Nobodysfuel wrote: BONE AGM notes
These are my personal note from the AGM. They are NOT an official transcript. Please do you own due diligence.
Year in review: from May 2023 to August 2024
BONE has 3 zones of boron: calcium borate, ulexite, and a mixed conglomerate zone, which must be separated. They have chosen an Australian company (ALF?) to help with the separation of the borates. First tests were done in 2023. They were able to make commercially viable versions of all three types of boron; this was 1 or 2 kilos.
In August, they tested this at bulk. This was done with colemanite, and it was produced well over 40% B2O3, which puts us in the same ballpark as Turkey.
Also in August 2023, we finished bulk scale with ulexite, with grades well exceeding anything else on the market today.
In Sept 2023, we finished the work on the mixed zone, to product boric acid on bulk scale at better than 99% pure boric acid.
From July to Sept 2023, we learned we are able to monetize the entire deposit at commercial scale.
These were crucial for the submission to the Serbian government.
Also in Sept 2023, big news was completion of Serbian compliance study and we told Serbs were ready to submit it. This was important and fit with the Serbian licence process. It was timely and we met the timing.
In March 2023, we submitted the elaborate, which is a very large document with thousands of pages. This was submitted to independent auditors. By Oct 2023, they finally asked for clarification. By the end of Oct we clarified these questions.
In December 2023, the Serbian government approved the elaborate.
In January 2024, we received the certificate of reserves.
In Feb 2024, we asked for a extension to the exploration license for Piskanja. We didn’t need one, but we thought it may add protection. This was done because there is a loophole in the Serbian law. This is to cover the delay between existing exploration and the exploitation license. It was granted right away by mining ministry.
Also in Feb 2024, we applied for new licence on the rest of the Jarandol basin. We had one before, but we let it go, because it required a certain amount of work, and we didn’t want to divert resources, so we had to let it go. But we got it back. Some of the past work in the basin was encouraging, with possible extension for Piskanja or perhaps new deposits. We got it in April.
Canadian ambassador visited and he was impressed. He got to see the good relationships we’ve developed in the local mining community and the local community members. He was impressed by the level of enthusiasm in the locals to our project.
In June 2024, we received the final piece of the puzzle. In June 2024, we got the final approval from the environment minister. So we formally submitted final info for exploitation license. We expect news by “this fall.”
Going Forward Plan
Near term (next 12 to 18 months)
Approval of exploitation field (this is in the Serb’s hands); we are in constant contact with mining ministry.
Tim has been pleasantly surprised with expediency of the current mining ministry people. In past yeas, this was not the case. (Tim talks about this for 5 minutes in detail).
Closing with potential funding partners. Not states publicly about this. Not necessarily a bad thing, as we have improved our situation, and also in the same period of time, the boron market fundamental have been improving for producers: price going up, boron added to critical minerals list, suppliers wish to secure long term supply. TD thinks the kind of deal he can make today is significantly better than 1 or 2 years ago. Discussions are on-going with funders, off-takers, and strategic and debt funding partners.
We want to raise only the equity we need, in order to give up as little of the project as we can. TD want to do this, because out payoff (revenue potential) is so close. We are in discussions with multiple partners. Some only bring money, some being money and expertise, eight production, or consumption appetite.
Companies who may want our boron want multi-decade supply. These are very rare for them. Turkey and RT are not willing to give up equity, but we may for the right major consumer. This is worth a lot to them.
TD things we will have all this in place in the near-term.
We are also working on a pilot project, to be done over the next year.
The completion of the mine design plans need to be done during this time. We are talking with some engineering company.
The full environment impact assessment needs to be done in conjunction with the mine design. All these should be submitted to the Serbs. This results in approval to build the mine. These also include building permits.
We are also completing discussions and agreement on the Pobrdje deposit. On-going discussions with Ibar mines. This has been in the works for quite some time. But TD is more optimistic in the near-term. This would make a good small pilot project. Would be a win-win-win, for us, government of Serbia, and Ibar. (A bit of background on Ibar).
Long-term (after 18 months)
Development of Piskanja mine. Development time is 18 to 24 months for mine into production.
More exploration on Jarandol. Not much expected in the next year. Some previous holes were exciting and they want to get back to this.
We are looking at other opportunities. Piskanja will produce substantial cashflows, so they will be looking for additional projects – YIKES! (my note).
Blake talks about marketing plan. We are engaged with Follow the Money Investor Group. It’s mostly social media boron education. This has been good. Follow the Money also looks after town halls, and one-on-one interviews. They also help with news distribution. We are always looking at other programs going forward, to get us in front of analysts. We plan on doing a few road shows and tradeshows in the coming year. Call Blake for more information or e-mail him at
blake@boronone.com Q & A
Glen Stacik (sp?): Exploitation license application currently with the government since July. Has the government come back with questions?
No. Mining ministry takes their own rules as suggestions. It says they have 60 days to respond with requests. We have never received a response from the government in 60 days; sometimes 3 to 4 months and sometimes 6 months. The 60 days is a “guideline”. July plus 60 days makes it Sept, and new government is timely, however, it could stretch out. This would not be out of character. TD: don’t read anything into the 60 days promise. Also, filing of exploitation license is new to us as well, so we have no prior examples.
Could they request additional clarification? Yes, but it would be formal and pretty clear. We just don’t know.
TD suggests August is slow, with a few lost weeks due to vacations. “We just won’t know until we know.”
On the small deposit (Pobrdje), what is the timeframe to find out?
There seems to be a bit of momentum but we don’t really know. Could be well on the way by this fall, but that’s TDs “wild guess.”
Current values of colmenite and other boron? Quoted old prices. New prices are sketchy and fluctuates. Boron is not a quoted commodity, but in talking with sources (these are consumers who know). They are big buyers getting good prices.
Colmenite: $525 to 550 Euros or $575 US per tonne (?)
Boric acid prices are more variable due to some 3
rd party producers who can influence price. Prices are higher too: $1250 US/tonne. This is almost double of where is used to be a few years ago.
Our “mixed zone” will be used to produce boric acid.
They talked about the PEA quite a bit and discount rate (e.g., political risk) but I wan’t really listening. Discount rates in the PEA were estimated. We have always used conservative numbers.
Giancarlo (?): Valuation of Piskanja. In 2022 report there was a 50% discount risk. TD has derisked the project to this point.
What is a new valuation right now. Is it worthwhile updating the 2022 report to change the discount risk?
Tim can’t really comment due to security regulations. He can’t comment of valuation. It’s got to be done by a CFA.
They haven’t considered updating the 2022 report.
Contact TD or BF at the office for more questions.
I had to leave at this point.
GLTA,
Nobodysfuel