Forum Topics Things to be wary of in mining?
Timocracy
Added 3 years ago

Rode my bike past about 35 "friendly" police officers outside the ICC in Darling Harbour, Sydney this morning.

Did a small bit of digging (pardon the pun) and discovered (ha) that there is a "Mines and Money" IMARC event today. A whole lot of small cap mining companies getting together to spruik their ventures.

Info has been taken off the ICC's website and it appears as though a bunch of protestors were planning some sort of action. Tis a bit windy today so they might try again later in the week I suppose.



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slymeat
Added 3 years ago

If, as with myself, you were wondering what the stages of proof are for a mine, this small post may help.

Usually four stages of proof are undertaken which represent the general levels of certainty reached. Certainty increases, and risk decreases, as you progress through the stages.

  1. Scoping (or Conceptual) Study.
  2. Pre-feasibility (or Preliminary) Study (PFS)
  3. Definitive Feasibility Study (DFS) and
  4. Bankable feasibility study (BFS)


And for a more detailed dig see:

Your guide to mining feasibility studies

The Retail Inverstor’s guide to all things Pre-Feasibility Study

And for a living example for a mine that has been taken through to the BFS stage, have a look at this brief article from Magnis Energy.

Bankable Feasibility Study-what-why-who

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Hackofalltrades
Added 5 years ago

Okay, another thing that just came to mind. 

How are mines typically funded? 

Are they usually funded through a bonds issue, or more commonly through a share issue, which obviously dilutes shareholders. What kind premium to the share price are these typically offered on? 

Does this process also usually happen for the drilling required to turn an ore body from a few good drill results to an inferred and probable resource? 

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BkrDzn
Added 5 years ago

Combo of project debt funding and equity. A bond issue is rare. Debt is sourced from a bank or specialist resource debt funder/private equity firm. Typical ratio is 60% debt + 40% equity. Be mindful that the capex number a company promotes isn't always the all in cost to positive CFs fro operations, usually there is an additional working capital component i.e. cash burn through construction and commissioning + interest payments on debt drawn if not capitalised.

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Hackofalltrades
Added 5 years ago

You guys are awesome! 

Thank you so much. 

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