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Tertiary Minerals (TYM.L): Tantalum & Mine exploration

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I have owned this stock for many months, waiting for it to be discovered. It is happening.

 

MarketCap: Pds.xx million = x.xmn shs x 12p

 

Weekly chart ... update - 7.aug.2007

bigyh3.gif

 

ProactiveInvestors recently published a report: Excerpts below

 

Tertiary Minerals is a bit of a strange beast on the Alternative Investment Market (AIM).

 

The company’s share price performance, including a recent run up to 9p, has been less than spectacular since coming to the market 6 years ago. However, the company has made some pretty interesting moves over the last year which until recently the market had more or less ignored. Tertiary is a diversified exploration mining house, with projects in Northern Europe and Saudi Arabia looking for a wide array of minerals including gold, nickel, diamonds, base metals and rare earth metals. Last year Tertiary spun out its diamond prospects in Finland into a new company called Sunrise Diamonds, but retained a 26% stake.

 

Since spinning out Sunrise Diamonds, attention has focused on Saudi Arabia where the company holds the exploration rights over the Ghurayyah Tantalum(Ta)-Niobium(Nb)-Zircon(Zr)-Uranium(U)-Rare Earth Element(REE) deposit which contains the worlds largest known deposit of Tantalum.The exploration license is valid until January 2007, is renewable for a further 9 years and also gives Tertiary the option to acquire a 50 year mining lease.

 

The deposit is located in the north west of Saudi Arabia and SRK consultants have estimated a JORC compliant contained Inferred Resource of 385 million tonnes grading 245 grams per tonne (g/t) of Tantalum pentoxide (Ta205), 2,840 g/t niobium pentoxide (Nb205), 100g/t uranium oxide (U308), and 8,915 g/t zirconium oxide based on 13 reverse circulation (RC) drill holes. Ghurayyah is near surface and open at depth – characteristics that give weight to a low cost open pittable mine with low strip ratios. The ore is uniform and consistent throughout the area drilled which also leads Tertiary to believe the project has very compelling fundamentals. ..

All the above factors give weight to a relatively modest capital expenditure (US $100 million approx.) and fairly quick pay back (3 years). The IRR is expected to be in excess of 25% which in conjunction with a 20+ year mine is very healthy.

. . .

 

Tertiary is still some time away from moving to production in Saudi Arabia; assuming the mine goes ahead. However with a market cap under £5 million the risk-reward ratio for Tertiary is noteworthy compared to a great deal of its peers.

 

@: http://www.proactiveinvestors.com/register...article.asp?TYM (needs password)

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TYM's long term chart is looking interesting again:

 

- from around 9-10p

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TERTIARY MINERALS was suspended on AIM since Jan 10

 

I've read the official notes, but does anyone have any additional info or comment on this?

The resource had a strong uranium element, but a recent note suggested the Saudi licence did not include uranum production.

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Tertiary minerals have had their licence suspended, due to one of two reasons I believe:

1/- work commitmnt not upheld, too little to late

2/- the uranium content is low but significant, no licence to mine uranium, disposal may be an issue.

 

the lack of news, nothing since Feb, is not comforting, an update, even if negative would be appreciated

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You can check here:

http://www.advfn.com/cmn/fbb/thread.php3?id=2028936

 

there may be updates faster on advfn, given the larger number of TYM shareholders that hang out there.

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What is the maximum period which a company can remain suspended before it is delisted?

 

If it is 6mths mid July will be an interesting time for TYM.

 

Their project in Saudi is definitly world class, I just hope that their Saudi partner has the right sort of clout necessary to make an investment such as this turn to a profitable venture.

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i dont know the answer to that question

 

fingers remain crossed

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Dont give up on Tertiary.

 

The suspension was voluntary, and they can restart trading before the deadline- which I believe is 11 July.

By then, they should be able to get an update and restart trading.

 

I cannot believe that Patrick Cheetham would walk away from the Saudi project without something,

and I would gues that there is a reasonable chance the project will get back on track.

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The co's shares are trading again from this morning, took a bit of a drop - not surprising.

 

A few highlights:

- the deputy minister for mineral resources has suggested the company apply for a new 5-yr exploration licence on the basis that they won't process any Uranium.

- Ghurayyah's value is now mostly in niobium, which has tripled in price BUT

- accounts have made provision for a write-down on Ghurrayyah

- the company is looking at acquiring a stake in another niobium project

 

Comments:

- on first reading this seems to be a 'just-in-time' announcement, made because of the AIM listing rules would require a delisting if the recent suspension had not been lifted in the next couple of days. There may not even be a change in the status of the licence, so it may still not get granted. One could say this is corroborated by the write-down provision and the note about a new project.

- however the feasibility study has been accelerated with the jv partners

 

It seems to me that the risk has shifted somewhat. As the deputy minister has invited the company to apply for a licence, it seems that he and his department are onside for the time being. During this further uncertainty, and now the shares are tradable, it might be worth taking advantage of s/p weakness for a punt. I don't have access to level 2 data, maybe someone can confirm, but there looks like there's a buyer who is grabbing some of the excess.

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(from the Advfn thread):

 

KatyLied - 9 Jul'07 - 08:01 - 1954

 

Obviously good news that TYM is back (as opposed to being dead and buried). The reason for the suspension is clearly stated as irregularities by TYM over the license/renewel application. TYM deny they did anything wrong, but appear to have decided that contesting that, had no future. So a whole new license (different terms) is being negotiated instead. Which they don't have yet and although optimistic, are also taking the precaution of preparing to write off the entire Saudi asset. Needlesstosay, the share-price is unlikely to go up while that situation endures. Clearly, not producing a uranium product is a major issue, that has still be nailed down. But they were advised of that before the old license expired. Nowhwere in the releases this morning do they claim 'uranium' was the reason behind the loss of the old license. Equally, they have not stated what those license 'irregularities' were (which is IMO a bit disrespectful to shareholders).

 

The Saudi partners will now own 50% of TYM "saudi" ltd.

Haven't checked, but that must surely be more than

before? So they seem to have done OK...

 

==

See: http://www.advfn.com/cmn/fbb/thread.php3?id=2028936

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Big buys in the last couple of days. Price looks cheap...

Saudi is a difficult place to work!

 

The chance of recaiming their licence is going to be slim, irrespective of who their partner is. If you mine the tantalum, niobium and other non radioactive metals at gurayyah what will you do with the U rich tailings???

 

Their Finish properties look like they have merit, but kinda defeats the purpose of splitting out Tertiary from Sunrise, remerge, save on broker, accounting, lawyer and listing fees etc and get back to doing what they are good at, exploring in the sub-arctic.

 

Agree cheap, but they will be draining cash quickly.

 

As an asside employee options were issued this week, and this after a 6 month suspension and quite possibly losing the largest tantalum mine in the world, hmmmmm. . . .

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As an asside employee options were issued this week, and this after a 6 month suspension and quite possibly losing the largest tantalum mine in the world, hmmmmm. . . .

 

I was lucky, I managed to cut my position in half after the suspension, and before the slide.'

 

I will considering buying back in, but not yet.

Selling volume needs to dry up, and gthe price to stabilise. And I would like to have better insight into

the valuation

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