Capital risings two come on our radar today and I think they both have the theme of wanting to get some money in the door before the quarterly drops and someone sees how little cash might be there Tuesday we will uh name and shame those who report at the end of quarterly I'm not going to do this story Justice only talking about it in in this brief Defiance and back then they had sales agreements worth over uh one billion dollars the good chunk of those sales agreements went to a company that had no revenues and assets of only seventy thousand dollars Money Mart is Friday 28th that Bloody week is flying and oh geez I'm excited for the weekend j-day Trav we are repping [Music] yeah there'd have to be some big demand because bloody shipping and packaging merch is a big job but if the demand's there we got some hats coming I haven't told you yet but I I um I have done some hoodaroo hats have a bloody look at the bastard we've got long sleeves oh God get it out ready for diggers diggers are ready I like it man you're not wearing business shirts mate I hear you've got um got a few acting offers come your way after uh after a little skip video went up yesterday yeah I think Carl from channel nine give me a call this morning buddy yeah we're all over at part two it's just out you do well on home in a way I reckon home alone time to grade my talent like that JD farmer wants a wife he's more a reality TV yeah part two of the uh poor quarterly excuses is out on LinkedIn and Twitter and YouTube the translations to the Layman yeah bloody moon Trav got the acting boots on there's what three more to come Trav yeah we've got one every day until the last day of quarterly season so we've got uh one today's come out we've got one on each day of the weekend and then Monday's the finale so five one minute Clips to come of uh quarterly translations give them a like on LinkedIn Twitter Instagram wherever you are let them go it's well on brand traps in a suit I'm in high Vis with uh bloody of vape and Road One fits in perfectly I don't know about you guys but I I like quarterly season I think it's exciting we see all this stuff and we it creates great content we're gonna have a sort of fun episode on Tuesday to come I'm sure well Monday is the last day that companies can report their quarterly exactly and we'll be uh Tuesday we will uh name and shame those who report at the end of quarterly but also we'll see it has how many report aftermarket today yeah seeing if they can sneak it out of the news soon but it won't be getting past money in mine so I don't know Friday's New Year's Mondays news for us so we've got out we've got our eyes on the cash balance at plenty of companies and that sort of ties in with what we're going to start the show with capital raisings as well as a few resource statements Ultra horses mate Maddie's got Partners to introduce now no we're not doing them on this one oh aren't we yeah we did it yesterday oh sorry mate sorry so I reckon we'll start with a bit of an over and run through a couple Capital raisings that we're saying what else have we got we've got a bit a bit of macro touching online town carnaby Trev you've got a bit of a deep dive coming up oh little one yeah yeah we're going to be live forever caladis gets a shout so let's get straight into it capital raisings who are we seeing guys two yeah two two come on our radar today and I think they both have the theme of um yeah wanting to get some money in the door before the quarterly drops and someone sees how little cash might be there and the two that came on our radar number one strand line now this is a really interesting one right they've been ramping up their Coburn mineral Sands project uh in my head it was a little bit of a poster child people had sort of pointed to it as someone who could build a mine in an inflationary environment and do it on time on budget and now we see as they're ramping up they're raising 30 million bucks so it's not a good sign there CEO also resigned during the week which is not a good sign during ramp up no I think that's in the skip video yes there's some inspiration we weren't inspired by that very specific stories but um but yeah it's pretty um yeah we'll wait and see what comes out of the quarterly there but it's I hope we get a bit more color when that happens and doesn't look great yeah and Centaurus is the other one so they're raising 35 million potential to Take 5 million in overs at 73 cents which is almost a 14 discount so we're expecting the the DFS later this year in Q4 we've that's been delayed quite a bit so I've been waiting on that one a while now and then yeah final investment decision to come in Q3 of calendar year 24. so yeah the other thing I'm looking out for with these guys is any potential off takes now that they've bought back their their off-take rights from Vale to see what they do on that front would be interesting and yeah well definitely a better percentage than the other nickel sulfide uh will produce overnight Centaurus are a developer so these was at what 13.6 discount and we know that uh nickel Salford nickel prices at the moment are not getting the flavor they were a year or two ago so yeah at least did a bit better than panoramic on the bloody discount side yeah did you guys see panoramic come out oh yeah pretty close to that Bloody raisin price weren't they down 40 yeah big volume as well I think it was down down 40 and more heavily diluted now and isn't that just a big bloody Hill to climb to get back to where they were a week ago yeah even more difficult now they didn't drop below the the raise price which is