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Bacanora Lithi. Share Chat (BCN)



Share Price: 26.60Bid: 26.50Ask: 27.50Change: -0.15 (-0.56%)Faller - Bacanora Lithi.
Spread: 1.00Spread as %: 3.77%Open: 26.75High: 26.60Low: 26.60Yesterday’s Close: 26.75


Share Discussion for Bacanora Lithi.


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wolfi_at
Posts: 133
Opinion:No Opinion
Price:26.75
Zinnwald
Today 16:10
source: https://www.finanznachrichten.de/nachrichten-2019-05/46791163-late-briefing-unternehmen-und-maerkte-2-015.htm
translated by Google ...

Bacanora wants to win German car industry for lithium project

In order to raise the necessary funds for the planned lithium mining in the Erzgebirge, the leading Canadian company Bacanora Lithium has also turned to the potential customers from the automotive industry. CEO Peter Secker said in an interview with Dow Jones Newswires that Bacanora will probably divest more than half of the shares following a spin-off of the Saxon project company Deutsche Lithium.
 
CaptainSwag
Posts: 1,650
Opinion:No Opinion
Price:26.75
RE: 100k buy
Today 15:34
Probably why its been difficult to buy . had to do two trades to buy £10k
abd1991
Posts: 134
Opinion:No Opinion
Price:26.75
RE: Ganfeng deal
Today 14:25
thats in yuan so £228m
stroga
Posts: 147
Opinion:No Opinion
Price:26.75
RE: Ganfeng deal
Today 14:21
All serious holders know, that this will scale massive up - patience is needed.
Mostlyharmless
Posts: 46
Opinion:No Opinion
Price:26.75
Ganfeng deal
Today 14:17
Just out of interest.... Has anyone looked at the Ganfeng website, as on Wolfi's post below?
2017....Total income 4 Billion. 2017...Total profit 2 Billion???
I may be old fashioned, but isn't that on the GOOD side of a profit margin?
(It doesn't say whether its pounds, dollars, or peanuts.)
But i believe it means that once the stuff is coming out of the ground, the money will start rolling in.
It also means they should have some slack to drop their prices if need be to stay competitive, and still make a profit.
Just sayin'
Shaz247
Posts: 3,461
Opinion:No Opinion
Price:26.75
100k buy
Today 13:35
Nice
nomadicinvestor
Posts: 1,641
Opinion:No Opinion
Price:26.75
RE: Am I right?
Today 13:21
I’m of the same opinion. I’ve posted before of the similarities to ECO’s deal with Total. Ganfeng will want the full production on their books, not just 22.5-50%. In my opinion the time to take us over will be after the project review phase (3-6 months). They will then know exactly what we have and what they can do. After the phase, construction will start and it will be reflected in our market cap. At the moment investors are still nervous but when this gets going we will see those on the sidelines jump back in.

Anything over 100p a share would likely get approval at the point. I hope we don’t as I see the value long term far higher. It wouldn’t be too bad for myself having been long term but taken advantage of the low sp recently. If this recovered even to 40-45p I’d be back in decent profit.
Shaz247
Posts: 3,461
Opinion:No Opinion
Price:26.75
RE: Chinese comp will invest in Sonora
Today 13:09
Brilliant article.
Looks like the CEO was spot on with his interviews! Share price deserves a major rerate.
DCES
Posts: 124
Opinion:No Opinion
Price:26.75
RE: Chinese comp will invest in Sonora
Today 13:08
The Chinese company Ganfeng Lithium seeks to invest in Sonora through the company Bacanora Lithium, opening the possibility to a greater supply chain of this mineral for the electric car industry in Mexico.
Bacanora Lithium announced that the Chinese mining company Ganfeng Lithium acquired 29.9% of the project they maintain in Sonora . Ganfeng Lithium is one of the largest lithium producers in the world, and one of the main suppliers of this raw material for automotive manufacturers that produce electric car batteries.
The Chinese company was looking for a supply chain in Mexico, due to the proximity to plants where electric cars are assembled like in Arizona and California.
This investment positions Sonora as the first lithium producing state in Mexico, with the expectation of being among the largest in the world for the next decade.
In this first stage , 420 million dollars will be invested, which will generate 1,200 indirect jobs for construction and 260 direct jobs for the operation of the mining company. Expansions are contemplated as early as 2021, with an additional investment of 380 million dollars and 230 additional direct jobs.
Ford will begin to produce electric cars by 2020 , so this investment could open the door to a local commodity supply chain and a manufacturing chain for EVs in Mexico , at a time when most OEMs are looking to transform its combustion models to electric.
https://www.clusterindustrial.com.mx/noticia-detalle.php?noticia=1507
DCES
Posts: 124
Opinion:No Opinion
Price:26.75
Chinese comp will invest in Sonora
Today 13:05
HERMOSILLO, SONORA. MX. - Bacanora Lithium announced that the Chinese company Ganfeng Lithium acquired 29.9% for the project in Sonora, Mexico, said Jorge Vidal Ahumada.

