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Liking the 108 and growing bit, bodes very well indeed for Ewoyaa.
of course PLL foresaw all this when they did their DD and voted with their wallet here...I've always maintained, a shrewd tie in from their perspective, this bolsters and diversifies their future production capacity; they have known customers in place. All very strategic, clear thinking for mid 2020s and beyond
I was doing some digging last week on our Ivory Coast Lithium assets and found a really interesting snapshot in time in an IRR RNS;
https://www.rns-pdf.londonstockexchange.com/rns/0903Q_-2016-11-24.pdf
Note the reference to Goulamina (and how much better located out pending license assets are!), this time 5 years ago that resource was 15.5mt @ 1.48% Li2O. As per the most recent DFS from Firefinch, the resource is now 108mt and still growing...
No reason to think that Ewoyaa can't do the same, and the huge difference is our location. It will take trucks a 7 day round trip to get Ore from Goulamina to the nearest port - good luck classing that as an ESG friendly investment!
I think next near term catalyst and the 'low hanging fruit' here is to get the 14.5MT to something with a 2 infront. Rigs have been spinning for a good while now...
For those who recall Mr Phillip's recent comments; where it could end up is potentially many multiples of 14.5. Ewoyaa has a lot more to give imo
Not sure why Vince thinks complaining about Liberum or comparing ALL to Lionstown will help the share price. Now the housekeeping of spinning off Ricca is essentially done from a PR point of view, there are many pieces of news which will help encourage a re-rate;
- Updated scoping study to incorporate the 2021 Ewoyaa drilling, key elements are scale of resource growth + what long term spodumene price they use,
- Formal confirmation of Piedmont committing to the $17m stage 2 spend, page 6 of the recent investor presentation states that "Stage 2 - Investment spend commenced". Nothing RNS'd yet though?
https://static1.squarespace.com/static/61711d27ed0db12cacbcfb5a/t/619e35bafde1fe5095ad5a30/1637758402398/Atlantic+Lithium+Presentation+-+November+2021+Final.pdf
- Confirmation of the timeline for 2022; when are we aiming to complete PFS / DFS work? Again specific targets make the market take notice
- When are we aiming to commence production? Vince was adamant it would be 2023 in the Proactive presentation, I'm assuming this will be the second half of the year as we need to build the plant first & Piedmont need to fund it...
All of the above will increase demand for shares, there are plenty of long term holders & large II's holding shares who believe in the story so supply is tight, if they deliver then the price will be way higher than here come the end of 2022 & 2023.
The main thing is we have no debt, are fully funded to production & a growing high quality, low cost resource that isn't far from production. Liberum won't have a 32p target once the above items have been released / confirmed.
If true (not to doubt you), ceos should never rubbish another resource, rather promote the virtues of their own, bit of a cardinal rule. Probably frustrated, for which i can empathise. Unfortunately we all now face a new troubling period courtesy of covid.
Cherryburn - a question if i may, and I'm really asking jsust for context.
Are you an investor in Liontown and did you find Vincent's comments arrogant because they were at odds with your own thoughts?
I ask because i struggle to be dismissive of Kathleeen Valley in particular, which is large tonnage and with good grades and promising economics.
Maybe any comments were with the valuation in mind? At £1.8bn it's certainly carrying fairer value.
I think, as a long term holder of ALL and IRR as it was known, that Atlantic Lithium represents a fantastic pivot play for lithium bulls who have played the Liontown story nicely. I believe that drilling results from the most recent campaign will add nicely to the current resource and once the scoping study is updated accordingly we're going to see Ewoyaa story for what it is... an up and coming challenger for the best hard rock projects out there.
It will take further drilling of course to catch up further to the Liontown tonnage and it's foolish to do anything other than dream of getting there but ultimately Ewoyaa doesn't need to. The quality infrastructure and lowest quartile costs mean this project is going to be prioritised through construction and the high quality product should position us nicely for premium pricing.
Confident, arrogant it’s the same thing. I’m guessing he’s got a few million reasons to be confident.