which is interesting it went bloody close yeah they tested it and the trading volume was just huge as as you'd imagine it was the most amount of shares turned over in in quite a while fright boys Carl Carl we're getting a lot of info about a lot of requests for Carl coming our way that was a bit in the news uh possible New South Wales royalty changes yeah it's one of those ones with a with a Twitter following I think that's where we're getting the um the interest from so like you said potential change in the New South Wales royalty so they might be taking a leaf out of queensland's book who did something in over the past year so the government said they're Consulting with 16 different mining groups across the state and they kind of want to get this done before the state budget is out which comes out in September for New South Wales I'm I'm sure the way that they'll sort of frame it is you know with a with a focus on household power prices and maintaining low power prices for individuals as well as sort of you know taxing coal for being coal they said they won't do anything until the the price Gap that they have comes off so that's expected to come off about Midway through next year and naturally you're seeing a bit of pushback from the industry the the kind of way the industry the miners respond to this is we don't want a repeat of what happened in Queensland and just for a bit more info on what happened in Queensland as you've seen many mining companies say they're not going to invest any more in the state because that that you know rules and the goal posts sort of shift after the fact and that's not something that that mining companies like well right next one lion Town been a bit out of the news since the big album I'll Bid And The Rise and everything it's all gone a bit quiet and they're just uh constructing away their Kathleen Valley lithium project I feel like we talked about them in our first ever episode and we've barely spoken about them since except in relation to the tender to the to the tender so look nothing nothing too much to report they're still saying first production mid 2024 so they anticipate awarding the underground mining contract next month in August so that should possibly only weeks away so uh developed put in their announcement that they're not in the tender race anymore so it is bar minko and bernkart who are going for possibly the biggest underground mining contract in Australia because the from what the comments are that the scope of that contract has been sort of growing throughout the tender process so she's going to be a big a big hum Dinger so look they've been they've been uh with all the surface construction and the pit and everything they're getting some there is some stockpiled potential DSO material so they said they've moved one half million old cubic meters of tidal material and some of that has been stockpiled as potential DSA but they haven't yet made it a decision they're going to make a decision this quarter on whether they're going to go down the road of selling that DSO so talking about or talking about the contract crushing surrounding contract all sorting as well to sell it because it needs to be sorted to get all the iron and out of it to make it a salable DSi product so not yet we don't know how much DSi there is and we don't know if they're going to actually sell it or not yet still waiting but there is that option for a bit of early Revenue Forum so yeah really staggering that the valuations I mean it's come off a little bit but um I mean you've still got ramp up risk right and it's still a while until you get first production yet it's um it's valued you know like the market caps half the EV of pilbra I'd reckon ramp up risk as well would be heightened with this operation due to the scale of it because an underground mine trying to get I think it's pretty much three million ton straight out and then progressing up towards four million so I'm not sure if it's three million time in the first year but that's the sort of before they get that four million ton doesn't come till about 28 or 20 2028 to 29 but yeah three million ton straight up from an underground mine it's going to be a plenty happening there so you reckon helping miles going to come in with another bid mate or do you reckon that's cool oh they I have they haven't said no and they've gone away have they so they're it's there's obviously some wheeling and dealing cooking in the background to see if it's going to be Albemarle taking over long town if they're going to JV with a local partner like uh in rez or a jaina or someone and really lock in Kathleen Valley and whatever Downstream if they're gonna because they're going to progress that study about the downstream at Kathleen Valley although tied in with another company so I think there's still some news to play out there yeah the commentary from uh Chris Ellison on the the latest men res quarterly was really really fascinating was it you know an entertaining listen and just on the the downstream he really emphasized the you know that there isn't always a need for these mining companies to to go Downstream and he was you know pretty adamant that in their case minres are pretty good at mining you know producing The Rock but they don't necessarily have to go all the way Downstream so what I think he said he's exactly backwards were or hopefully exact it's cheaper for them to get a full Plant built and constructed in China and then shipped over to Australia to install it then building it all here by themselves fascinating because China can do it at half the price so another quick one