URU Metals owns 100% of The Zebediela Nickel Sulphide Project. It is located in the Limpopo Province of South Africa close to the platinum mining town of Mokopane.
A Preliminary Economic Assessment ("PEA") completed in 2012 reported inferred and indicated resources (Non-JORC) totalling over 1.5 billion tonnes with an estimated Net Present Value of US$317 million and a post-tax IRR of 18.6% (assuming a post-tax discount rate of 10%, nickel price of US$8.50/lb, production of 20,000 tonnes of nickel per year over a 25 year mine life, a total capex cost of US$708 million, and an opex cost of US$3.35/lb Ni).
On commencement of production Zebediela will be the 12th biggest nickel mine in the world and with expansion initiatives at has the potential to become one of the world's top 10.
URU is up 560% since the beginning of the year and the market cap has surged to £27.4m even thou the company has no revenue, no real operation and the cash balance is less than 10% of the market cap.
URU in many ways defines a AIM pump. The company has been unsuccessful company for several years with a tiny market cap. Their last exploration project "the Närke project" in Sweden where they were looking for uranium and oil turned out to be a failure.
URU BOD has played the pump by the book since over the past months:
1. Management buys cheap shares
22 Nov 2016- URU raises £640k at 0.4p per share where CEO John Zorbas and Chairman David Subotic subscribes for 12.5m shares each. The raised cash is going to be used to fund drill testing, infill drilling and metallurgical studies at the Zebediela project.
2. Management buys some more cheap shares:
9 Jan 2017 - URU raises £770k at 0.45p and John Zorbas and David Subotic subscribes for 3.33m shares each.
The CEO is commenting in the RNS "This placing, at a 12.5% premium to the placing price in November 2016, represents a further show of confidence by investors in the company's assets, which is laughable that 12.5% premium to the last raise shows confident in a stock which moves +/-10% many days.
3. The stock starts to move up on various market rumors that on the size of the Zebediela project (a project the company have held for a long time already) and rumors that the company is looking to go into lithium. What can be more hot than lithium which every battery in the world soon will need. The clowns at URU are obviously best positioned to take advantage of this opportunity.
4. Lets raise some cash at a premium!!!
13 Feb 2017 - the company announces that they have raised £535k at 4.5p a significant premium to the share price. The capital increase is obviously a vote of confident in the projects the company is involved in. The cash is going to be used to explore opportunities in the lithium business. The company throws in so random quotes and stats about how big lithium is going to be. What is shady about the capital increase is a few things 1) Its not disclosed if the participants in the capital increase gets a large finders fee or underwriting fee, which could mean that the placing price net of fee is not at a premium to the share price, 2) URU broker Northland doesnt even want to show the placing under deals they have done on their deal list - a little bit odd.
5. Lets do a deal reinforcing the value of the stock!
If anyone doubts that a company with no revenue, no real project, less than 10% of the market cap is cash is worth £25-30m lets do a deal which tells the difference. 1 Mar 2017, the company acquires 8.8% in Management Resources Solutions (MRS) from SCOPN. URU mgmt. states that they paid £1.13m for the deal with 25.17m URU shares, works out at 4.5p per URU share. There are several problems with this deal. MRS is a listed company, or is supposed to be a listed company but is currently suspended from trading because their former CEO Paul Morffew who is also the owner of SCOPN, mismanaged the company so significantly that the LSE suspended the share from trading and the MRS BOD had to do a full investigation of their business and re-state already reported financials.
By doing this deal URU has managed to get Paul Morffew as a large shareholder and they are sitting on 8.8% in a company which share is suspended. If and when the MRS share begins to trade again, its very likely that the stock will be considerably lower compared to where its last closed (15p) 27 Oct 2016.
URU BOD will most likely continue to put out questionable news it may or it may not be enough to fool new investor. But in the end of the day reality will catch up. URU has no real operation, limited amounts of cash and a very overvalued share.
Call me cynical, but on first appearences a placing at a premium looks great first thing - it did me, but these people have a shedload of shares bought at .4p.
