The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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. 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.
Haha fingers, my views doesnt mean im a knuckle head.
Ive been here a long time, of which i am entitled to offer my opinion and because i dont post all the time doesnt mean my point of view is less or more valid than yours. They are my thoughts -deal with it instead of calling people.
The response from the market is muted, which to me suggests it is not overly good because of our depressed price. However i am sure we will get an interview soon enough, explaining the deal in more detail to curtail any concerns. I dont wear glasses but if i did, they wouldn't be rose coloured they would be normal with a considered mind behind them.
I suspect Ant you need to find out, one % of all the soil content in Cinovec is Lithium , is this question a possibility to produce 300,0000 tonnes of LI per annum . When you think that technology changes in a moments notice , you must be prepared to make hay whilst the sun shines , no point building a mine to only succeed for three years if technology changes . Ya have to bash the F#### out of it early .
I do know that I'm deeply disappointed at the reaction to these developments.
I haven't got the faintest idea mate.
Ant , a question ? is it possible to move 30 million tonne of soil in one year , how many trucks will that take ? How many excavators will it take to dig the soil once a tunnel was built ?
Trufflehunter -- you are a 'cake and eat it guy' you seem to think that the finance flood gates are open to any AIM junior miners -- this is almost never the case IMO this is a decent deal on both sides...
sorry, that should read Geomet
EMH will not have £29 million cash...Geomet will.
except that we would have £29Million in cash as well as 49% of Geomet
If geomet is worth 66m, and we own half, then our mcap would be what it is... ie little or no movement from yesterday. Which is what's happening. But if that's how the market is judging this, and is not factoring in the consequent benefits, then I remain baffled. I only assume that it will come to pass.
Truffle hunter or should I say Earache lol lol lol .... your lack of understanding to the value of EMH shows your incompetence and inability to evaluate properly.
We are or will be Totally de-risked when this is finalised and to all intents and purposes Fully Funded through CEZ & other potential partners.
You’re continual Negativity & Glass Half Empty Attitude makes you what you are lol lol your post is absolute ... garbage .... but hey you’re entitled to your opinion too.
Stop being a control freak and move on, your constant trolling is unnecessary and damaging.
Some Facts:
1) A €34m investment for 51% of Geomet gives it a value now of €66m or £57m, Double our current MC......
2) We retain a 49% interest in a project with a NPV of $1.1Billion +++
3) Up till now it was in CEZ’s interests for EMH’s SP to be suppressed. Now it’s in their interests for Geomet’s (and therefore EMH’s) value/SP to be maximised.
Get A Life , THIS IS AN AMAZING DEAL
Well discombobulated am I. Fried brain. At the market's response to this. Perhaps it takes time for the news to be disseminated and thought about.
Lawrence H,
I'm glad you're not my accountant. I really don't know how you can post such absolute carp.
It is in my view probably true that this type of deal was the only option available to EMH if we were ever to realise any value to EMH shareholders from Cinovec in the longer term. Whether you view it as part nationalisation, loss of control over the Cinovec project or a sensible deal, our weak bargaining position with the Czech government, massive funding requirement, lack of mining permits and being strangled by lack of cash to progress the project meant that Keith really was not holding a very strong hand.
I am relatively optimistic that over the next 3 years or so, when the project may finally begin construction ( not really clear when this may be ) the share price may be significantly higher than it is now. Is it the outcome I hoped for 2 years ago? ...NO. Is it sensible given our increasingly weak bargaining position ? ...... probably YES.
You may have a crystal ball Lawrence, but let's just be honest please and recognise that NOBODY on this board knows how this is going to play out. What you posted this morning is absolute ****** and I'm afraid it just undermines anything you may post on here if you really think that this is true ...... ' values us today at 44p ish pre -funding'
You are as entitled to your view as anyone else ....but please do not post figures that are clearly incorrect and present them as fact. Who knows, at some point in the future EMH may have a market value of 44p pre-funding but we sure as hell do not today however bad your maths are.
Good luck to all LTHs here .....I hope our patience will be adequately rewarded.