I wanted to touch on carnaby so the quarterly came out no resource yet which is what we're looking out for so they've got the greater Dutchess coffee gold project about 70k Southeast amount Isa in Queensland there was a line that that did stand out in the quarterly the company continues to Target a Q3 release for the maiden mineral resource estimate so back in the March quarter the timeline was extended from Q2 to Q3 to incorporate recent true results received during and subsequent to the quarter so yeah like I said that made and resource is what we're really fixed on with with carnaby and in general the the wording you know company XYZ continues to Target X date is one I really look out for I mean can you really say that you've you've met your target if you just revise the Target and then say we delivered on time there's plenty of examples of that one floating around there's plenty yeah it doesn't always make it okay though I think yeah I think it I think you're right but no companies don't hold themselves to account it's up to commentators to do proper work analysts to do proper work and hold companies to you know what they originally said agreed not what they revised and said are we going are we going to uh touch on that minros invest to call oh yeah at the back end stay tuned everyone we're going to get into some of the juicy things coming out of Mr Ellison's mouth directed towards some of the unfavorable research coverage yeah he did not appreciate trap I'm Keen to hear about this Magnus one it's it's why I've come from a pretty low bay side but what's the story firstly oh the bloody hell are they by the way I know right Magnus energy it's um a really interesting one that I'd heard of before but it hadn't really come on my radar at all so shout out to Patrick guys who uh said take a look at this look at the coral that just came out about this company yeah yeah new little uh man working in the incubator here new new team member of money of mine for a um a period of time we've got Patrick who's a a final year student at uwa and um has volunteered his his work efforts to help us out doing some bit of work here so I just don't tell them that travel will get bloody audited slave labor amazing well we haven't get him a contract he's just helping us out it's just casual not paying Arrangements Legends but like and he said take a look at Magnus so this Patrick shout out to you mate good work and it really uh piqued my interest because Magnus it's just one of those names I've seen thrown around a bit on Twitter I get the sense that I had a pretty strong retail following at one stage you know it sort of feels like one that might have it might have been a targeted strategy to have a retail following somehow though uh it's it's really just avoided us um until now which is which is strange because this is the kind of company I think we would have loved to have talked about sooner and I think in in a nutshell if I were to describe Magnus energy it's one of those EV hype stocks they've got a New York state Factory Imperium three um you know producing battery stuff and then there's not true a much touted Tanzanian graphite mine I'm not going to do this story Justice only talking about it in in this brief defined segment and we've got a lot to talk about today but but here's the story um and it's and it's well documented by the Australian if anyone wants to go through their um Myriad of articles about this company since about 2020. so at the moment Magnus is currently capped at 120 million bucks but back in November 2021 it was nearly a 700 million dollar company back then oh yeah but yeah I know big right and back then they had sales agreements sales agreements worth over uh one billion dollars in Aussie dollars so future production sales agreements is that what we're talking here correct yes okay uh and here's where it gets interesting right it's well reported that a good chunk of those sales agreements were to a company that had no revenues and assets of only seventy thousand dollars at the time I'm just going to list off a bunch of really interesting strange facts about this company there are claims from former employees that the company engaged in alleged drug smuggling Kingpin to act as an agent for the company in Turkey we know that Asic had inquiries into a pump and dump group on telegram on Magnus shares in its 2021 AGM Magnus claimed that it's some of the parts valuation had a potential value of 10 billion dollars which it then had to retract four days later that came from the company in their own ATM a slew of directors began departing the board and as of June this year 14 Executives or directors had departed since 2020 according to court filings the company and its chair demanded the details of 15 hot cop users posting negative commentary of the company including the IP addresses of these users of hot copper Asic has also probed the chair for a purchase of shares in early 2020. a former executive Magnus the BP of sales and marketing publicly claimed there was unethical and possibly illegal conduct at its battery plant and very recently it's CEO of just 10 months David Taylor quit and ASX have reportedly put Magnus on the naughty list reviewing every announcement very carefully now following a pattern of concerning announcements so just an overall real good chunk of positive news coming out of the company far out there's some stories list and a half isn't it I feel like we could do an episode on every one of those points but we won't um and the engine I saw with the hot copper people they were the it was a case that they were trying to get