FCR – What Next – Apples and Pears?

There’s plenty to do, but at the time of writing the share price has retreated. I am guessing that this is due to the market:

a) Waiting to find out what the next steps are from the management team now that the maiden JORC has been released

b) Waiting to see the impact of any fund raising on the issued share capital.

In regards to a) FCR will be looking to produce a scoping study. This should not be a long winded activity but will cost money.

In regards to b) The share options issued to the chairman Colin Bird in November 2017 may well get executed.

I could not find any restrictions on selling the shares purchased at 0.0005 last November into the market, but that does not mean they do not exist.

However if I were a holder of those options where permitted I would be selling into the market, and recycling the funds raised back into FCR. But that’s just me.

FCR needs the money to make progress via more studies and drilling, and with progression comes increased confidence in the resource estimates.

We need to get inferred resources moving along to indicated and measured and then I would expect a rerate of the Toral asset. This will also allow an improved apples with apples comparison with peers.

Although the FCR logo says ‘exploration’ it’s actually a exploration and development company. That does not mean a production company imo so I would expect a deal on the asset to be made further down the line.

FCR – Starter for 10 – Peer Comparison

FCR issued its maiden Jorc today.

The  mineral resource statement has also been published – here.

 

Initial fag packet comparisons on the Video. I’ll also review further on the weekend and add some more information.

FCR – Peer Comparison – PNX Metals (ASX)

I read the PNX Metals presentation from December 2017 earlier today. It’s very interesting for sure. It covers a Zinc-Gold-Silver project in Northern Australia.

Based on a Zinc price of US$2,570 it claims a short 15 month payback with a $53 million capital investment, and near surface deposits.

This requires 18,300t Zinc, 14,700 Oz Gold, 1.4Moz Silver – equivalent to 39,100 tonnes ZnEq metal in the ground (%grade * tonnage) to be mined per annum.

With those economics I would suggest there will definitely be partners joining up to bankroll this.

I like the way PNX have presented the Project Snapshot below. Hopefully FCR can present similar in the not too distant future.

PNX also claim it is undervalued relative to peers. Latest snapshot is Aus$13.9m (GBP equivalent of £8m)

PNX ZnEq tonnage – metal in the ground – is much smaller than Toral – based on the Toral NI 43-101.

Hopefully the FCR JORC 2012 for Toral due this month (January 2018) will improve on the NI 43-101.