commercial negotiations with construction contractors, equipment vendors, rail, port and logistics counterparties; and planning metallurgical test work of drill core collected from the Houston Project in a 2013 bulk sample, to refine the product characterization and specifications which will be helpful in marketing the iron ore.
Based on the assumptions used, the PEA estimates the Houston Project will generate an undiscounted net cash flow of $234 million and an after-tax net present value at an 8% discount rate (“NPV8%”) of $109 million and an after-tax internal rate of return (“IRR”) of 39%, under the base case US$90/dmt (62% Fe Sinter Fines CFR China basis) benchmark pricing model.
If Scully does not complete the investment, the Investment Agreement will be terminated and the proposed transactions with Scully will not take place. The Company is exploring various financing alternatives, including a potential private placement of equity.
That could be because of the great Due Diligence Bobble is posting....
Volume over the last five days appears someone is accumulating shares.
Volume 57000 shares @ $.091 first minute. ? News
Just facts. No sense in sugarcoating it. If this was a consumer goods company or something where value was derived by brand, we’d all be long gone. They’re able to act like this because they sit on a pile of rocks people want.
Canada government approves James Bay lithium project in Quebec
The project is expected to produce an average of 5,480 tonnes of ore per day over a mine life of 15 to 20 years.
https://www.canadianminingjournal.com/news/canada-government-approves-james-bay-lithium-project-in-quebec/
China Reopening Rally To Drive Up Iron Ore Prices
https://seekingalpha.com/article/4570335-china-reopening-rally-drive-up-iron-ore-prices
The problem here is leadership. They have failed in an epic way to bring shareholder value since announcing pea results. They lack transparency and barely communicate with their shareholders via press releases or corporate updates. Shame on Kearney and this Mickey Mouse operation he’s running …
Mr Kearney is the CEO of LBRMF and the Chairman of AYM. One could be hopeful that he could leverage synergies across these companies and the industry to get Houston back into production. Again…..Hopeful.
When trying to connect dots between AYM and LBRMF, AYM is the big red flag in all of this. They have been sitting idle on Parys Mountain for over 30 YEARS, and now milk investors with Grangesberg. The CEO recently said that Grangesberg couldn't open in the next four years, minimum... and I don't think Parys will ever re-open.
The resident middle-man on the AYM board comes off as a huckster type, and others see it too..
I'm optimistic about LBRMF Houston Project, but not completely free of skepticism.
They are talking about what to do with the 12% interest in LIM on Anglesey mining chat boards. Anglesey has acquired a larger share of one of its 2 other mining investments. Funny how their opinions on what should move forward or sold of Anglesey assets, pretty much opposite of what we hope for. Again, part of my concern, a lot of expenses, salaries etc. going on with no income as of yet, but an operation that has been running in recent years cannot seem to get done. But they seem excited about some new young people at Anglesey. Again, would like to see at least our website updated and maybe conversations about replacing board member that recently passed away. At a minimum to let people know the lights are on, and someone is home.
.
https://www.angleseymining.co.uk/anglesey-acquires-a-further-29-8-of-grangesberg-iron-ab/
https://uk.advfn.com/stock-market/london/anglesey-mining-AYM/share-chat?page=1193&xref=chatnav_i_0_b
https://www.lse.co.uk/ShareChat.asp?ShareTicker=AYM&share=Anglesey-Mining
TIOC:COM Iron Ore 62% Fe Futures $122.33,1.07 (+0.88%)
https://seekingalpha.com/symbol/TIOC:COM
Thank you for all of the great information, Bobble. It’s appreciated, please keep it coming!
Goldman said it was “most positive” on 62% fe and high-grade iron ore, as well as coking coal, due to an expected increase in Chinese steel production.