If they haven't been selling some into the rise I would be very surprised - I would.
Would be interesting if holding RNS's come out with the figures later on.
They got 160mil shares in the Nov. placing.
What a day for this share. Top of the leader board UP 54% and a volume 109 million which is about 15% of the company's shares. The day was going well continuing the recent trend when the placing RNS landed this afternoon but not the usual discount. It was a placing at a PREMIUM, the shares opened this morning at 2.5p and the placing to inter alia a major shareholder and 2 directors was at 4.5p to raise £500000 to persue further lithium opportunities.
This is a massive vote of confidence by the Directors and major shareholder. The potential here is many multiples of the current market cap which is only £27 million.
I just revisited my last comment on URU at the end of October 2016 during which month it went from 0.3 to 0.85 saw a high volume day of 24 million. The Market cap was £2.6 million.
Today URU was up 17.5% closing at 2.15p on a volume of 81 million and now a market cap of £16 million.
Very good progress since October .
Looking through the notes of the 23/12 Interim results:
6. Purchase of Umnex Minerals Limpopo Pty ("UML")
In November 2013, the Company acquired 100% interest in Southern Africa Nickel Limited ("SAN Ltd."). SAN Ltd in turn had a 74% interest in a joint operation (the "SAN-Umnex Joint Venture"). The remaining 26% was held by Umnex Mineral Holdings Pty ("UMH"), which had title to the Zebediela licences through its subsidiary, UML. SAN Ltd and UMH had been in dispute since 2011, and arbitration had begun in August 2013. As a result of this arbitration, in fiscal 2013 the Company had provided in full for the costs of the Zebediela project (USD 1,821,000). The reversal of the impairment will be assessed once the title to the licences has been completely transferred to the Company.
On April 10, 2014, SAN Ltd. and UMH agreed that SAN Ltd. would purchase 100% of UML from UMH for consideration of 33,194,181 in new URU Metals shares and 8,000,000 bonus shares issued to directors and officers for their services in the acquisition of UML.
The Zebediela Project extends over three separate mining titles in Limpopo Province. As at the date of acquisition, title to all three rights were held by parties unrelated to UML, and transfer of the rights to UML's subsidiary Lesogo Platinum Uitloop Pty ("LPU") had not been completed. The timing of the transfer is uncertain and regulatory approval of the transfer remains outstanding.
Am I reading this wrong, or does it not say that URU does not yet have the titles to the rights for the Nickel project...................................???
Heres some research for you with regard to costs and mining, grades are lower, which highers the cost of extraction but volume is great and with the project price movement of metals makes the mine very economical the intital grades are on the recent update rns - but heres a look at the costs and margins for Magnetite is a pre nickel product, $81 a tonne at the moment and rising, by my knowledge production costs per tonne range from $20 to $40 per tonne, lots of factors involved, but taken this figure from several companies. So average $30 per tonne cost, capex is for the open mine so would associate this with the nickel extraction, this is pre nickel. 1.2M tonne per year would yield a profit of 60M per year on the ore. Ok let's look at the nickel - open mine operation means lower capex - I have seen 800M put around a few times by Zorbas recently. 25000 tonnes per year is the target on the nickel, current price $11500 per tonne but both nickel and ore expected to go higher buy several institutions in the coming years, cost of production is $8500 per tonne That will give us $3000 per tonne profit - so the annual profit will be 75M so that gives us a total annual profit of $135 MIllion that's without factoring in the platinum.
Servicing the capex debt if we went down that route would be 80M per year for 20 years, so profit would be 55M per year. Millions of ways of doing this calculation but all will come back with a undervalued asset and a profitable business, what's the asset worth wide spread as many things make up formulas etc but I would say between 50-100 million for the asset. Current a a Mcap 1.8M you do your own sums these are mine, DYOR, I could multiple profit by 3 to give sale price, but at the moment it's an asset so price is lower , this makes this a steal for 50M MORE ROBUST GROWTH will tell on nickel supplies, analysts say. The nickel market will have a 150,000 ton deficit in 2017, up from a 50,000 ton shortage this year, according to analysts at TD Securities. Also driving the shortfall is a nickel mining crackdown by the Philippines, the worldÕs biggest exporter. The country has shut down roughly a quarter of its mines for environmental rea-sons in the past few months, and threatens to close dozens more. Driving the rally are expectations of stronger demand from China and the U.S., the two key consumers of the metal, along with evidence that supplies are finally tightening. In China, the industrial sector recently picked up to a two-year high, as shown by the manufacturing purchasing managerÕs index for September.
