Conference call
posted on
Mar 04, 2021 10:57PM
Resource projects cover more than 1,713 km2 in three provinces at various stages, including the following: hematite magnetite iron formations, titaniferous magnetite & hematite, nickel/copper/PGM, chromite, Volcanogenic Massive and gold.
So....I did listen in on the conference call today. I didn't take notes, but this is my overall impression.
Basically, they went through what Fancamp brings to the table and what SZM brings to the table. On that note, FNC brings 90 projects....patents re: titanium....cash....and a strong balance sheet, while SZM brings a low grade zinc project that has failed twice back to production with an effort to get it right this time with a superior management team and a better plan.
I didn't get a good feel for this project they want to move forward with. It has already failed twice and the grades are not impressive. I will say though, that is not my area of expertise and they do have a feasibility study which indiates some good positive cash flows with opportunities to improve. Lots of time was spent on technical issues they feel they have a grasp on and all the technical expertise that went in to putting the numbers together.....which included several posible better outcomes than the current NPV.
I don't think there was much offered in the presentation that's much different from what you could find on their web page. It does appear FNC currently has over $10 million in cash and 3.2 million shares of CIA left. Furthermore, it does appear they could use FNC's balance sheet position as leverage to borrow more and leave cash for some exploration.
With respect to other properties, there does seem to be a plan to monitize other FNC properties through JV's or outright sales.
They did not take live questions, but they did acknowledge there are certain people who are not in favour of this move. They also tried to explain away the fact that Fancamp shareholders don't get a vote (all legal) and the fact that they delayed the shareholder meeting (Covid and legal).
Those three things I found bothersome....no live questions....no FNC vote....no shareholder meeting before closing deal......which may indicate that the project does not hold up to scrutiny. We are left to rely on people they hire to put the numbers together and trust them. And, I've been burned enough times in this market to be that trusting.
My vote as an SZM shareholder would be a nothing to lose yes
My vote as a Fancamp shareholder would be a no....find a better deal
I will say....in closing....I will hold my shares regardless if this deal passes or not as I do think Fancamp has some hidden jems (ROF property for instance; and potential with respect to Magpie and Lamelee). Furthermore, I do believe the trend for base metals, including Zinc and Lead, are upwards due to large infrastructure projects around the world in an effort towards greener energy solutions. If this project gets off the ground as planned and they are able to general the predicted cash flows and possibly more, this could be good in the end.