London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East and have access to Premium Chat. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Earache,the bottom line is the mine has to get to production ASAP whilst everyone can be fairly sure the demand for lithium and will be strong.
There are thousands of jobs at stake directly and indirectly and big tax revenues.
If there is a delay demand and tax revenue becomes less clear and technology may have moved on altogether.
Time is an oppressive task master.Every business man knows this
I dont see how you can say CEZ bring nothing ?
Do you see banks and venture capitalists queue up to finance AIM junior miners ?
Answer on a postcard.
Same applies to Ganfeng and BCN -- people moan this is a bad deal too...
earache - do you still hold EMH shares now ?
Tesla. Re BCN and Ganfeng. I agree that dilution by way of investment from a global industry leader who brings both cash and expertise to a project has to be viewed as positive and can turn the sp round quite quickly. CEZ bring nothing but will take as much as they can.
Interesting perhaps that Zemen's connections in China didn't bring Ganfeng to EMH. There would have been some logic in that. Even Chinese and Czech business practices are similar. Lol. On reflection it would have been preferable.
Looks like Lawrence had a good lunch. How does he get so much pap into a single post?
It's like talking to a brick wall, worse in fact, but I'll give it one more go - this time in KC's own words from the CEZ RNS:
- CEZ may elect to convert the principal amount to shares in the Company at any time up to and including the maturity date or in the case of an event of default by the Company or if there is a further financing of the Company.
- Any conversion shares will be issued at the lower of EUR 0.24305337 (the volume weighted average price on AIM for the month of May 2019 converted to euros) and the actual share price at the time of conversion."
N.B. THE LOWER OF THE AGREED PRICE AND CURRENT PRICE. Same basis will apply to any further investment by CEZ. It's got naff all to do with any conditional 'fair price' stated by our brokers in out of date reports which we paid for in the first place. Capiche?
Apologies Tesla. Always happy for corrections. I was only posting round figures from memory intending to just flag up the change in fortune of KC's holding, and therefore voting power. CDI's, subscription shares, etc. are all the same to me. If equity issues are admitted to trading then that's the total CDI's in issue on which all holdings notifications are based.
Checking back I note that on 4th March '16 we raised AU$1.755m by issuing 13m CDI's at AU$0.135 which brought total in issue to 100m, an increase of 15% over the pertaining 87m. https://www.europeanmet.com/wp-content/uploads/2017/03/4th-Mar-2016-PDF-85-Kb.pdf As KC was indirectly interested in 8.5m CDI's at the time his holding in Feb '16 would have been around 9.77%. By 1st June '16 we had 102m CDI's in issue and by 1st July '16 we had 121m in issue. https://www.europeanmet.com/wp-content/uploads/2017/03/1st-Jul-2016-PDF-85-Kb.pdf
By 21st Dec '17 KC's 850,000 CDI's awarded under the Incentive Plan had raised his holding to 9.35m out of the 140m CDI's then in issue, or 6.68%. https://www.europeanmet.com/wp-content/uploads/2017/12/AIM-21-December-2017-EMH-RNS-Equity-Subscription-and-Plan-CDI-FINAL.pdf After the placing at 18p last month we had 146.6m CDI's in issue and total voting rights stood at 150.8m with KC's holding down to 6.38%. https://www.investi.com.au/api/announcements/emh/e5ac8909-81c.pdf So we've gone from 87m to 147m in three and a half years. That's actually an extra 60m CDI's issued in three and a half years. Is that 70% dilution? And for what?
Still to come, however, are as many CDI's as can be bought with CEZ's EUR2m which of course depends on what they can drive the sp down to in the meantime. At EUR24.3c (21.5p) it amounted to around 8.5m but at the current 16p then it's nearer 13m. What price next month? And then an additional 15% discount to the market? Babis has let us do all the work, take all the risk, then stolen Cinovec from us. Grrr!
Slight correction his loan CDI's have a higher exercise price of 72.5c AUD - so even more worthless. In total of the 25m shares issued in the last 3 years mentioned, 3m of these are worthless loan CDI's spread between directors and advisors
Thought your numbers looked a bit harsh Earache, not having a go but just to correct the sums from yesterday:
Yes Keith currently owns 6.38%... if you include the 850,000 loan CDI's that he was issued last year under the management incentive plan. But my understanding is these are similar to call options with an exercise price of 48c AUD - so worthless right now.
To compare like with like, he has 8.5m ordinary shares which gives 5.8% ownership, down from 7% at July 2016 when he also held 8.5m shares. Don't know where you were getting 10% from - but open to correction.
Anyway, in that time the company only issued 25m shares (over 3 years!!). Big whoop. In context the company issued 46m shares between July '15 and July '16.
I’ve been personally involved in deals where upfront payments are made in order for a company to do (A). Due Diligence & (B). To secure the rights to purchase or if you like to get First Refusal ... Upfront payments are not paid in order to Shaft The Seller / Partner and sorry but it’s absolutely Ridiculous & Insane To Say otherwise, I can also assure you on both occasions I have had experience in, I actually received a far greater price than originally discussed as a result of Due Diligence & because legally Fair Value had to be applied.