It is a shame if Vincent came over as arrogant, as this would not have been his intention. It is probably born out of frustrations at the AIM market, and brokers the likes of Liberum, who you would question the work they do, or don't do for the company. The other side his total confidence in having the worlds best hard rock spodumene deposit, which is not getting its just recognition. I am a totally confident LTH, and time will tell.
Mike......I need to see the results of the next round of drilling and more metallurgical testwork but certainly an interesting story. He went on to say that London does not understand lithium and the Liberum price target was way too conservative and he went on to rubbish an ASX lithium deposit (ASX:LTR). VM came across as a bit arrogant .
cherryburn, could you expand a little on your comments ?
Mike.....it will take a big resource upgrade to get this moving but having spoken to Vincent recently , have decided to hold off buying for the moment. Hope his performance at the December Investment Seminar is better than the 121 Zoom calls this week.
different name same sh@t sp wise.
beggars belief under 20p to sell again.
when is the resource upgrade due, any ideas ?
It's just a trader or flighty PI of the view they can buy back lower IMO.
Good luck to them.
Yes the options are a real statement of intent. Sure, the wider market is down today, but how does any existing shareholder read that RNS and think 'that's odd to be giving options to a US PR company at 50-150% above the current share price, let me see, I think I'll sell my 88269 shares at 19.76p...
For anyone with an ounce of common sense it's another extremely positive sign.
Ignore that last bit. 1 year 9 months.
Still shows the strength of the short to medium term investment case. I just can't count...
Completely agree ShearClass.
Vincent has in the past been criticised for a lack of stimulating AIM punters during quieter news periods so it's only fair he gets praise now.
Rebrand looks spot on and there's been plenty of media pushing the investment case.
Today's option award is quite interesting shall we say. Let's not forget this is to a firm for their ongoing services and therefore the company will want to ensure those options get nicely in the money.
When do they expire again? Less than 9 months time...
I've been hugely impressed with the PR & communication over the last month, it's been first rate. The UK market seems blind to the opportunity here, it absolutely baffles me that so few new buyers appear willing or capable to do the research or maths to figure out the value gap on offer.
- Full funded to production via Piedmont, who are jointly incentivised to get this done as quickly as possible, seeing as they are 50% equity owners in cape coast lithium & 10% in ALL & need the supply for it's Tesla contract.
- Aiming for production as soon as 2023, as per Vince's presentation last week. PFS & DFS expected in 2022 which should confirm value.
- $22m cash, zero debt, and absolutely no threat of it.
- An asset in Ewoyaa that is truly unique in it's location & low cost characteristics. DMS only, simple process flow sheet.
- An NPV of $345m / IRR of 125% at just 14mt and $650 spod price with an imminent upgrade on the way.
- Huge exploration potential, part funded by Piedmont, boosted by Monday's grant of an exploration license (which had been pending for 5 years)
- In addition, we have pending exploration licenses in another 2 locations that if granted would provide significant upside; we applied for licenses in the Ivory Coast way back in 2016, they are located just 75km north of the capital city Abidjan & appear to be just as well served by infrastructure as Ewoyaa. I noted that the IRR presentation this week mentioned the 100% owned Ivory Coast lithium portfolio. The second with huge potential is Egyasimanku Hill, again a license application was lodged way back in 2016, just before the most recent cape coast license was granted this week.
And yet there is zero interest! Worse than that, we are down 7.8% this morning on a handful of small sells, yes the market is poor, but contrast this with Savannah resources, Zinnwald lithium, European Metals & Bradda Head which are flat... You'd think our project was on the moon rather than in Ghana!
The company appears to be working hard!
The options appear to be a great incentive for the NY co to increase U.S exposure and drive up the mcap on the otc which should see the ALL s.p hopefully reach the options trigger points of 30p, 40p and 50p.
It will be interesting to see what tactics this NY based company adopt. Either way, shareholder value is on the cards as lithium prices rise, demand increases and majors are looking to secure future supply.
Expect bigger money to start moving in now!