Duluth Metals Ltd DULMF

Anto chairman's comments at May 21 AGM

[mayorkgh]

Our other two major longer term growth projects are a further expansion of Los Pelambres and the development of Twin Metals. The proposed ‘doubling’ of Los Pelambres has been put on hold for now as we focus on our near and medium term opportunities. 

 

Twin Metals, our project based in Minnesota, in the United States remains on track for completion of the pre-feasibility study during this year. The project has significant reserves and is a world class deposit in terms of size. It also faces technical and environmental challenges which we believe will be overcome, but not until at least the end of this decade. 

[yoda2]

?? "technical and environmental challenges which we believe will be overcome, but not until at least the end of this decade" What is this message? have we been fooled by DM management?

[oceaneleven]

decade eh.............no surprise......look at how long it has taken POM to get anywhere........

[rocdic]

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[rationalinvest]

Thanks... that is quite a conviction Anto is showing here, while the PFS is not even on the table yet.. I am pleased to read this. Anto says 'yes we will make TM a mine', market says 'small chance of TM becoming a mine'... place your bets. :)

[TheCardinal]

  Well, yes and no.  What the "market" is saying is '.... small chance... any time soon ' and that's certainly correct.  Too many people here thought this was going to be some sort of quick sprint, and not the marathon it really is.

[yoda2]

rational    I hope your assessment is correct.  However is it possible you are too optimistic. Read the chairman's comments again.   :https://www.antofagasta.co.uk/~/media/Files/A/Antofagasta/pdf/press_releases/2014/agm-20052014.pdf He seems to be saying that the brownfield projects have a much higher priority than the greenfield ones and that they have many

[rationalinvest]

There is no surprise in that timeline. I have assumed start of mining in 2020/2021 since I built my model. It might even be later. Let's say that in this industry, it's rare to see it earlier. :) So anybody freaking out about this, I would like to encourage: please do freak out and sell, so I can gobble up some more shares, haha. I read the 'technical challenges' as the mining

[yoda2]

rational very helpful Would you indicate when Anto's agreement not to increase their % ownership of DM expires.? Do you foresee that if/as DM lacks enough funds to finance their share of Twin metals that Anto will finance and increase their % interest in Twin Metals? When/How would Anto ever consider acquiring DM? thank you for your patience yoda

[rocdic]

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[rationalinvest]

Hi Yoda, regarding your questions: 1) Standstill expires on the earlier of the payment date of 25% option price (if Anto exercises) or six years from funding date, which is July 2010. So that would result in July 2016. Standstill also terminates on: DM change of control (20% or more interest) by 3rd party (takeover) or announcement of intention to make takeover bid DM completing &

[yoda2]

rational thanks I wish my questions were as good as your answers. It appears likely that we will see more dilution at low share prices, although if the PFS is great and before a new share issue the selling price may not be that low. DM seems over managed and is exploring too much.  Does that impression have merit and if so why can DM not downsize prior to the launch of the TMM project ?

[estebancaballo]

DM wants to make additional discoveries on DM land as this will allow them to raise money to stay in the game. For this they need the drilling and hype. The good news is that the drilling results have been very positive... there IS gold in them there hills.... imho.

[DearBear6]

Yoda, If there is bad sentiment there will be more dilution in the future, perhaps every year, until the mine is in full production with a positive cash flow. Whether the share price is low or high when the dilution is happening depends on market sentiment. The PFS could help share prices a lot. It is likely that dilution will happen if the stock price doesn't go up after PFS. It is also

[rationalinvest]

Hi Yoda, DM is indeed already downsizing in a big way.. quietly though, you have to read it in the MD&A posted on sedar.com (f.e. of May 14 and it's also in the MD&A from a quarter ealier): "The Company’s management and board of directors have worked diligently to reduce expenses, and monitor these expenses against exploration activities. Duluth is continuing with its exploration