hot copper to disclose the names and addresses and IP addresses of these I think there was 12 users 15 users and again going towards that uh well it's like Publishers being liable liable for defamatory comments of others so we know about that so let's just disregard the the gigafactory thing in New York we're mining guys right uh so let's look at the graphite mine there's a lot to talk about here but I'll keep just one point on 21st of February they came out with an off-take agreement with Tesla for the supply of a graphite concentrate and aam from their Nut Tree Project which doesn't have validated product yet and we spoke all about how long it takes to get validated product right this stock actually sold down on the announcement can you believe like Tesla I know um and the word from our graphite Guru is that you know the market was probably switched on to the impossibility of meeting the timelines in the agreement remember that qualification period for graphite is years takes a long time right takes time to build plan it takes time to qualify it takes a really really long time so what what came out today quarterly today all right let's talk let's talk about the real news what came out today well it would probably help if I also reveal that Magnus was supposed to be doing chunky Revenue numbers by now they've quoted to be doing they should be doing 80 million Revenue in 2022 and 360 million dollars in 2023 and growing all the way to 1.8 billion dollars in Revenue by 2027. assume that comes from that 2021 report from the company this is as reported in in the Australian so yeah um and now we look at the quarterly and the company looks really really sick not like fully sick like that the actual influenza sick it looks unwell yeah right yeah not not yeah pH fat so you look at the cash flow statement right remember we we read quarterlys back to front negative 14 million dollars from operations um for the quarter zero dollars receipts from customers so the total change in in cash balance is down 21 million with only 22 million dollars of cash left and here's the kicker they've got a drawn debt facility of 151 million bucks which in this year the interest rate is so far plus six percent plus another premium of 4.6 which is approximately 16 interested what's the premium on top of that sofa plus yeah it's an additional credit premium on top of the base margin which is staged over time so it's just the way it's structured yeah 16 uh this year on 151 million Aussie um so this year over the next year alone that's over 20 million dollars they're going to have to pay yeah in interest alone secured against the IP you know the battery making IP so so that's so potentially if they have the if they have a similar quarter they'll have zero cash need to raise money without 100 or million bucks debt subsequent to the quarter and they write 150 raises 10 million bucks and that'll flow through into the next quarter all right um but yeah 10 million bucks doesn't doesn't keep the lights on for too long with the cash burn like that and it's just secured against the IP secured against the RP of the company yeah so look I reckon there's a lot more to dig into in this one if we wanted to but I'll let the money miners do their own research the Australian's done a good job on this one so check out those articles another one another one we've talked about a bit boys and another uh ramp up project that is getting a lot of attention is calories they're quarterly out similar similar to Red five similar I guess you'd say similar position due to the debt and everything uh boys what did we take from it yeah they're in a similar phase like you said to Red five and perhaps other companies we spoke about earlier in the week Matty my sort of Outlook is slightly bearish on the company so they raised 23 and a half million after costs over there in the past quarter the cash now sits at 26. debt at 81 so that leaves them at a net debt position of 55 million EV of 165 million so the market cap is about 110. looking forward to FY 24 guidance has been set at between 65 and 75 000 ounces and the midpoint of the all in sustaining cost is Aussie two thousand dollars an ounce so has that come down a bit I remember them sort of you know saying there'd be an 80 000 ounce per annum producer do you know if it's come down since initial forecasts yeah I mean if you're saying that the the stage one because they group it in sort of three stages they sort of class stage one as 75 ish a thousand ounces and that's a stage one it's like a three year thing and then you know the company projects it's on its way to being a hundred thirty thousand hundred and thirty thousand ounce per annum producer when the blue spec comes on because I throw you stage one's back end weighted isn't it yeah that's right they're in the ramp up phase you know I think they did just over 16 000 ounces in the quarter just gone so having a quick look at what the Brokers think um there's a few there's a few Brokers that cover it can Accord have a 65 price Target on it and Euros just updated to a 42 Cent price Target so the Stock's trading at about 19. I still feel some of those numbers seem seem a bit lofty I mean that new guidance number that was a bit of a kicker Euros had to update their production down 17 for fy24 and all in sustaining cost up 25 so I mean it's also worth noting that can Accord and Euros both acted as joint lead managers to the April raise of roughly 24 million that I just touched on before and just digging into some of the assumptions in for instance the canacord report looking at the gold price in US dollar