This is the lowest price you are ever going to get into this share going forward - you may ask why I think that well heres the info -
37Mt of Nickel @ $11k per tonne = $407 billion
- Uru own 100% of the three licenses and have applied to consolidate all three to reduce mining costs
- £1.5m mcap - undervalued
- Early revenue stream with extraction of magnetite, 27Mt @ $9k per tonne = $243 billion
- 20x the asset of AMC (already at 8p per share)
- Works timeline for 2017 to be released soon
- Zorbas now on the board as of yesterday, more known recently because of the great movement at MCC.
- Biggest shareholder and both directors bought shares on this placing
- oil and uranium asset in Sweden, plus others
- fully funded going forward after placing
- trading and liquidity of the share has improved and recent buying has been .55 and above,
- company will now be focused on getting this out of the ground as metal prices are high and predicted to go higher.
- as investors switch from oil to metals for investment and growth.
- news coming on 2 of our assets
- 2 experts hired in the last 2 weeks
URU started the month at 0.3 and is currently 0.85.
A high volume day of 24 million on 7th Oct kicked off the rise which has continued. High volume yesterday of 11 million and today volume already 16.4 million and the sp up another 11%.
The market cap is still only £2.7 million.
The half year results to 30/9/14 were posted at the end of December and one would expect the full year to 31st March by the end of June. The last news we had was a Director buying 500000 shares in April. It's time for an update.
The connection between URU and MMO appears to be John Zorbas, CEO of both companies.
Mr. John Zorbas has been the Chief Executive Officer of URU Metals Limited since June 2, 2014. Mr. Zorbas has been Managing Director of NWT Uranium Corp. since June 16, 2008 and has been its Executive Chairman since July 8, 2011. He serves as the Chief Executive Officer at Mercom Oil Sands PLC. He served as Interim President of NWT Uranium Corp., since March 2014. He served as a Co-Chief Executive Officer at Mercom since June 19, 2011. He served as President of MGM Productions Group Inc. He is a founding shareholder of Asian Coast Development Ltd. Mr. Zorbas has been a Director for NWT Uranium Corp. since June 2010. He has been a Director of Mercom Oil Sands PLC since June 19, 2012. He serves as a Director of ZorCorp Capital Holdings, URU Metals Limited and Starline Capital Holdings Infrastructure Fund. Mr. Zorbas has been a Director of Stratton Capital Corp. since April 2011. Mr. Zorbas holds an Honors Bachelors degree in Economics from the University of Toronto.
A surge of interest today in this small uranium stock.
Volume now over 5 million and its market cap at the start of the day was only £3.3 million.
Top 5 shareholders own over 61%.
There is a lot of potential here if the market starts to recognise the real value of its assets.
In addition to info within my last post, I have also looked at the WHOIS record for the domain, which shows the domain for the company to be available to purchase. Does anyone have any other information on this as to state of play of the company??
Interesting to see that Beaufort have said good things about URU assets and this has been reflected by an increase in the sp.
It is interesting to note that another unloved uranium stock FTE went up 26% yesterday on no news. Perhaps investors are starting to take interest in uranium again.
It's a shame Beaufort haven't given a target price but let's see what happens over the next few weeks.
Beginning the base line environmental study marks a significant milestone for URU Metals exploration activity at the Närke project and is likely to aid in advancing the licenses into Exploitation Concessions. With an exploration target of 1.47 billion tonnes, including 303,000 tonnes Triuranium octoxide (U3O8) and 525 million barrels of oil equivalent (mmboe), the Närke project holds the potential to become one of the worlds leading uranium producers.
