Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Often hinted at by Posters on this board,and now hinted at (possibly) by SMS that the Cinovec project may well go beyond 25,000 lithium Hydroxide and 22,500 carbonate, the DFS will be substancialy different to the PFS then,one other possbility of course is that the plant is used to process other mines Lithium , who knows but I would put my money on it being Cinovec lithium, as SMS employed by Geomet now.
Not directly involving EMH, but interesting as a background note on EU/Aussie Lithium Ion recycling plans:
August 3rd 2020: https://www.sms-group.com/press-media/press-releases/press-detail/neometals-and-sms-group-set-up-joint-venture-for-recycling-lithium-ion-batteries-1440/
"Neometals and SMS group set up 'Primobius', a 50:50 joint venture for the recycling of lithium batteries as well as the sustainable recovery of valuable constituents from end-of-life batteries
The objective is the commercialization of joint recycling technology for fast-growing volumes of end-of-life batteries
Primobius plans a demonstration plant in Germany based on the hub-and-spoke system"
It makes sense with SMS Group involved with Cinovec.
https://www.sms-group.com/br/press-media/press-releases/press-detail/sms-group-supplies-front-end-engineering-design-feed-for-europes-first-lithium-battery-chemicals-facility-1496/
Interesting comments here.
"Given the situation that in Europe lithium ion battery production capacities equating approx. 200 GWh per year are being planned or currently under construction and the fact that approx. 800 kilograms of lithium carbonate is needed to produce one GWh of battery capacity, the production volume planned by Geomet in the first phase of the project will only cover a small portion of the medium-term demand generated in Europe. This is the reason for SMS group to believe that there will be increasing lithium project activity right on the doorstep within Europe and this FEED contract appointment, at what is Europe’s largest hard-rock lithium resource, will put SMS group at the forefront of this developing industry."
First time I have seen a semi-official hint at phases beyond Phase 1 (22.5ktpa)!
Just to add a little bit more background: Anton du Plessis, CEO of Erris (ERIS) since October, 2018, was formerly a director of Canadian Imperial Bank of Commerce and, before that, a director at Bank of America Merrill Lynch and Morgan Stanley. He has worked on a variety of commodities and for AngloGold Ashanti, Rio Tinto and BHP Billiton in the past. So, clearly very much a money-man with principal interest in resources. Erris is planning to re-launch itself under a new name- Zinnwald Lithium PLC.
Bacanora's (BCN) recent move to move their Zinnwald deposit (neighbour to Cinovec, but in Germany) to Erris in interesting. Erris apparently have competence in Zinc and Gold sub-terrainian mining. I take this as a positive for EMH. BCN was never interested in developing Zinnwald. Real activity at Zinnwald may add motivation to the German auto-makers and politicians to take the combined Cinovec/Zinnwald deposit very seriously indeed. GLA.
Swings and roundabouts Lawrence...
Did you see this.. Ganfeng investing in a lithium battery recycling plant in Mexico, bodes well for BCN eh? I think you may regret selling out..
It looks like this may be close to Sonora..
China’s Ganfeng Lithium plans battery recycling plant in Mexico
https://www.ft.com/content/8739e8fb-2700-42b7-a407-461428124885
Hong Kong-listed Ganfeng, which has agreements to supply lithium to Tesla and South Korea’s LG Chem, has grown rapidly over the past decade into one of the world’s largest producers of lithium through acquisitions of assets in Australia and Argentina.
In May last year the company bought a stake in London-listed Bacanora, which is developing the Sonora lithium project in Mexico, the country’s largest lithium deposit. Mr Wang said the recycling plant could be near the mine, and both could supply the North American market with lithium for batteries.
Mr Wang warned against recent calls in Mexico to nationalise the country’s lithium assets.
Nationalisation may not be a good idea; there are many bad examples of nationalisation of resources,” Mr Wang said. “An example is Bolivia. There are big lithium resources there but for many years no project has been built because Bolivians don’t allow foreign companies to own mining properties. That’s a big hurdle for attracting investment.
You have to feel for BCN holders .... they’re paying $1.35M in cash to sell their stake in Zinnwald in exchange for new shares in Erris but Erris will need to raise cash so there will be share dilution in Erris ???
I said a while back when I sold out of BCN it was bad news and EMH were the best investment opportunity, no wonder Keith was not interested in it.
Seriously Looking Goooood For EMH
https://www.******************.co.uk/companies/news/929785/european-metals--keith-coughlan-talks-appointment-of-sms-group-to-lead-engineering-at-cinovec-929785.html
P r o a c t i v e in v e s t o r s
Around 5.50 KC discusses drilling.
Apologies Iain, I may have mis-interpreted the text.
Is the text relating to 30th April 2020 & 16th June 2020, relating to extensions to Cinovec North-West & Cinovec East, are these time extensions? Or future drilling resource extensions?
We are not drilling to find more Lithium, we are drilling to move our ore body up the JORC risk curve so as to make it more appetising to borrow against.