We can be sure that CEZ would not invest into this if they didn't expect a good return on their investment. They'll have made sure other things (like finding a buyer for the Lithium) will come into place before they wrote the cheque. And they're 70% state owned. Now, sure, utilities and mining are different departments of the state, but surely they'll also have made sure that no licensing problems are waiting down the track. It's a huge vote of confidence, IMO.
Sambora , you knuckle head , FFS we did a deal at market value , You should have bought the last parcel yesterday at 24 p . All of the shareholders here should have . I am so annoyed , FFS lets go and raise 33 million in current market and see what sort of discount we would have had to relinquish to the fund raisers and the 300 odd K it would have cost us raising those funds . Get a life pessimists > my figures show we will only lose 25% of the eventual outcome in share price and really who cares Lithium will be $30,000 a tonne and with double production will create a share price beyond those of wildest dreams .
CEZ have just pumped 34 million euros into the thing. Which will take us to the point of production. The cost of building the mine and processing facility is what... 500m?... We'd have had to raise that ourselves eventually. There'd have been huge dilution. This is a good deal. And it guarantees us a future and a large holding in a massive project that's worth a fortune.
I understand whilst people might think that shares are now safe, however they are not.
Lets be honest CEZ have bought 51% for peanuts, future dilution? of course! do we really think that 400m is going to be paid out by the company as cash.
Reality is we will get as much dilution from the company to raise capital as we would of anyway. The same as if we had gone to the market. The only difference here is that we will get government support now which has cost us 51%.
Part state owner ship, often through a pertly state owned commercial entity, is common throughout the world in all extractive oil and mining industries. had a partner been Chinese, they'd almost certainly have ben part state owned. And elswhere across the world, the story is the same. Here's a couple of mentions..
https://resourcegovernance.org/sites/default/files/nrgi_StateParticipation_20150311.pdf
https://www.theguardian.com/business/commentisfree/2018/oct/09/following-the-money-where-chinas-40bn-investment-in-australia-is-going
It would be easy to find more. I found these in 30 seconds. I don't have a problem with it at all. As for the loss of majority stake, what did anyone expect? CEZ have all the money and the ability to move this forward. 49% is, in my opinion, the best we could have hoped for. Well done Keith.
This massive project will fly and we, an AIM tiddler, own 49%.
The way I see it it was either this or drip-feed placings every few months, I think we got the preferred option really. Half of something that is huge and will happen is better than 100% of something that may never happen and has trillions of issued shares !
I doubt a long term plan. Rather a sequence of events that drew attention to an issue that needed to be sorted.
There will be a lot of PIs who will be surprised at the loss of a majority stake and were in this for a hoped for bumper payout on the deal announcement. They are currently selling. Hence the ‘muted’ response so far. Once they are out, this will begin to build positive momentum imo, for the reasons stated earlier.
Interesting. I am trying to consider how the due diligence and competitive landscape of EU raw materials strategy, finance, CEZ, EMH, Babis all fits together.
While this agreement today is interesting and I am grudgingly positive about the long term benefits of this deal, I find the timeline interesting. Many boxes will have needed to be ticked, PR, advisors, banks, loans, lawyers etc. But when signed off, actions and projects will probably be announced like dominos.
How plausible is it to believe, that it is purely a coincidence, that Tesla announces a $4bn auto factory in Germany 72 hours before the largest European lithium mine secures funding? In the same month that Volkswagen's first electric car factory in Zwickau (60 miles away) enters full production?
It almost reads like there was a long-term plan among some senior leaders somewhere. So long as it works well for my wallet, I find myself quite optimistic this morning.
Surprised the market has had so little response to this as it looks like a very good situation to me ?
Well said degsie, this is a Win Win and actually values us today at 44p ish pre-funding ..... this is bloody amazing
Fully funded who knows where we will be 90p - £1.20
Great News & when the market wakes up to the Enormity of what we have the sky is the limit.
There are positives for shareholders to consider with this deal that go beyond a simple examination of the deals valuation, including: it would de-risk the remaining 49% interest in the project financially while final studies are completed during a financially challenging market; the deal would bring synergies with the Czech Republic Government, which holds a 70% in CEZ Group, de-risking the project from a geo-political perspective; and having a major strategic partner with experience of completing major projects and could help fund and source funding for the development of the mine, would de-risk the construction of the mine.