MMA – Maronan Metals Limited
“Dear Red Metal Shareholder
This video came out two days ago.
This is a very good promotion of Maronan.
Highlights from the Simon Bird Youtube video.
This Preliminary Economic Assessment is only based on 15% of Maronan’s resource.
We are set to become one of Australia’s largest silver producers
Processing on site or toll milling at a nearby facility ie Rocklands. Both options show strong economic returns, both based on 10 year underground plans. 5.5 million silver equivalent ounces per annum.
The standalone option is my choice! It eliminates Glencore from the deal. What about you, make your voice heard.
Simon says the preferred option is the standalone plant on site. Confident the starter zone is only the beginning and the ore body will continue. Recently 98% was converted from inferred to indicated.
$266 million capex. Assumes All in Sustaining Costs of $30 an ounce equivalent. Big upside.
The Net Present Value of Maronan based on this scoping study was given as $377 million. However Simon says at the end of the video that the silver price is currently 20% higher than the price they used for the scoping study. So Net Present Value is $452 million.
IRR, Internal Return Rate (annualized percentage return) of 37%. Ensuring a payback of four years. Outstanding results just for that small starter zone.
Its a 40 year old discovery.
I have to say this time, well done Simon. Looking smart and focused.
Four options –
1. continue drilling to extend beyond the starter zone.
2. Pushing ahead with the definitive feasibility study.
3.Build an access and a decline after the mineral development license comes through (this side of xmas hopefully)
4. Strategic partnership with full funding to convert this discovery to a mine.
My thoughts: No more drilling. I can’t bear another year of just drilling, people will get bored and frustrated and the share price will drift lower like it did since the IPO.
I’d like to either push ahead with the definitive feasibility or get cracking on some building, it will be inspiring to see the access and decline made and progress starting.
I’m cynical of the deals being made with big funders. Put them to us and let us decide on them. Not a vote that the largest shareholders will win. Put a vote to us where the majority of votes decides whats best for us.”
MMA DAILY