Interesting quotes abound in the RNS annual accounts
"Cinovec project fully funded to the decision to construct, paving the way for Cinovec to become the first European Union producer of battery grade lithium compounds from a local lithium resource."
Was hoping to see confirmation of Prague listing, but appreciate the annual accounts are tricky enough to complete.
Once on Prague exchange, local govt will shower EMH with positive news, as their buddies buy in and they start drooling over future tax revenues.
Interesting they keep mentioning additional exploration, are they likely to expand on the known 7 million tonnes of Lithium? Doesn't look like a huge expansion, but perhaps 8mt? (8,000,000 tonnes x $8000 per tonne is an incredible valuation...).
Toyota's annual global electrified vehicles sales could reach 5.5 million by 2025: Executive
https://auto.economictimes.indiatimes.com/news/industry/toyotas-annual-global-electrified-vehicles-sales-could-reach-5-5-million-by-2025-executive/78381406
a lazy 220,000 tonnes of lithium
We will wait for the Quarterly Activities Report and see ...
Drilling started as per the announcement on the 10th of August and a bit earlier as Cis18 was already due for completion at 275 meters. It's almost two months and we are still waiting at least some data from this first drill hole. Nineteen in total.
Or there is already snow in the mountains and we can't drill till next Spring???
What happened to these drill holes results? Don't we have even one ready?
Yes Elon said that Tesla is battery constrained. But Tesla will use different chemistries for different applications. Mr musk even invited Nickle producers live on TV to give Tesla a call(I would love to hear that conversation). Tesla has 3 different chemistries iron phosphate this is for mostly static applications. Nickle manganese moderate power and the high power low mass nickle battery these will be used for the Tesla semi truck and high end cars.
Fingersxed, Reading your earlier post with regards to PPL, their Off-take agreement and their rapid re-rate, EMH could be on a 10x Bagger from here, this is not a ramp but a sincere appraisal of the facts before us !!!
1.Cinovec is THE LARGEST LITHIUM deposit in Europe,
2.Cinovec is the Fourth LARGEST non-brine deposit in The WORLD.
3.Cinovec is centrally located for European end-users and is well serviced by infrastructure.
4. A GLOBALLY Significant Tin Resource.
5. Significant Hydroxide Results Achieved.
Cinovec is ideally suited to supply the right product at the right time into the growing European battery market.
The average operating cost for the Cinovec Project is $3,435 per tonne of lithium hydroxide after by- product credits. One of the Lowest in this sector.
CONSERVATIVE FAIR VALUE ESTIMATES!!!!!!
Shard Capital 30th March 2020
Fair Value 80p/sh
WHIreland 14th May 2020
Fair Value 84p/sh
“The valuation in the future of any project at Cinovec generating $150-$200m of free cash flow every year would be significant.” (Now Double It)
Warren Buffet :
“Be fearful when others are greedy and greedy when others are fearful." Time and again, the value investor has used this philosophy to pounce on opportunities.
NOW IS THAT TIME TO BE GREEDY
Seriously - Right Time - Right Place - Right Now
SNOOZE YOU LOSE
Simon Moores: What to expect at Tesla’s Battery Day and beyond. But Tesla’s ambitions and future plans will not come to pass without hurdles. “Raw material availability should raise the alarm bells for Tesla considering their rapid Gigafactory expansions in Berlin, Shanghai and Austin,” Moores said. In fact, unlike when the Gigafactory 1 in Nevada started, there are now 167 more gigafactories or battery megafactories competing for the same raw materials, as per Benchmark Mineral Intelligence data. ....For Moores, both quantity and quality of lithium, cobalt and nickel will be Tesla’s biggest hurdles to get right. Graphite anode and manganese will also come with their own sourcing challenges. “There is no doubt now that regardless of how well Tesla’s vehicles continue to sell, raw material availability will be the primary slowing factor on the company scaling.
The share price seems to react in inverse proportion to the good news flow. Very odd.
Including Northvolt colin h absolutely inevitable offtake coming , PLL were only 8.5 cents without off take too now 38 cents and market cap at close $440 million absolutely where EMH will be . The tesla off take was only for 8,000 tonnes , I bet our first offtake is 40,000 tonnes , so will that value us four times as much as Piedmont market cap ?????????????????????
Except of course Volkswagen, BMW and Mercedes a short distance away in Germany.
The difference is that PLL has an off take agreement with Tesla, and we have nothing.
Quick comparison….
Production PLL – 22,700 tpa LiOH
Production EMH – 25,267 tpa LiOH
NPV PLL – USD 1.1 billion
NPV EMH – USD 1.1 billion
IRR PLL – 26%
IRR EMH – 29%
CAPEX PLL – USD 545 million
CAPEX EMH – USD 483 million
Market cap PLL – AUD 411 million
Market cap EMH – AUD 67 million – (EMH owns 49% of project so double market cap to reflect full value – still only 134m)
The future is bright , right place right time .