https://www.fool.com.au/2023/01/13/6-asx-mining-shares-just-upgraded-by-brokers/
Iron Ore 62% Fe $121.26s +0.24 (+0.20%)
https://www.barchart.com/futures/quotes/TRF23/opinion
Iron ore hits new six-month high
https://seekingalpha.com/news/3923969-iron-ore-hits-new-six-month-high-on-china-demand-optimism
Iron Ore 62% Fe $121.02s +1.36 (+1.14%)
https://www.barchart.com/futures/quotes/TRY00
Prices for iron ore cargoes with a 63.5% iron ore content for delivery into Tianjin extended their rally to above $120 per tonne in January, the highest since late June, amid signs of low supply and continuous measures to bolster demand. Major Brazilian producer Vale stated that export levels from the country dropped significantly due to heavy rains in the country, after lamenting that iron output for this year should be flat compared to 2022 at 310 million tonnes. Data from cargo surveyors already show a decrease in arrivals to major steel producer China, driving blast furnaces to bid heavily for the input ingredient. Meanwhile, China reopened the border between its mainland and Hong Kong to cement its transition away from its zero Covid policy and raised hopes of higher economic activity. On top of that, commercial banks agreed to extend $162 billion in new credit lines for private developers, while the PBoC continuously injected liquidity into the economy.
Iron Ore
Iron Ore 62% Fe $119.66s +2.25 (+1.92%) 01/10/23 [COMEX]
https://www.barchart.com/futures/quotes/TRY00
https://www.nasdaq.com/articles/iron-ore-climbs-above-$120-t-as-supply-concerns-boost-support
Decent volume at 9 today. Bottom and time to go up again?
Company Registration Australian Securities and Investments Commission (ASIC)
Australian Company Number (ACN) 652663066
Company Name LABRADOR IRON PTY LTD
Company Address Australia
Company Type APTY - Australian proprietary company
Company Class LMSH - Limited by Shares
Company Sub Class PROP - Proprietary other
Company Status REGD - Registered
Registration Date 2021-08-09
$LBRMF: Cyclone Metals acquiring Magnetite ORE from Labrador-IRON
Any connection with us ????
Lemme know.......... thanks
https://smallcaps.com.au/cyclone-metals-acquires-worlds-largest-undeveloped-magnetite-iron-ore-deposit/
GO $LBRMF
The tree clearing is visible on Google Earth and lines up with completion timelines on GE.
Thanks again bobble for bringing some needed enthusiasm to the board!
https://imgur.com/a/IbqM0V5
The economic analysis confirms a positive economic result for the Houston Project PEA at the
base case benchmark iron ore price of US$90/dmt. The summary of the results of the cash
flow analysis is presented in Table 22-3.
TABLE 22-3 CASH FLOW ANALYSIS
Labrador Iron Mines Holdings Limited – Houston Project
Item Units Value
Pre-tax NPV at 7% discount $ million 123
Pre-tax NPV at 8% discount $ million 113
Pre-tax NPV at 10% discount $ million 93
IRR % 39%
After-Tax NPV at 7% discount $ million 120
After-Tax NPV at 8% discount $ million 109
After-tax NPV at 10% discount $ million 91
IRR % 39
Payback years 2.6
Note: the cash flow analysis is at the base case benchmark iron ore price of US$90/dmt.
The undiscounted pre-tax cash flow is $240 million, and the undiscounted after-tax cash flow
is $234 million. The pre-tax NPV at an 8% discount rate is $113 million and the after-tax NPV
at an 8% discount is $109 million. The pre-tax Internal Rate of Return (IRR) is 39% and the
after-tax IRR is 39%. The after-tax payback period is 2.6 years from the start of operations in
July of Year 1.
At recent benchmark iron ore prices of US$160/dmt, adjusted for assumed 50:50 price
participation above the base case benchmark iron ore price of US$90/dmt, the pre-tax NPV at
an 8% discount rate is $696 million and the after-tax NPV at an 8% discount rate is $459
million. The pre-tax IRR is 233% and the after-tax IRR is 209%. The after-tax payback period
is 0.9 years
JOYCE LAKE PROJECT
Century Iron Mines Corporation (Century) has filed a Project Description and Registration
document with the Government of Newfoundland and Labrador, for its proposed Joyce Lake
Direct Shipping Iron Ore Project. The Joyce Lake Project is situated in Labrador,
approximately 25 km east of LIM’s Houston deposits, and 20 km northeast of the town of
Schefferville, Québec. In a 2015 Feasibility Study, the Joyce Lake project was reported by
Century to contain 17.7 Mt of Proven and Probable Reserves at an average grade of 59.7%
Fe. A target production rate of 2.5 Mtpa over approximately seven years was proposed. The
project plan for Joyce Lake described in the technical report indicates road transportation of
iron ore products through the Houston Project (south of the Houston 3 pit) to a rail loop to be
constructed just north of the Menihek Hydro Dam location, on the east side of the TSH Railway
According to LIM, as per the standard practice of the DOEC, the Certificate of Approval for the
operation of the Houston 1 and 2 Project will be issued upon the commencement of
construction. Similarly, the operating permit for the Houston Railway Line will be issued by the
Newfoundland and Labrador Department of Transportation and Works, following inspection
and certification of the completed railway line.
