SPI - Spitfire Materials - Aussie Stock Forums

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  1. #1

    Post SPI - Spitfire Materials

    Hmmm interesting look Manganese and Coal stock,

    They look to have found some Manganese next door to Woodie Woodie which is CSM's (The old Consolidated Minerals) Manganese mine = excellent location

    They also have a coal deposit in Tasmania

    Cheap mkt cap, with enough cash on hand for 2yrs+

    My kinda stock
    Note: I am not a Financial Adviser, nor are any of my posts intended to be financial advice, they merely express my own opinions

  2. #2
    Black Gold! Caliente's Avatar
    Join Date
    May 2005

    Default Re: SPI - Spitfire Resources

    good luck YT. Right now I am battening down the hatches and freeing up as much cash as possible.

    This market is unbelievable. Just look at BHP today. Getting demolished.
    "Even the mightiest warrior can be crippled by self doubt" Sun Tzu (The Art of War)

  3. #3

    Default Re: SPI - Spitfire Resources

    I know tell me about it huh?

    Call me crazy but I have continued to buy/increase my position in selected stories exposed to either Iron Ore/Manganese Coal and Agri

    I feel like on of those old pirate/sea captains in the eye of the storm yelling at it and laughing wildly, blow ya varmite blow, is that all ye got? Arghhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhh!!!!!!!!!! !!!!!!!!!!!!
    Note: I am not a Financial Adviser, nor are any of my posts intended to be financial advice, they merely express my own opinions

  4. #4

    Default Re: SPI - Spitfire Resources

    Kind of feeling like Forrest Gump myself - just need a Lt. Dan sitting on the mast screaming "YOU WILL NOT SINK THIS SHIP!!!!".

    SPI certainly spiked some interest early on for me, from 0.16 rapidly to 0.3's but then backed off.

    Again - another one to watch.

  5. #5

    Default Re: SPI - Spitfire Resources

    Spitfire rates another mention as it sounds like an exciting prospect, especially with its manganese project (see below), but it seems to have attracted little interest recently.

    Whilst it has fallen from its 12 month high of .35, there are not many sellers (as at 12.30pm today: 20,000 units at .069, 23,000 units at .08 and then the next seller sits at 42,944 units at .165) and it seems to be tightly held.

    Further positive drill results could see this one take off from its current .06'ish levels.

    Other positives are it has $5.4M cash to advance its drilling programs and it only has just over 80M shares on issue.

    It also gets a mention in an article about manganese dated 20 Nov 2008 and is worth a read:

    See below for an excerpt from a January 2009 announcement regarding drill results from its South Woddie Woddie manganese ground:




    • Phase 2 drilling intersects near-surface manganese in most holes completed in the
    Southern Target Area.
    • 14 holes intersect manganese, with best intercepts including:
    o 6m @ 20.48% Mn (including 1m @ 36.0% Mn), 7m @ 21.8% Mn, 4m @ 15.8% Mn and
    7m @ 15.1% Mn
    • Drilling defines a coherent zone of mineralisation extending over an area of 200m X 200m.
    • Priority target for follow-up drilling in 2009, particularly the untested central zone.
    • Exploration camp to be established in Southern Tenement Area.
    • Infill drilling planned following heritage clearances.
    • Discovery increases prospectivity of southern belt at South Woodie Woodie.”

  6. #6

    Default Re: SPI - Spitfire Resources

    SPI could take off after follow up drilling to firm up its South Woodie Woodie manganese ground.

    Last sell was @ .063 and buyers (648K units) presently stacked up to .067, but first seller sits at .14 and only 88K of units available. also remains tightly held with low volumes traded recently

  7. #7

    Default Re: SPI - Spitfire Resources

    Anyone still watching SPI?