I too have been invested here for a long time and I too have come across companies on AIM that have gone Tits Up lol lol lol but you can’t keep comparing other companies to EMH, all of these companies have there own problems and EMH have successfully overcome many obstacles already, Keith knows what he is dealing with and the best course of action to take.
We are dealing with a member of the EU
Australia has a Treaty with Czech
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, RIGHT PLACE.
WHIreland - Fair Value 68p
Shard Capital - Fair Value 76p
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!!!
Shard Capital has over £1bn in assets under management and administration, and a team of over 70 professionals including a number of award-winning fund managers......
But our resident skewed negative posting Earache would have us all believe that his opinions are in some way factual yet he produces no facts, because he says x y z happened to another company does not make it a forgone that it will happen to EMH, far from it, it is more probable that the same Would Not happen.
Ask yourself a simple question
Do you believe a respected company with over £1bn in assets & a team of 70 professionals including award-winning fund managers or do you believe Earache who says he is invested lol lol yet continually shouts his investment down ??? Fantastic Strategy To Make Money lol lol
I know who I believe
Finally, these Fair Value reports are done for exactly the situation we are now in, they give a firm base from which to Negotiate.
An Absolute Bargain Entry Level
In It To Win It ..... Snooze You Lose
There is some merit in what Earache says I wouldnt be completely dismissive. I have been in an AIM miner that was forced into admin by cash starvation and then the assets immediately taken over. It was admittedly in Africa.
We need more news now otherwise this will continue to bleed price and cash.
I am a very LTH in EMH and remember when it was 80p+...
Sorry Sid, tsibis is right. PI's like us won't get a say in it. Balance of power is with ARMCO and the top 40 holders who've been in from the beginning (1p?, 3p?, 5p?) and who, we're told, have been fairly solid. Directors, including KC, don't hold enough to block it and their options aren't worth a light right now. Remember that KC used to own 10% of a £100m company (120m shares in issue at 89p) but without selling any he now owns 6.38% of a £25m company (150m shares at 16p).
He knows he can do nothing to stop it. All we own are a some explo licences which Babis is not extending. If he runs us under they revert to the gov. He is the government, he's untouchable as the Storks Nest fraud has shown, we have to accept it.
KDNC's 18/19% is interesting. I believe we represent the biggest part of KDNC's value, certainly near term, but there's no way KM can afford to sell out at these prices, let alone at 5p. My guess is that even at 10p KDNC could be under serious threat. Some deep digging should should reveal my reasons.
I condemned the CEZ deal from the beginning as a gun to our head, not a white night. I said starving companies of cash was always Babis's way of getting what he wanted - he undoubtedly put the pox mark on us. I got blasted from all sides by those who couldn't read a simple RNS and grasp what the CLN terms meant. We can't go anywhere else now. We're forever under Babis's thumb 'cos he is CEZ and there's no other way of looking at it. Very sad but unfortunately very true. Dream on Lawrence.
In addition to this I would hope that KC's background in funding could help with negotiations and also his 'skin in the game' to get the best deal possible.
Not all doom and gloom tsibis - look at Bacanora. They gave up 30% of Bacanora and 22.5% of the holding company ie. the equivalent of our Geomet holding company. And they got all that at VWAP of 25c, no discount. Their share price nearly doubled on the news.
Although it has fizzled back a bit for now, only good things are coming for them down the line. Reduction in capex through the expertise of Ganfeng giving a higher project NPV, a debt facility to support the construction costs at a reasonable interest rate, offtake box ticked and rising prices for lithium by the time production starts.
So yes there will be dilution, that is the nature of the game. But the offsetting benefits (should) far outweigh it.
subject to shareholder approval I think.
Sometimes I wonder if you live in LaLa land. CEZ will pay the current price and will get shares issued at the current price. If you dream that Cez will get their share at 60 or 70p you are dreaming. And keep in mind, the same as you have to be in it to win it the same applies also you have to be in it to lose it. And I am not interested at any kind of purporting any kind of wisdom. I couldn't give a rat's what you or anyone else thinks. I am realistic, simple as that. Now you keep posting about who they are going to call and bull like that and when it will hit you you will probably be calling the doctor.........
Perennial pessimism is the easiest way to purport to having wisdom about a stock but it ain’t the way to make money. You have to be In It To Win It.
CEZ will have to pay Fair Value tsibis ..... unless of course you have some secret information or insider knowledge? And Fair Value currently stands at 68p - 75p
This baby is going to fly and Fly High
As I previously said, CEZ will get a big chunk of EMH at a ridiculous price and we will have massive dilution because of that low price of ours. Sadly that's the case. And we come to the point that we should pray for Cez to go through with the purchase otherwise i can assure you more than anything that we will go under 5p. It's not that far from where we stand now. Sorry if I spoil your dreams here, Including mine, but at some point we have to be able to distinguish between reality and expectations.
this is becoming rather frustrating, not too much longer hopefully
there it bl@@dy moves when you say some thing lol S@ds law . but some big buys and yes some round numbered sells whos selling and who picking them up?
When we have a good day of buying over selling we stay put and when it selling over buying we stay put, anyone got any ideas as to why?there should be some movement .