The economy secretary said that the mining company pointed to Ganfeng Lithium as one of the largest lithium producers in the world, and they were looking for a supply chain in Mexico, and it is specifically in Sonora, where they want to invest.

A few days ago, Vidal Ahumada met with businessmen from Bacanora Lithium, who informed him of the intention of the Chinese company to invest in the Sonora Lithium project, from which several products of this strategic mineral of high demand for modern life will be obtained.

"The trust generated by the government of Claudia Pavlovich Arellano allows more foreign investors to turn to Sonora to land their projects," said the Minister of Economy.

The state official added that this project will position Sonora as the first producing state of Lithium in Mexico, and it is estimated that by the year 2020 the entity will appear on the world map of lithium producers.

He recalled that in the first stage of the company Sonora Lithium will invest 420 million dollars, generating one thousand 200 jobs in its construction and 260 in its operation.

Within its plans for the expansion stage, contemplated for 2021, an additional investment of 380 million dollars is projected, in addition to increasing to 490 employees, he added.

Currently they make adjustments to the construction budgets between Bacanora Lithium and the company ICA Flour, contracted as EPC (Engineering, Procurement and Costruction), for the construction of the plant 10 kilometers from the town of Bacadéhuachi.

The Secretary of Economy said that 95% of the workforce of this mine will be Sonoran, because they recognize the high degree of specialization of human capital in the technical development, he said.

This investment project brings as a main market the automotive industry of electric cars that are manufactured in Arizona, he said.
http://www.sonoraenequipo.com.mx/empresa-china-invertira-en-proyecto-sonora-lithium/
Si90
Posts: 319
Opinion:No Opinion
Price:26.75
RE: Am I right?
Today 13:03
You mean buy 29.9%, which gets their foot in the door, gives them chance for a bit of due diligence, and then bang, takeover.
The fact that the bod, Hanwa and the institutions all paid around 80p a share, I don’t imagine they would get it at these levels would they?
Shaz247
Posts: 3,461
Opinion:No Opinion
Price:26.50
RE: Am I right?
Today 12:50
It won't be surprise me if they just try a takeover soon. I think it would be far easier for them to offer a decent premium and be done with it.
They don't need BCN or anyone else for that matter. 250 year mine life of high quality battery grade lithium.
It can't be a coincidence they have taken 29.9%!
Newboy58
Posts: 10,812
Opinion:No Opinion
Price:26.50
RE: Am I right?
Today 12:02
Ahh sod it, it’s payday just bought a few more.....
degsie
Posts: 1,047
Opinion:No Opinion
Price:26.50
RE: Am I right?
Today 08:30
Olderand wiser
Thank you for thoughtful response.
1. I think I allowed for dilution .
2. Regulatory issues are in place
3.From the RNS GFL will speed up develoment and also reduce costs.
4. That is not impossible but unlikely as the demand for batteries is projected to grow enormously.
Olderandwiser
Posts: 8,922
Opinion:No Opinion
Price:26.50
RE: Am I right?
Today 08:08
Degsy,

I take your numbers at face value, and they do look a compelling value opportunity here.

But, and it's a big but, AIM is riddled with companies owning or part-owning a large resource with a huge mismatch between share price and independently assessed npv. The trick, for those with a long enough time frame of investing as opposed to traders using such figures to make a trading case and move on, is to decide which stories will genuinely deliver.

Why the mismatch?

Number 1 reason, finance on terms that do not heavily dilute the AIM co and its shareholders.

Number 2 reason. Regulatory/approval/licence issues in far-off jurisdictions (or even here in the UK!).

Number 3 reason. Outside partner issues, either in terms of playing the resource on their own time scale, not with the best interests of AIMco.