Further, the Zebediela Nickel Sulphide Project could place the company as a key nickel producer globally.
Given the attractiveness of these two lead projects, we remain optimistic about the stock and maintain a Speculative Buy.
IT is estimated that over 90% of AIM stocks are INFECTED by short-sellers !
Many highly popular stocks are going down even on GOOD NEWS !
# IF you were a short-seller, BLUFFING, (basically manipulating a shares' price) about a company's overvalued share price, you might not want to *draw attention to yourself since you could get accused of stock manipulation. So you would hope (OR PLAN FOR) others to get involved and to present SEEMINGLY GOOD REASONS to short the stock.
You would want to put AS MUCH FEAR INTO 'LONGS' as possible and would use high volume short trading as well as buying to drive the share price down as low as you can and as long as you can. You really want the longs to fold and to get out of the game. If you are consistently seeing sellers overwhelming buyers driving a share price down as a stock seems to be going up, I can assure you it's probably shorts' selling, since longs are totally motivated to sell their shares at the highest possible selling price. #
RUINOUS to genuine investors.
They may be able to buy in cheap BUT what's the good, if the stock never really recovers?
AND when they have got you all hooked on the 'lovely' new all-time LOW.....They'll SHORT IT AGAIN !
We have had a Placing to raise £800000 today @1.5p which is close to the current sp so seems not a bad deal. It seems to have been well received as there wears a very large BUY at the end of Trading today. There was a purchase of 6.7 million shares @1.84p which is a spend of £123000.
This is going to be a total no brainer as they have the metal in the ground, a cheap local labour force; and a huge market to sell to..
Commenting on the final stage of the company's acquisition of UML and the Zebediela project, David Subotic, Chairman of URU Metals said:
"I am absolutely delighted to be able to say that we have finally met all our commitments in the acquisition of the Zebediela nickel project in South Africa and now own 100 per cent of this significant sulphide resource project.
This is a sulphide nickel project with combined and inferred indicated resources of 1.5 billion tonnes containing 37Mt of nickel which has the potential to become one of the world's largest nickel producers. With the nickel price at a 14 month high it is a great time to own a project like Zebediela."
Further to the announcement made on the 27th January 2014, URU Metals Limited (AIM:URU), the base metals and uranium explorer and development Company, today announces that it has completed the acquisition of shares of Umnex Minerals Limpopo (Pty) Ltd ("UML"), giving it 100 per cent. ownership of UML.
UML is the 100 per cent. legal and beneficial owner of the Zebediela Nickel Project in South Africa. The This is why...
At $17,000-$18000 a ton they are sat on a fortune ,literally.
Zebediela project is a world class project with combined inferred and indicated resources of over 1.5 billion tonnes of nickel. A NI 43-101 compliant Preliminary Economic Assessment ("PEA") was completed in 2012 showing indicated resources of 485.4 million tonnes averaging 0.245% nickel, and additional inferred resources of 1,115.1 million tonnes of 0.248% nickel.
Important message from the Financial Conduct Authority:
Posting inside information that is not public knowledge, or information that is false or misleading, may constitute market abuse.
This could lead to an unlimited fine and up to seven years in prison.
If you have any information, concerns or queries about market abuse, click here.
The content of the messages posted represents the opinions of the author, and does not represent the opinions of Interactive Investor Trading Limited or its affiliates and has not been approved or issued by Interactive Investor Trading Limited.
You should be aware that the other participants of the above discussion group are strangers to you and may make statements which may be misleading, deceptive or wrong.
Please remember that the value of investments or income from them may go down as well as up and that the past performance of an investment is not a guide to its performance in the future.
The discussion boards on this site are intended to be an information sharing forum and is not intended to address your particular requirements.
Whilst information provided on them can help with your investment research you need to consider carefully whether you should make (or refraining from making) investment or other decisions based on what you see without doing further research on investments you are interested in.
Participating in this forum cannot be a substitute for obtaining advice from an appropriate expert independent adviser who takes into account your circumstances and specific investment needs in selected investments that are appropriate for you.