RAIL SIDING
The Houston Project proposes building a new rail siding approximately two kilometres
northeast of the historic Redmond pit, adjacent and parallel to the TSH mainline track. The
rail siding will include gates for controlled access, a truck scale, fuel storage, storage shed for
light maintenance, surface water management, a train loading area, and stockpile areas for
lump and sinter fines products.
The Houston Project rail siding will connect to the existing TSH mainline track by switches
located at the north and south end of the siding. The siding will consist of two parallel tracks
for loading and rail car movement, as well as a southern end stub track for switching. The total
amount of track to be built is approximately 3.3 km, including five switches. The loading area
is approximately 1.2 km long and is designed to accommodate 82 iron ore gondola cars with
the parallel track holding the remaining cars.
Tree clearing for the Houston Project rail siding was completed in 2014. Construction of the
rail siding and associated infrastructure is proposed to take approximately four months with
completion in July of Year 1. Overall, the siding area earthworks has been designed as a
balanced cut and fill.
The QP recommends consideration for using the Redmond property rail right-of-way for the
Houston Project’s rail loading operations. Although a longer product haul is required
(approximately 1.5 km greater), the Redmond property rail right-of-way was formerly used for
loading iron ore trains and includes a rail loop at the end to turnaround, versus the current
proposed operation, which requires the train to be split multiple times. The improved
efficiencies in loading operations, along with potentially lower capital cost building off an
existing rail bed, would potentially offset the additional cost of the incremental truck haul.
Thank you, Bobble. Great information.
I know that one efficiency of the initial announcement with Skully Royalty was that they could use/share existing infrastructure such as rail lines.
Both are right. The development plan for Houston is relatively simple. The major component consists of constructing an 8 km gravel road, including a bridge over a river crossing. The new road will connect to an existing road located near Redmond Mine, which leads to the Silver Yards facility
It is also planned to construct a new rail siding near the Houston Mine. When the rail siding is complete, it will be used in conjunction with the Silver Yards rail siding to increase train loading capacity up to approximately 3 million tonnes per year, and will reduce the operating cost of overland haulage from the Houston Mine to the rail head.
Also read about permitting already completed
http://www.labradorironmines.ca/project_houston.php
They weren’t building a rail line I believe They were building an access road to shorten the time to get to the rail line.
Maybe I'm off my rocker, but here's a thought. While I was reading the Iron Ore in Labrador document that Bobblheadtwin posted the link to I was studying the map on there that showed the Labrador Mine, in red, showing it is an actual mine.and then there are four or five "Iron Ore Projects" North of the Labrador mine. One of the big costs, if I remember from the PEA was building the rail line. Looking at it from that point of view, why would I spend a crap load of money to build a rail line when I can wait a little bit and someone else is going to have to build it right next to me.
I compare this to having electricity put into an undeveloped area. I used to have a hunting property that the closest electric pole was a couple of miles away. I checked into getting it to my property and it was going to be $30K-$40K. Not happening for me, so I bought a generator. Over the next couple of years 2 or 3 people in between me and the electric poles had it put in on their property. I ended up selling the property but the last time I checked, because of how far the poles had advanced, it was only going to cost $9K to have it run out to my place.
Just a thought.....
https://www.cbc.ca/news/world/u-s-military-mining-projects-canada-1.6649522
A good read. Could be a factor in the delay here.
The stock price should climb on any/all of the aforementioned announcements and developments. IMO.
All good points and insights Bobble and Believe. I think we all can agree that the business model looks strong if they can get back into production.
A strategic investment partnership is key. The announcement with Scully Royalty was exciting and made good business sense but seems to have hit some unforeseen roadblocks.
I would say that best case scenario for us all is that they secure their strategic investment as quickly as possible with whomever, complete their final business analysis in 2023 along with debt financing and offtake agreement, and then ultimately return to production in 2024.
Fingers crossed.
Good Points, I invested 4 yrs ago and still holding, don't need to buy anymore.