Number 4 reason, the underlying economics change for the worse as time evolves.

Now which of these factors might apply here? It surely is the case that BCN joins a fairly long list of such candidates, starting years ago now with the big daddy of them all, SXX.
wolfi_at
Posts: 133
Opinion:No Opinion
Price:26.25
RE: Ganfeng Deal
Today 07:34
I recommend these peoples to do some research about Ganfeng Lithium ... http://www.ganfenglithium.com/about_en.html
what they are paying for their 30% stake is one point but what they contribute in terms of connections, experience and knowledge is worth much more and will soon unlock the real value !

-> further optimization & commercialization of their chemical process
-> much better puchasing conditions
-> project experience which will hopefully avoid cost explosion and project delays (eg. NMX)
-> financial power, may even help with an additional loan if required ...

->
degsie
Posts: 1,047
Opinion:Strong Buy
Price:26.75
FT yesterday
Today 07:33
FT Big read - Powering the battery supply chain.
I am unable to post link but the phrase below was in article. Well worth reading.

"Lithium will in the near future be one of the most sought-after raw materials on earth" VW said
Shaz247
Posts: 3,461
Opinion:No Opinion
Price:26.75
Ganfeng Deal
Today 00:41
A few posters shouting at the top of their voices frankly sound silly to me as if BCN are proposing a deeply discounted placing with some obscure institution.
We await sign-off and more finer details but if it is as the CEO has stated in two interviews following the RNS, this has blue sky written all over it.
I suggest investors should read the RNS again and watch the interviews.
Ganfeng, the world's biggest lithium player, describing this as a 'cornerstone investment' for their company.
Some nuggets in the RNS spelling out the plan quite clearly, granted not in explicit terms as we await sign-off. These are exciting times but some have decided to look for negative slants for whatever reason as if the share price has been plummeting but it's holding its own. 30k buys over sells last session.
JollyJapesJonty
Posts: 142
Opinion:No Opinion
Price:26.75
RE: Am I right?
Today 00:38
Don’t worry too much about people not listening to you Degsie.

You remember this post? You made it during the time the CEO of Cadence (KDNC) was making that infamous webinar last December.
No one listened to your comments then. Here’s what you said [KDNC Webinar 10 Dec '18]:

“Have to listen again. Early on KM did say that KDNC's share of value of BCN & EMH was $130m about £100m. Market cap of KDNC £12m.”

I was sure that “KM” said something else in that webinar. Can you recollect his predictions about the BCN price by any chance, there Degisie? Nothing about a potential fund raise?

Remember that this BCN board went mad about it and even the BCN BoD issued an RNS to disassociate themselves form KDNC.

So don’t worry about today and people not listening to you. It has happened before.
Fukurokuju79
Posts: 612
Opinion:No Opinion
Price:26.75
RE: Am I right?
Thu 23:09
No what? You're not invested here? Or something else?
tomcat-14
Posts: 4,996
Opinion:Strong Buy
Price:26.75
RE: Am I right?
Thu 23:00
as stated in the rns... the £14,400,091 capital raised via the private placement and the £7,563,649 via the project level investment would be used for the continued development and commercialisation of the sonora project...
waccybaccy
Posts: 195
Opinion:No Opinion
Price:26.75
RE: Am I right?
Thu 22:40
Sorry about the last confused post. I realise $1.25bn is Sonora's value while $450m is what PS needs to liberate that NPV and GFL is aiming to reduce that $450m figure.
waccybaccy
Posts: 195
Opinion:No Opinion
Price:26.75
RE: Am I right?
Thu 22:38
But then, what is the £7m for? Why did PS not say it was a down payment of the total of $282m?

I realise GFL are expecting to reduce project costs but 22.5% of $450m is £80m.

So am I to understand that GFL are going to bring project costs down by a factor of 80/7 = 11?
waccybaccy
Posts: 195
Opinion:No Opinion
Price:26.75
RE: Am I right?
Thu 22:35
tomcat-14, that is what I read into the RNS as well. GFL pays £7m and gets to have 22.5% of the NPV, i.e. $282m

But that sounds crazy and clearly PS will not have given it away for that. If only he could be more clear in his comms.
tomcat-14
Posts: 4,996
Opinion:Strong Buy
Price:26.75
RE: Am I right?
Thu 21:10
no fuku... i trust my research...




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