Cash flow seems to be king, especially for resource investors of late. And with so many juniors struggling just to survive
Anfield ResourcesInc. (
TSX: V.ARY,
Stock Forum), and its expectations for increased cash flow in the near future, seems to have caught the attention of some investors recently, sending its stock soaring 136% so far in 2014 to its recent price of $0.59 a share.
Anfield’s assets include uranium mining claims and state leases in southeastern Utah and Arizona totalling over 11,000 acres, the Binghampton Copper Queen (BCQ) project in Arizona with two past-producing mines on the property, the North Star Copper Project also in Arizona, consisting of 200 mining claims covering approximately 4,000 acres, and its producing Aura mine in Chile.
“Our strategy is to target near-term production and cash-flow generation in order to distinguish ourselves from other small resource companies,” said Anfield Resources CEO Corey Dias, in an interview with SmallCapPower.com.
Anfield is already mining copper ore on a small scale in Chile, which essentially involves blasting the ore, separating the ore from the rock and shipping it in trucks to the Enami Processing facility. Enami is a government mining agency whose sole mandate is to facilitate the operations of small and medium-sized mining companies by purchasing ore from these entities. Enami’s processing facility near Aura is currently running at just 60% capacity utilization, which gives Anfield the opportunity to increase its output if warranted.
Mr. Dias explained that, based on its eight land concessions at Aura, Anfield would be allowed to sell as much as 32,000 tonnes of ore per month to Enami in a Blue-Sky scenario. Using a relatively conservative $75 per tonne tariff, that could potentially translate into as much as $2.4 million per month of revenue for Anfield should the company be able to maximize its ore-selling limitation of 4,000 tons per month imposed by Enami. He added that its Aura operation is currently breaking even on a cash-flow basis.
With its uranium assets that include over 50 historically-producing mines, Anfield is hoping to replicate the cash-flow generation opportunity of its Chile operations during the next couple of years. The company anticipates bringing its uranium properties into production by the end of 2015, which it believes is possible given that it is targeting assets such as past-producing mines with underground workings.
Unlike a true producer, though, Anfield will be collecting the ore and shipping it to an established mill, which will likely be Energy Fuels’ White Mesa Mill. Thus, Anfield won’t have the capex expense or mill permitting issues to deal with and it has already applied for authorization to begin mining.
On February 13, 2014, Anfield announced the signing of a purchase agreement, which included a right of first refusal with regard to the purchase of 100% of mine production, with Blue Zen Memorial Parks (BZM) to jointly advance Anfield's Binghampton Copper Queen (BCQ) copper project in Arizona.
The agreement includes an initial $2 million project-level investment by BZM to delineate a copper resource estimate at BCQ. BZM’s principal shareholder, Mr. Jiang Jiaping, is the founder and CEO of China-based Jiangsu TianDiLong Land Resource Technology Co. Ltd., which produces copper cathodes, rods and wires and has annual sales of $1.8 billion.
Anfield has recently raised about $2 million in equity financing, so Mr. Dias doesn’t expect to have to go back to the market anytime soon to raise more funds. And with just 18 million shares outstanding, it doesn’t take a lot of buyers to move its stock price higher.
Trading at 59 cents, Anfield has a market cap of $10.6 million, based on 17.9 million shares outstanding. The 52-week range is $1.50 and 20 cents.
To learn more about Anfield Resources, please visit the
company’s website.
This article was also published by
SmallCapPower.com
Disclosure: Anfield Resources is a Stockhouse client