    In their last quarterly report they stated as a highlight for their South Woodie Woodie Manganese Project:

    "Sufficient drilling has been completed for Spitfire to undertake a JORC
    compliant resource estimate for the Tally-Ho Deposit, which is targeted for
    completion by September 2009
    . The recently completed phase of exploration has also significantly enhanced Spitfire’s geological understanding of the prospectivity of the South Woodie Woodie Project"

    "Detailed geological mapping programs completed during the Quarter combined with the enhanced geological understanding developed from the Company’s two drilling programs has resulted in the delineation of a range of new targets at South Woodie Woodie, including a priority target area with potential to host primary high-grade Woodie Woodie-style manganese mineralisation 1km to the North West of Tally-Ho"

    We are into the latter part of September now so the announcement can't be too far away. Share price has been hovering in the 9-10c range for a while now.

    With cash reserves of $4.7M at the end of the last quarter and a current market cap (@10c) of only about $7.3M, I would think that SPI has a lot of upside in the near future.

    I disclose that i am a holder. Anyone else care to comment on SPI and their projects and future prospects?

  8. #8

    Default Re: SPI - Spitfire Resources

    I bought some of SPI today, they have some Tally Ho drill results due this month and a revised Manganese JORC estimate to follow.

    Also a Coal drilling campaign later in the year.

    109 million shares on issue top 20 holding 70% and $4.5 mill cash it looks to be a good speccy to hold.

  9. #9

    Default Re: SPI - Spitfire Resources

    An interesting Article well worth a read for any holders.

    Spitfire A Winner From A Re-Start Of The Great Manganese Game

    By Our Man In Oz

    Trust Brian Gilbertson, the master deal maker of BHP Billiton fame, to put manganese back in the news with a classic pot-stirring deal involving Australia’s OM Holdings and an undeveloped resource of the steel-hardening mineral in his home country, South Africa. In a move guaranteed to annoy his arch-rival, Ukraine’s Gennadiy Bogolyubov, Gilbertson has moved to marry OM with his one of the businesses he runs, Pallinghurst Co-Investors. If successful, three things might happen. Gilbertson might achieve his aim of being a force in the world of manganese or, Bogolyubov might fight back and launched a rival bid for OM or, the entire manganese sector might be re-valued as the old bulls battle it out.

    Of those three events the most likely is an uplift in the entire manganese sector as investors re-acquaint themselves with the fact that the world is short of the stuff, and that the price has returned to an historically attractive US$6 a dry metric tonne unit which is the odd measure in which manganese is sold). Recognise that, and the question shifts from what Messrs Gilbertson and Bogolyubov are doing, to what’s an attractive entry point into the manganese business, and the answer is emerging explorer/miners such as Spitfire Resources.

    Small by any measure Spitfire has one major advantage, which is actually the same as that sought by all property investors; location. Its prime asset is the South Woodie Woodie tenement package which lies about 50 kilometres south of the Woodie Woodie mine acquired by Bogolyubov when he was waging a titanic struggle against Gilbertson, and others, for control of Consolidated Minerals and Woodie Woodie. Over the past few years the East Pilbara region which hosts the assets of Spitfire and Consolidated has been re-interpreted as an extensive manganese belt.

    “We have been able to establish an initial JORC-code resource at the Tally-Ho deposit, but that should be just the start,” said Spitfire managing director, James Hamilton when chatting with Minesite earlier this week. “The plan now is to step up our drilling with a programme of reverse circulation and diamond drilling to test for extensions to Tally-Ho. As that work continues we’re making good progress on a pipeline of exploration targets, including an area earmarked as a priority because of its potential to contain Woodie Woodie style mineralisation about one kilometre north-west of Tally-Ho.”

    The exploration work of Spitfire is interesting, but mainly to geologists who like the location. Of equal interest in the company as an investment is its focus on a commodity which has attracted some of the canniest players in the mining game. What happens between Gilbertson and Bogolyubov will not directly affect Spitfire, but it will affect the manganese industry, and that will affect Spitfire.

