Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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Anybody think we might get an offer pre financing? The reason I say that is this - once financing is agreed and big IIs are locked in with their big holdings purchased at a higher price - they just aren't going to give that away cheap in the future, vs their share of the production. Once Orion have a 'wedge' of this in whatever shape they are coming into it, it will be more expensive for Teck or Glencore to buy it. At the moment, Teck or Glencore don't have to buy Orion out, they have to do a deal that is mutually agreeable and agreeable to the wider shareholder base which now consist more of PIs (Griffiths/City Financial/JPM gone) and PIs will take less jam now than more jam tomorrow, tends to be the way.
I don't know if majors like buying at this stage but they are guaranteed it cheaper right now, and possibly in light of the current macro problems even more so, than ever again. Post financing Horizonte's sale prices increases dramatically I would think.
pickedpeck - agree, when I've done the sums it looks doable in the 7-10p range and that fits your analysis nicely - JM wanted the mcap to be £100m which is conveniently close to 7p and is probably and hopefully the starting point for negotiation, then the existing IIs who have paid more throw their hats in the ring and state their numbers. It must be a delicate negotiation but for my money still 7-10p range looks most likely I would be surprised if we get more.
It must be a very odd situation - Orion wanting an entry and would probably take a good chunk of equity perhaps at premium above the existing holdings - if they paid equivalent of 10p or similar for a seat at the table, they would perhaps be willing to part with a bigger number per share for a much bigger slice. But on the other hand, Teck and Glencore if they want to maintain their position not only as % holders, but with an eye on the 'long' game, don't want Orion to take more than they could potentially buy out down the line. A very interesting situation.
There's an outside chance this is a sellers market (obviously macro isn't supportive but the initial Orion deal bodes well). If so it could be that the board are holding for best price rather than just agreeing the first thing that everyone can agree on. At the end of the day their job is to protect and reward shareholders (of which we are some, obviously the IIs also) by not financing it on the cheap.
I take comfort from the fact that 7-10p would get the job done without massive dilution if all the other parts (debt and offtake) can play their part. We would be in a much worse situation if say we needed 15-20p to get it done.
Morning dj, I almost sold out here after doubling up but hanging around for a while longer and review again at 4p (I think you might have sold out of GGP too soon and got your timing spot on with SML!). gl
Added another 200k this morning. I listened to the presentation again last night, clear that the debt part is sorted and equity is in negotiation. I suspect the shareholders they are trying to protect from dilution are Teck, Glencore, and Canaccord rather than you or I so they are likely using the last 10p Glencore transaction as a reference rather than the current open market sp. The question is how far from that will a compromise be struck, the clock is obviously ticking and there are likely multiple interested parties.
The comments regarding Vermelho and inbound interest were also very neatly played by JM. I'd be amazed if Teck had not at least discussed taking the lot.
It was said end of last week that traders who sold would likely be buying back in closer to 4p. There was a very small window Friday morning to sell above this level. Those who sold and hoped it would drop back below 3p before buying in are probably kicking themselves. Well done to those who did buy back in before this level. Wasn't expecting such a swift recovery to these levels.
I've said it before theres more to lose by not being in this especially as game changing news could land any point over the coming weeks. It isnt going to make much difference whether you bought at 3p or 4p once this is in double digits!
Also would love to know what % of JPM shares went to institutions and how much was mopped up by PIs. There is definitely a lot of PIs in this stock on an accumulate strategy (me included), we've seen City Financial shares all find a home, now JPM, and the only Cannacord have added as far as I know on the II side. I know some PIs will trade the swings but I think the majority are here for the financing (at least) and the closer we get to financing the less likely they are to sell and take profit -> all points to shareprice rising.
I think Horizonte's 'FOMO' moment will come - what we know is JM would like the shareprice at 7p for financing in 3-4 months and we are at 3.5p now. To earn his bread he has to make that happen so we can expect newsflow to start anytime soon IMO.
Interesting share HZM on the trading volumes side - today we are up on relatively light volume (I have sometimes bought more than the combined volume so far today myself on a morning). Once there is no background seller - and lets face it it looks like we've pretty much had 1 maybe 2 IIs selling since the Orion news, and once the profit takers are out this really is very illiquid for a £50m mcap co so once we see interest it moves up fast.
Just a preview of what will happen on news I think. The shares are pretty tightly held I think it will be hard to buy when news lands and the rises will be rapid as MMs won't be able to fill orders.
It was the same when i bought in.
Its easy to tell just looking at the trade price.
if you check my post history for HZM you can see when i posted my trade which showed as a sell.
Good progress today. Like i said, Q3 is weeks away and this will raise again approaching Q3.