terms specifically they're forecasting over FY 24 2050 and then over fy25 2150 so yeah it's a relatively High assumption for the gold price over over that time period and given that caledus is a high cost producer they've got a lot of Leverage to whatever that commodity price assumption is so it's something we've spoken about with a number of different stocks you know if you're a high cost producer you have the leverage and highly hedged exactly they've only got leverage assuming that they produce more than their hedge dancers otherwise yeah 100 we're going to touch on that more so yeah I mean those forecasts May hold up but just something worth bearing in mind for investors out there they came out with a presentation recently didn't they Jody they did mate so they presented at the Noosa mining conference just last week and there was something they didn't mention in that presentation and it was the Hedge book and it's with good reason they didn't mention it because it's 106 000 ounces hedged at Aussie 2370 roughly so not but not the worst on the market but definitely at the bottom end yeah in terms of price definitely you know it's it's sort of in that midpoint it's not great in terms of volume of uh production it's it's quite substantial it's almost half of you know give or take half of their production up until September 2025 that's hedged and also looking at that presentation a bit further they've got a slide on valuation upside and they use an EV to production chart to rank companies and my first thoughts are looking at this is why is the market valuing the companies in that order and then it sort of takes a few moments to realize sort of while here and there there will be mispricings with stocks there's a good rate reason that companies like Capricorn Emerald Perseus are much closer to the left of that chart than they are to the right and that's because they're pretty healthy margin businesses that have a track record of turning production into actually cash in the bank something else of note with uh with regard to caledus is McMahon's the mining contractor up at their their mine site at the time of the raising in April of this year they converted 10.5 million of debt into equity and as a miner you just you wouldn't take that dilution if you didn't need to do it and sort of make the balance sheet look a bit better lastly on that Noosa presentation six of the 21 slides were on lithium now to me that just feels like a couple too many they do have this this PIRA project that they want to spin out in IPO but given where I think their company's focus should be over the near and medium term you know perhaps feels like a couple too many um so on the sort of positive side of things trying to trying to look on the bright side for the company the the plant is running above nameplate capacity now so it's running at 2.7 million tons per annum the nameplate is for 2.4 they did meet their guidance over the past half year and if they can get through this tougher period that they're now in the The Strip ratio should lower mining costs should fall and then we should see uh you know that hopefully they deliver into that hedge book and the actual realized price improves and it should be become a better margin business so I think overall it's it's quite easy to be bearish on the stock at the moment but it's a pretty tough environment out there and I do hope the guys can sort of put it together and sort of achieve the goals that they've set for themselves in the company because I think that kind of chord no they valued that hedge to be what was it eight cents per share so I think they valued the company in 73 then take eight cents off it to take into account the Hedge loss which got them to 60 there 65 Target the problem with doing that triple in a bit is yeah it is you're not really like you're not really properly modeling the minimum cash balance of the company do you know what I mean like you're model you're modeling it on assumptions that yeah don't show where things get really tight and just how tight they get and in this case that's a big factor yeah to your point Maddie and sort of some of the parts type of valuation they sort of classes as a bit of a liability with a sort of I think negative eight Cent valuation I guess and that just yeah obviously chops off eight percent of their valuation of the stock what are you what do you reckon the best move for them is I know we've talked about this before and I'm not sure of the flexibility and able to do so but would it be to grind out the two years to get rid of this hedge or try and re-negotiate the terms to uh spread it out over a longer duration I don't know because you need to know the terms of spreading it out in order to know if there's a good idea to do that or not um I think the real takeaway for caledus is this is an example of um a marginal Project funding its operation with like extremely debt heavy it's um I think it was 80 debt funded right and when you do that it works out wonderfully for the equity if um everything goes right but you're super super vulnerable um if if things don't go quite right and um and does that that hedging comes out of the debt funding is that usually condition of the debt funding is that why they're so beautifully hedged yeah yeah it typically like yeah like in this case their debt facilities with Macquarie Macquarie do both the hedging and the project Finance facility and to sort of come part and parcel um but yeah you can do them separate and all that sort of stuff but but the the Hedge book is a term of the the debt yeah they're right in that Maddie so are the