    The current state of the great manganese game, which actually started some years ago but was postponed thanks to the global financial crisis, sees Gilbertson’s Pallinghurst Investors (a group which includes Korean steel maker, Posco, the merchant bank, Investec, and AMCI, a private investment company headed by Gilbertson associate, Hans Mende) snap up a 22 per cent stake in OM by selling it the Tshipi project in South Africa for an issue of 139.9 million shares. The deal should make OM, which already operates the Bootu Creek manganese mine in Australia’s Northern Territory, a globally-important manganese producer.

    But, and this is a big but, OM already has the Bogolyubov-controlled Consolidated Minerals as a 12 per cent shareholder. If the Pallinghurst deal proceeds Bogolyubov gets watered down to 9.3 per cent, and Pallinghurst emerges with effective control of Bootu Creek and Tshipi, especially if its 22 per cent is counted as friendly to the Singaporean interests which already own 23 per cent of OM. In other words the Pallinghurst play seeks to satisfy several objectives. It creates a bigger manganese player, restores Gilbertson’s reputation as a deal-maker, and thoroughly annoys Bogolyubov.

    What happens next? That is the big question because Bogolyubov really has just two choices. He risks being seen as a watered-down loser, or he trundles out the takeover bid he has been keeping in his back pocket for the past year – if he can afford it given the parlous state of the Russian and Ukrainian steel industry which is where his shrinking fortune lies.

    The media will watch with fascination as Gilbertson and Bogolyubov lock horns because there is nothing quite like the sound and fury of head-butting egos. Savvy investors will see the re-start of hostilities to take a wider look at the manganese market and identify who else might benefit, especially if they look behind the game and see what’s driving it – rising worldwide demand for manganese which fulfils an essential use a steel hardener, especially for so-called “long products” of the type used in the construction of the railways and bridges which China is undertaking with gusto as part of its post-GFC economic stimulation package.

    It is this a combination of factors, rising manganese demand, the boys playing a game of “mine’s bigger than yours”, and the encouraging exploration success at South Woodie Woodie which puts Spitfire in the frame for a possible re-rating as events unfold.

  10. #10

    Default Re: SPI - Spitfire Resources

    Results for the recent drilling programme and a resource upgrade will be out in the march 2010 quarter. Metallurgical test works will also be out soon.

    @8c / share SPI is low capped ( 8M$) with 4.5 M$ in cash.

    Recent EM survey also revealed some exciting manganese targets for drilling in early 2010... They're looking for DSO manganese and with their recent Tally-Hoe discovery things are looking good.


  11. #11

    Default Re: SPI - Spitfire Resources

    Decent gap. Profit taking in line with weak market conditions. A close of 18 would see a small gap again to 19 tomorrow. But breaking 20 would need a tonne of volume. And hopefully it does because I bought at open today! Punters seem to like the recent ann.

  12. #12

    Default Re: SPI - Spitfire Resources

    November 01, 2011

    Spitfire Closes In On Its Manganese Target At South Woodie Woodie
    By Our Man in Oz >> www.minesite.com/aus.html

    Three important events occurred in Western Australia last month. The Queen paid a social call, the state was cut off from the rest of the world when the national airline, Qantas, stopped flying for a few days, and Spitfire Resources re-started drilling at its South Woodie Woodie manganese exploration project in the remote East Pilbara region.

    Not surprisingly, H.M.’s visit for the Commonwealth Heads of Government meeting, and the grounding of the Qantas fleet attracted more publicity than Spitfire’s drilling. But from an investment perspective that might prove to be a mistake, because while manganese is a far from attractive mineral, it can be a very profitable one.

    Chinese investors in particular are warming to the Spitfire story, and accordingly Singapore-based commodities trader, Prosperity Steel, has built its stake in the company to an impressive 18.7 per cent. That’s slightly ahead of Spitfire’s close associate, Aim-listed coal explorer, Churchill Mining, which has a 16 per cent stake. Prosperity’s presence on the register in particular speaks volumes about the importance of manganese to the steel mills of Asia.