As you mentioned, there are big players in the area. I don't know about mining numbers, but would be good to understand that part of the industry, but I do know there is always politics involved in every industry.
There was once this successful mine called LBRMF 12 yrs ago, but have not been in the game for awhile, and are looking very good to come back into the industry with very low cost.
It is literally a gold mine as we all see.
How does LBRMF go about this.
This is the million dollar question.
You have brought up lots of logistics about this mining industry in this area.
Its probably very different logistics and politics in other places all over the globe.
Just saying.........
The Players, First up is Joyce Lake DSO Project Century Global
Look at costs to open, mine life, total tons of iron over life of mine, estimate costs per ton,
Compare this to LBRMF
https://www.gov.nl.ca/iet/files/22445-Mining-in-NL-Final-for-Web-Oct-24.pdf
http://centuryglobal.ca/projects/joyce-lake-attikamagen/
Rainmaker and others, I am not a numbers person when it comes to company pricing and valuations. I know just enough. What I try to do is add to discussion so those who know more can add their views. I have owned shares for over 2 years. I will hold LBRMF until price reaches my goal or until I change my view. I have added to my holdings in LBRMF over the last 2 years. I realized when I bought this might take years to happen if at all. When researching LBRMF I look at others in the area, their costs per ton, opening costs, financing costs, was there offtake agreements, who are the agreements with, etc.
At this time, I have some confusion as to why this cannot get completed. When you look at others in the area, IOC, Tacora (Scully), Tata, Champion, Joyce Direct Iron Inc, and others, and look at them for comparisons this might be the lowest cost out there for a shovel ready mine in 12-18 months' time let alone over 12-year life of mine. What am I missing. We have existing assets and infrastructure, permits, future next mine assets, beneficiation plant permitted, existing rail, and cleared roadway for future rail. PEA was at $90, the price has only been under that price for 12 days since June of 2020 and the average has been well over $110.
My project for right now is to post other miners in area, especially proposed projects and estimated costs. I appreciate comments, I am trying to open up discussions on what might be next, and to be better informed, I would love a numbers person or persons to post their opinions, but I do not respond well to people who do not play nice. so please play nice, otherwise I am happy to take my marbles and go home.
Thank you all for the great information and dialog!
With those historic stock prices under operation, would you need to divide them by 4 with their current structure of 164M shares if/when they return to production at some point?
I know that I’ve read some where that they formerly had a $500M market capitalization.
September 2010 high $5.95
April 2011 high $15.43 Barchart ($14.74 on other sites)
2012 high $8.24
2013 high $1.75
As at September 30, 2010 the Company had 43,558,380 common shares outstanding, 2,010,320 stock
options outstanding and 360,711 broker warrants outstanding.
Documents exist for the company on SEDAR from 2007.
Great work, bobble. Just out of curiosity, does anybody know how many shares were issued in the 2010-2012 timeframe?
If they do get the funds now nothing will happen to this pile of rock
Article from opening of new facility 2011
https://www.mining.com/first-iron-ore-train-leaves-schefferville-in-30-years/?fbclid=IwAR3jCa__wjleFhxuxrghONMwU3KKpj13Ndca29ns6ltF2p8BNmNtRDzd0rI
The construction of the mine 2010
https://www.dexter.ca/dexter/project/lim-schefferville-project
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PUBLISH DATE | TITLE | PERIOD END DATE |
---|---|---|
11/12/2021 | Quarterly Report - Disclosure Statement | 09/30/2021 |
11/12/2021 | Quarterly Report - Management's Discussion & Analysis | 09/30/2021 |
11/12/2021 | Quarterly Report - Financial Statements | 09/30/2021 |
08/13/2021 | Quarterly Report - Disclosure Statement | 06/30/2021 |
08/13/2021 | Quarterly Report - Management's Discussion & Analysis | 06/30/2021 |
08/13/2021 | Quarterly Report - Financial Statements | 06/30/2021 |
06/30/2021 | Annual Report - Disclosure Statement (Amended) | 03/31/2021 |
06/29/2021 | Annual Report - Management's Discussion & Analysis | 03/31/2021 |
06/29/2021 | Annual Report - Financial Statements | 03/31/2021 |
02/12/2021 | Quarterly Report - Disclosure Statement | 12/31/2020 |
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