lenders then getting upside on that gold at all because they're because they've hedged it at that price is there is it just calendars that lose out on the Hedge how does it work on the lender end yeah they get upside to that hedge price to the gold price or not so hedge books with Macquarie but the way to think about it is Macquarie you've already like hedged out their exposure as well so there are other parties and they they make a margin on that um on that hedge book and they've looked they would have locked in that margin yeah ready to go to a whole lot it's one of those ones that's uh every quarter is got a lot of eyes on it to see how it's going to get out of this position isn't it absolutely mate yeah and I thought it'd be this would be the great time mate we should trial a new segment uh Travis top twice where's a bean no no oh yeah it's just that's just one we're throwing in there ready to go don't worry um so this new segment I reckon we call it great quarterly sprays and I reckon we've got a we've got to listen to Chris Allison given a bit of a spray to uh one of the one of you one of the analysts on the Min res quarterly call it was um we read the quotes didn't listen to the call but read the quotes I'm just like what we'll go listen to this and so let's play it for the money minus always surprised with what the analysts come out Goldman Sachs I mean you guys come out in 21 and you thought that spot was worth 30. most of the tunnels in fact it was six times higher than that halfway through 22 you expect that hydroxide to be around 48 000 are done um it was actually one and a half times higher than that and 23. um you're talking about 23 000 a ton and we're sort of sitting at 60 and so it's that demands getting stronger and supplies getting tougher to get in the food chain um Goldman's you're predicting 13 000 a ton of suggest if anyone wants to bed their house on Goldman's they're going to be a winner the market at the moment has been very focused on free cash flow on our balance sheet rightfully so none more than me on doing that um some of the comments you made recently are just I mean total rubbish it's got minres is the only one of the four large caps that's negative three cash flow over the next couple of years well I think I've said a number of times I mean our business probably from end of 20 through to calendar year end of calendar year 24 is literally going to double in size please bear that in mind when you pick up the pin and you make some of those comments because a lot of them is simply unfounded and they're damaging to our business I've saved over a billion dollars of cash going into China so get your head around this and do this in your spreadsheet look if you've got and I'm pretty much available to to everyone if you've got some queries or issues pick up the phone and call me before you put pen to paper because you know the the relationship we're got with our joint venture Partners is second to none and then to go and put that in the press and you know to have Camp go and wake up and read that over and then Charlotte it's just not not good next find me in Perth um drop around have a cup of coffee and we'll um see if we can um have a good discussion around uh where we're going um I read a comment this morning that there's some what was it potential that album is pushing back and not taking watch in our volumes to process into chemicals and I don't know horseshoot what do you reckon oh interesting a couple of good highlights there but he did so Chris did saw at the end of the call he's like next time I come up come come for a cup of coffee and we'll have a discussion on where we're going with it and he was uh what a great uh I just hate getting kicked in the nuts before you put pen to paper uh why don't you anyone can ring me why don't you just give me a ring before you do this because it's uh yeah he didn't take it lightly the because Jordan put out forecasts of the next two years be minros being negative free cash flow for the next two years I will say I haven't had a good look at the um the Min res reports from Jordan but I'm a big fan of their research I think those guys do really good research you might have to argue with Chris yeah I'm not familiar with Chris but I read a few of their reports can you be pretty frazzled after copper one from Ellison wouldn't you she wasn't too polarizing figures that make you yourself it wasn't too fond of the uh the goldmans specific to the commodity price forecasts going forward he also another one of his quotes in it was um goulburn's long yeah Price Forecast for lithium he says if you're going to bet your house against goulburns you're definitely you're going to win about how about betting your mum's house yeah God what is it worth betting your house these days very good boys bloody Jesus feels good being in some money of my merch I reckon I should get some money and more on Vapes out of here now that would be a best seller now we're talking you just leave it up to me boys keep your eyes peeled on the skits money miners because they're going to be rolling out over the weekend oh nice escaping them keeping them punters keen on the weekend right boys we've got to smash this out we've got Billy Davis Business Development the information contained in this episode of money of mine is of General nature only and does not take into account the objectives financial situation or needs of any particular person before making any investment decision you should consult with your financial advisor and consider how appropriate the advice is to your objectives financial situation and needs