Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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Investment Case Looking Great
Extremely Positive Sentiment
News Soon followed by a MASSIVE Re-Rate
I can see (in the not too distant future) that EV manufacturers with traceable green credentials will create a "kite mark" of some sort and use that to sell the benefits of their brand. After all,if you are buying an EV it may as well be one that doesn't pollute the world further through it's material supply routes. Cobalt supply has seen pressure , buyers are jittery and worried about consumer criticism .Nickel,Copper,Lithium and Uranium will all follow the secure ethical supply routes.
Nickel prices on the rise again …..
Looking Goooood for HZM
Right Place ~ Right Time ~ Right Now
BCN messed it up first time round because they didn't have a big strategic in place, HZM have secured one for $100m (currently in documentation). Someone close to the company kindly pointed out to me that JM confirms that in his video presentation delivered to the BMO Denver show (only the world's best projects get invited). Capex is $443 million (inc $65m contingencies) debt coming for $344m. They are in an extremely strong position here and have about +$30m in the bank plus whatever off take pre-pay might be out there. There's no point speculating the clues have been given and this will all become fact as the deal is inked.
As soon as he1 blows up I’ll be investing in this share. It has real potential and right now a good price which will go up when the finance is in place. Real opportunity to reach over 100 pence
Just to add I also don't feel HZM will sell out before production. They just seem in too strong a position to need to do that. I was in BCN and they were basic in comparison to all the work HZM have done. BCN sold out to Gangfeng (in the process of but it looks in the bag) but HZM just doesn't feel like that at all. Let's hope HZM can take this all the way to production and become one of the world's largest nickle producers at the forefront of the EV revolution. No one will be remotely wondering about 30p a share then let alone 6p. Hold on now I say!
Fair play Lawrence. Personally, let's just get the financing at a decent level, above 6 be great, anything 5 plus good enough imo, being realistic.
After that I'll start looking at the billions :) GLA
Then multiply your numbers by 2.5x to factor in Vermelho at ~1.5x Araguaia to get 'total Horizonte value' because that calculation is only for Araguaia and Vermelho is 'bigger'.
In January 2022 the last time nickel was substantially above $20k/t drops off the 10 year chart. That means if we enter 2022 at $20k/t then we are at '10 year high'. The market is missing the fact that nickel has been substantially undervalued for a decade, and what this means to miners in this decade. Or rather, the analysts harp on about it but for whatever reason it doesn't transpose into shareprices (yet). Maybe we need the last step of de-risking to realise '2020s' nickel value into Horizonte.
I fundamentally agree with LawrenceH - investment opportunity of a lifetime which is why I remain 80% investment in Horizonte. GLA
Anyone seriously worried about investing in HZM at 6p 7p 10p 20p or even 30p seriously doesn’t understand The Enormity of what HZM own and maybe should take a good hard look at themselves in a mirror and repeat T E N B I L L I O N over & over again until this colossal amount sinks in & if still unsure Move On
Good post Lawrence and agree with your pricing scenario.
This is why I am so keen that we get into full production and do not sell out too early.
Multibagger if there ever was one.
1. Araguaia is a TIER 1 NICKEL project with a HIGH GRADE Scaleable Resource.
2. HZM owns 100% The Araguaia Nickel Project, one of the LARGEST deposits in The WORLD.
3. HZM is ideally suited to supply the RIGHT PRODUCT at THE RIGHT TIME into the growing battery market - RIGHT PLACE.
4. HZM OWNS 100% A GLOBALLY Significant Nickel Resource.
Nickel Price US$20,000/t
Stage 1 :
Project Net Present Value (“NPV”) increases to: US$1.127B (post tax, 8%)
Internal Rate of Return (“IRR”) increased to 36.2% (post tax)
Free cash flow over LOM (after capital payback) US$3.74Billion
Capital Costs US$443.1M
——————————————
Nickel Price US$28,000/t as seen in 2011 US$28,250/t so highly achievable with increased demand through the EV revolution!!!
Stage 1 :
Project Net Present Value (“NPV”) increases to: US$2.093B (post tax, 8%)
Internal Rate of Return (“IRR”) increased to 53.5% (post tax)
Free cash flow over LOM (after capital payback) US$6.62Billion
Capital Costs US$443.1M
——————————————
Now Look At Stage 2 With Nickel at US$28,000/t
STAGE 2 @ US$28,000/t
Free cash flow over LOM (after capital payback) US$9.96BILLION
——————————————-
HZM is probably one of The Best Investment Opportunity Of Our Lifetime
Right Place ~ Right Time ~ Right Now
In It To Win It …… Snooze You Definitely Lose
IMHO