Cadence Minerals: From REM plc days to present & what happens next, 2.8.232 Aug 2023 16:37
I cited below Kiran Mozaria, CEO of KDNC's interview with Stockbox on 31 July 2023.
Mr Mozaria was so enthused about the success of their investee co, EVERGREEN which KDNC listed on the Australian Stock Exchange and has such a HIGH MKT VALUE of some £27m [A$60m to A$53m recently] WITHOUT 1 SINGLE DRILL
carried out on BRYNOE [old name Litchfield, Northern Territory, Australia NEXT TO CORE LITHIUM'S FINNISS Lithium project].
[1]So, I went back to have a look at what Mr Mozaria said about Litchfield and came across his interview with VOX.
Mr Mozaria said that KDNC INVESTED SOME £800K INTO THEIR 3 AUSTRALIAN LITHIUM LICENCES and their
share of some 8%+ is worth £4.1 Million. YES, A VERY GOOD RETURN as said in such a short time.
-----NO WONDER WHY AT THE LAST AGM of "we dont make much of our Australian assets" to current thinking of
looking for perhaps MORE LITHIUM PROJECTS. !! Hence, those going to the KDNC 2023 AGM should ask Mr Mozaria more about this IF THIS IS THE DIRECTION FOR KDNC moving forward???
[2]Here and there, from the 2 interviews, I get the gist that for AMAPA , the iron ore project, Mr Mozaria is looking for a trade sale, JV etc OR LIST ON THE AUSTRALIAN STOCK EXCHANGE ie SPIN OUT. So, have to wait to see.
[3]SONORA Lithium, Mexico --KDNC 30% JV.
KDNC's broker has produced a broker note and they used the sale of Bacanora LIthium to Ganfeng to do the calculations and provided TWO figures, one discounted and one not discounted for country /sector risk etc. So, that is going to be as and when.
KDNC IS STILL AN INVESTMENT CO.
For this reason, it depends on what happens to Amapa. If KDNC does a JV or sale or spin out, it will mean that
KDNC will be back to the days of REM plc. Why? Does it go with 1 project in the main ie at Sonora? Or does it go the
post REM plc days ie investing in early stage junior explorers?
Mr Mozaria is cognisant that the market will not attribute a value to Amapa to be reflected in a higher mkt cap attributable and this is from Mr Mozaria himself on 31 July 2023. Why? Since Amapa is a iron ore asset of which they are part owners, the market wants to see CASH FLOW , EBITDA to fully provide a note for a higher valuation.
This is why KDNC is and Mr Mozaria himself is cognisant and therefore the future of KDNC will rest on the strategy moving forward. KDNC is not alone in this and as Mr Mozaria said, SONORA would have already come to PRODUCTION
if REM plc [old name for KDNC] had been successful in taking over Bacanora Lithium at £1. Gen did not offer £1.
Many commentators like Seeking Alpha said that with LENIGAS GETTING IN TESLA, then funds to develop may have been forthcoming from the market as norm as they see a potential off-taker in situ.
Now, that same TESLA is building a giga factory on the doorstep of SONORA and I wonder where the lithium is coming from? Those from REM plc days will remember what old timers talked about ie SONORA is on the DOORSTEP of car manufa