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Brady , Bolgo seems to have been in touch with KC .
how sure are you the DD checks will be completed in december? From the previous RNS a date of 31st dec was set for the loan, i cant see anywhere saying specifically when the dd checks would be completed by - it could quite easily be by 31st march next year...
From Bolgo on HC :Agree.
KC in Perth atm. Was giving interviews to Europe last night.
Had been to Korea with CEZ execs.
DD should be done by early Dec
Significant movement at the station.
Well said Borocay . My guesstimated time line of announcements :
Expected Time line to March
Environmental impact study
Mining licence granted
3 Shift policy granted
Offtake agreement VW
Offtake agreement Northvolt
Offtake agreement Koreans in Europe ( possibly a few )
Agreement to increase production to 50,000 tonnes
Having CEZ on board now gives us creditability watch those announcements flow .
Me Answering penny Pincher on HC :
Penny Pincher , the way I see it we still as current holders have in principle 49 % of the business , having CEZ on board gives us the BIG bux and access to big bux to attempt to double the production , which I say will be on the cards . ( VW alone will need 300,000 tonnes of Li per annum ) Our PFS is 25,000 tonnes for one shift , I am sure now , that we will get access to 3 shift mine and on top of that the DFS will be expanded to 50,000 tonnes ( one shift ) . My figures indicate double the production increases profit 3 fold , no brainer in my eyes . And the demand is already there . I actually was expecting 51% , think in their shoes , I actually was worried it might have been higher , I am a little disappointed we did not get a 25% premium buy hey the markets around the world a little subdued at moment . Again thinking in their shoes there was no need to offer premium . So in a sense without CEZ we would never been able to attempt double production , so having half of what may be double in the future we have essentially broken even as a group . Going forward CEZ could easily fund the mine capex on their own , but KC has always eluded to 60/40 equity split , I will assume that the banks and other major funders will be begging for a piece of the action now and it would not surprise me that there will be very little dilution when we raise funds for capex .I have capex raise at aprox $750 mil for double production and expect 30 % will be new equity . Ie 40 % banks , 30 % cez self funded loan and balance new cap raise , and will assume a price somewhere between $1 and $3 dollars a share , at $2.25 a share we will only need to raise another 100 million shares . I see it as greater dilution at the start but less dilution in the future . My guestimate is 500 million shares at the end and it still will attract a very healthy share price . I still have them marked in a spread sheet for a $40 to $100 a share pending on price of Li and PE we get valued at . All and all a great result we get to keep our pants on and luckily were allowed to use a little lubricant .
Strange days trading in Oz.
Plummeted to -27.5% and then bounced back to -5% before one measly trade took it back to -12% at close. About $100,000 value traded for the day.
Over to you London .. Oz will follow your lead tomorrow as is usual.
If the government have a hand in the project, mining licences will be approved. With CEZ funding construction cost (£200mil??) we don't need a DFS and BFS. The only part of the study needed is the directing to point the shaft drill. Who cares if EMH is in control or not when they own 49% of a company that WILL a fortune as opposed to 100% of a dream. It's still a good deal. Tblisi needs to get off this board for a few minutes, take some deep breaths and get 51% on repeat out of his head.
As a LTH I have waited for many years for such positive news and had high expectations around this project.
As i read this announcement i am struggling to see the positive. According to KC the DFS was being worked on and if memory serves me, we should of expected it to be completed by Dec '19. Not the case.
We have entered into a takeover at nil value and gained funding upto DFS completion which was 'suppossedly' being worked on and near completion. So my question is what have we actually gained by selling 51%??? In my view nothing!
The story starts to read like brexit, kicking the can down the road on the basis of what!!
Maybe im being harsh but...
Listen, a few months ago I said that we should pray to get a deal with CEZ because otherwise there was nothing we could do to advance the Cinovec project. I could never think that that was to sell 51 per cent of Geomet for peanuts. Of course is better than not going forward at all, but we got screwed big time.