    “Every time I speak with the Chinese investors they ask when can they have some manganese”, said Spitfire executive chairman, James Hamilton, when Minesite’s Man in Oz caught up with him for a chat over a pizza and a glass of New Zealand sauvignon blanc. “Demand for the material is strong, and the price has been holding up well even while other commodities have slipped. Asian steel mills are keen to secure a steady flow of future supplies and that’s why there is growing interest in what we’re doing.”

    And what exactly is Spitfire doing? In a word, lots. October saw the return of drilling rigs to South Woodie Woodie, this time with a much more precise series of targets identified by a geophysical tool known as gradient array induced polarisation. Long a favourite of Canadian explorers, induced polarisation (IP) has had a chequered history in Australia.

    A lifetime ago, when Minesite’s Man in Oz was studying geology (with limited success), he served time as a field assistant running IP surveys. But back in the late 1960s, IP in Australian conditions was disliked, or not trusted, as critics at the time said high levels of salt in the ground generated false readings from the return signals of electricity pumped into the ground. And so, IP was dropped as a commonly-used tool, other ways were found to pump electricity into the ground, and Minesite’s Man in Oz found other ways to make a living.

    But Spitfire’s gradient array IP, backed up by geological boots on the ground, appears to have produced much clearer results that the critics of old might have expected. It’s succeeded in outlining a series of manganese targets using parameters worked out at the company’s other earlier manganese discoveries, Contact and Contact North. In effect, the new targets have been “discovered” thanks to a technique applied with some success by other manganese explorers in the region.

    The trick now is to drill areas which have given off a geophysical signature similar to those at the original discoveries. Those smaller discoveries have already allowed Spitfire to report a small initial JORC-code compliant resource. But the work at South Woodie Woodie is a step up towards a much bigger number which could see Spitfire in production by early 2014.

    Spitfire’s effort to unlock the secrets of South Woodie Woodie, located just 70 kilometres south of the world class Woodie Woodie manganese mine, started two years ago with the discovery of the Tally Ho deposit, which has been measured at a non-commercial 2.97 million tonnes grading 7.07% manganese. The Contact and Contact North discoveries, about 10 kilometres to the north-west of Tally Ho, appear to be a much higher class discovery, with manganese grades running at up to 46.68% over a thin one metre section, a grade which qualifies as direct-shipping ore – if there’s enough of it. Other intersections at the Contact discoveries include eight metres at 40.33% manganese from a depth of 91 metres in one hole, and three metres at 40.93% from a depth of 57 metres in another.

    “Those drill hits were tremendously exciting”, James said. “They confirmed the potential for South Woodie Woodie to host direct shipping ore of the sort exported from Woodie Woodie. Our aim with this new program is to complete 14,000 metres of reverse circulation drilling on the targets identified by the IP survey, while also drilling out the Contact and Contact North discoveries to enable the calculation of a JORC compliant resource.” If all goes to plan, Spitfire aims to hit its initial exploration target of between 10 million and 15 million tonnes of ore grading between 15% and 25% manganese oxide early next year, with further upgrades are likely after that.

    On the market, Spitfire has been trading in a narrow band between A12 cents and A15 cents for the past few months. Those prices are some way below the A24 cent price target set by analysts at the Perth stockbroking firm of DJ Carmichael. Carmichael told clients in late October that if Spitfire delineates a 12.5 million tonne resource at South Woodie Woodie the project would have a value of A$36 million, which implies a value per Spitfire share of A24 cents.

    The newsflow which ought to stimulate that re-rating should come through within the next three months or so. So we won’t have long to wait to see if Carmichael is right or not.

  13. #13

    Default Re: SPI - Spitfire Materials

    On April 14th, 2016, Spitfire Resources Limited changed its name to Spitfire Materials Limited.

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