Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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https://www.bushveldminerals.com/other-investments/
Since 2008, Lemur has invested over US$10 million in developing the project.
During the first quarter of 2019, Lemur concluded a US$1 million facility agreement with the Development Bank of Southern Africa for project preparation finance. This facility will be used to complete the remaining project development activities and pay for advisory services to enable the project to reach financial close.
Due to the effects of Covid-19 we anticipate that the project will get to construction readiness in the first half of 2021 and attain financial close soon afterwards. Discussions with lenders are expected to be concluded during 2020, once the key studies such as the SEIA and the mine definitive feasibility study are completed. Subject to financial close on approximately US$160 million of funding, the plant commissioning date would be 2022.
Anglo American to demerge South Africa thermal coal operations
https://www.miningreview.com/coal/anglo-american-to-demerge-south-africa-thermal-coal-operations/
Thungela’s shares to be listed and admitted to trading on the JSE and LSE on 7 June 2021.
The proposal also allows Thungela to attract new shareholders and
to access new sources of capital as an independent company offering direct exposure to thermal coal.
https://www.thungela.com
https://www.thungela.com/downloads/thungela-media-release.pdf
Madagascar is desperate for electricity. Not much of the island has power, especially where this mine is. The fact is coal power has more chance of being built in the short term then renewables. See :- Climate change: Africa's green energy transition 'unlikely' this decade. - https://www.bbc.co.uk/news/science-environment-55620848
This project on completion would be worth in excess of $200M? conservatively. Fortune is being quiet about it, perhaps a) does not help his green narrative for vanadium and b) moving the project on to beyond financing and perhaps construction, before disposing it for big money. I do not see it being retained beyond that, but in business you do not show your hand.
I would not be surprised if Lemur was developed alongside solar/wind and batteries, so that the coal station is small and carries the base load, with batteries helping with peak demand. Fortune is a vanadium salesman after all! Is BE involved?
Just don’t write it off cheaply.
Madagascar - If they choose not to go down the coal route what other source of electrical generation will they have I wouldn't write it off just yet. Be it BMN or A N other someone will provide the goods.
Yep, and you may well be right about the speed of the green revolution, but even so, even now, FM will have an immeasurably far better idea about the timings and travelling direction he wants to go in order to maximise shareholder value from the eventual disposal of Lemur than those who think they can run the company better than he can.
This was from the Q1 update, May 2020, the last reference to Lemur that I can detect.
'Engagement with potential lenders for project finance is still ongoing with the objective of achieving financial close now expected to occur within twelve months.
Lemur is in continued discussions with Sinohydro, a subsidiary of state-owned Powerchina, and other potential strategic equity investors for the implementation of the Imaloto power project'
Still within the timeframe set back then so we might hear something soon. Covid might delay it further but the pandemic was well under way when the announcement was made. I can't help feeling though that this project has been caught out by the pace of change of investor sentiment towards green energy and away from fossil fuels. It also feels a bit like the embarrassing elderly relative in the Bushveld family.
We will have to agree to disagree Libero....
You comment about spinning it off rather shows you don't get either it's current value or potential value or indeed the reasons Afritin was spun off... But then you have not been here as long as many
I rather trust FM has it in hand... Or it would have been sold for $1 a couple of years ago !
Understand where you're coming from saying you do not want to flog Lemur for nothing, Faramog, but do you know how much money has been spent on developing Lemur? because I'm unconvinced it's all that significant nor do I think Lemur is really worth that much either, so there may be v few downsides to flogging it off.
This small non-producing asset is so far out of the strategy of the company it's not even been mentioned in a RNS in god knows how long (does anyone know?)
And, without even being mentioned, it's doubtful that many companies will be knocking on Fortune's door at all, let along keen to offer a large sum of money for it. If Fortune is waiting for someone to come in offering the right price for it, we could be waiting 1 year, 2 years, 3 years, or possibly much longer.
Meanwhile it is putting off all many of ESG and Green -focused funds/trusts/ETFs with strict 'No Coal' policies from investing in BMN despite all its green credentials and who knows where the share price would be right now if that roadblock wasn't there.
In my view, it would make a lot of sense to engage with a bank to value it and sell it off or help spin it off AfriTin (ATM) -style and realise value for it that way.
The sooner the better because the attractiveness of anything coal is only going south as time goes on. i.e. it would've been better if they had done this years ago. What's done is done, but why wait any longer?
In fact if they had done that years ago it's possible some of the finance deals / CLN would've all been at higher share prices, which would've helped the company achieve it's ambitions. In that sense I believe holding on to Lemur even though it is not doing anything, it not only counter-productive to the share price, but also has come at an indirect financial cost / opportunity cost to the company. And that will continue to be the case in future when the company inevitably needs more financing to realise its huge ambitions in future.
Consequently I feel Lemur is so detrimental to the share price and the company as a whole that the day we finally get the RNS confirming that it's being disposed off / spun off / sold off will be the start of a significant re-rate for this reason alone. This is why I include this in my list of about a dozen or so share price catalysts. Know it potentially could be a while off but it's clear it will happen eventually, and actually the recent "house keeping" suggests it could be round the close at hand ...