Fair enough tsibis but for me what makes sense is pretty relevant, at least to take into consideration. We can happily agree to disagree.
Is the deal optimal? Nope, but it was never going to be because CEZ were always going to negotiate hard. Was the deal necessary and acceptable? For me, it’s an easy yes and pending more info I’ll vote to push it through because it’s basically a major step forward albeit at a price that isn’t amazing for us.
I still will personally factor in KC’s personal posi
CEZ as the majority stakeholder of Geomet will make all the decisions, about everything, mining, takeoffs, financial matters. EMH will just become a bystander. ASX already 20 per cent down. I think the market is responding accordingly. Pity. Still have to vote for it but I think it will go through.
What say You now trolls???? Please convince us now that this is a great deal for the EMH shareholders.
Sorry mate, it doesn't have to make sense to you or me or anyone else. Who told you that everything has to make sense.
Tsibis that makes no sense to me. He’s holding 10mill shares or whatever it is, and doesn’t make the best decision to convert those shares into tens of millions of dollars and instead risks it all in a deal with the govt because he’s tired and can’t be bothered any more, after putting in this many years of effort? Doesn’t wash with me. Too much personally at stake imo
I don’t think KC has a lot of options in this situation unfortunately @tomcoves - guess this is the price of a Czech blessing.
Maybe he was getting tired of the situation and the shenanigans and decided to retire with a good package behind him.
So what’s you guys’ take on why KC has negotiated this considering he holds so many shares and has a vested interest in our success?
The office (EMH)
David Brent (KC)" I have good news"
Staff (us) "What is it?"
DB (KC) "I have given away control of the company"
Staff (us) "Why is that good news?"
DB (KC) "I get to keep my job"
If this goes through we will just be minority holders of a company owned by the Czech republic government, because that's what Cez is. Is not that we have so many assets and we decided to sell the majority in one of our companies. THIS IS THE ONLY ASSET THAT WE HAVE.And giving it away.
I am no expert in these things, and rely on what makes sense to me plus what I read here and there. That said, firstly we needed money and a strategic partner which we appear to now have. As nice as it would be to get 40p per share and not 21, I think it’s overly optimistic to expect much more than current market rate. I agree it’s a little scary to give away three out of five seats and effectively control, but KC has enough skin in the game that he’s not going to broker a deal without his own due diligence to protect his own position. Still, I agree it’s a bit scary. As for DFS, we probably don’t even need it now with CEZ’s ability to mine or arrange mining - we don’t need to convince anyone of anything to proceed with the project. Permits will hopefully come raining down now and intos just might now have the confidence to engage.
As I say not a particularly informed set of opinions but makes sense to me
In order to facilitate the
timely progressing of the DFS, Geomet will enter into a service contract with one or more third party
contractors, provided that EMH will be appointed to provide services of managing the Cinovec Project
So what happens if EMH is not appointed to provide services of managing the Cinovec project?
The fact is that we are losing control of Geomet and the Cinovec project altogether by giving away 51 per cent of Geomet. The money goes in the Geomet coffers for the further development of Cinovec and the DFS, which now is due in 18 months!!!!!!!!!!!!!!!!! We are selling billions for peanuts. The price that they are paying for the 51 per cent of Cinovec is ridiculous for the enormity that Cinovec is. I don't know what people here are celebrating, we sold ourselves cheap. And I am still trying to figure out what's in for us the EMH shareholders. 5 directors to be appointed to Geomet, only 2 proposed by EMH. We don't have any more part in any decision making as far Geomet goes. Correct me if I am wrong please.
Should be an interesting day tomorrow.
Just a shame i only have £500 spare for a top up, better than nothing i guess.
If my numbers are right and this investment buys EMH shares at the market rate, then we have only diluted to less than 300 mil total shares - a sensational result considering no further cap raise. I was expecting 400m+!
No more Cap Raises until Production Capex too Lawrence and Tom Coves , Share registry is still very tight , will be interesting when the world catches on to the enormity of the project now that it is derisked tremendously .