We chatted to IronRidge Resources' CEO Vincent Mascolo who explains why the company has become a lithium explorer. Watch the video 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 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.
Jimmy, this from the funding update rns on 27th December: " Initially, financing arrangements will be provided for enabling works...". Whoever they choose for funding, it seems there will be cash available to start work on site early in 2019. Placing, if appropriate, has been said to be at project level only, so shareholders are OK, imo. If it looks too good to be true, that 's because imo it is good and it's true.
We have been considering the impact of Brexit’s “deal or no deal” come 29th March 2019 and have been working in partnership with our major suppliers to draw up details surrounding some of the main issues affecting the energy procurement in particular.
What impact will Brexit have on the commodity price of Gas and Electricity?
Since the Brexit decision went through, the value of the pound has fallen signigicantly and so we have seen an increase in the cost of imports for all commodities, not just gas and electricity.
Dependent on the outcome of discussions around the Internal Energy Market (IEM), there may be the imposition of additional tariffs for the cross border trades which will mean UK energy costs could rise.
Is there a risk of security of supply?
There are strong commercial incentives for the UK and EU member states to continue trading and whatever the outcome, there will be a desire to find a workable solution.
Europe and the UK are heavily connected by our energy infrastructure and this is key to our ability to fill demand. There should be no physical change to our energy network although future plans may be delayed until full details of Brexit are in place.
Security of supply may come more into question if tariffs on trades were seen as an unreasonable and alternative approaches to supply and demand are needed.
How much of the UK energy supply comes from EU (and Norway)?
Approximately 50% of our gas supply comes from the EU and Norway.
Approximately 5% of our electricty supply comes from the EU.
What is the Internal Energy Market (IEM)?
The Internal Energy Market has been build up since 1996 to help build a transparent, fair, competitive and regulated market across the EU.
By exiting the IEM, the UK would lose voting rights for the various organisations that set the rules on how trades occur.
If the UK leave the IEM - a new free trade agreement will be needed to maintain the current tariff-free trading on gas and electricity - this would include covering items such as carbon pricing.
Optimistic I know but I put our retained equity figure in the region of 40-50%.....reason being we now have 4 offers that we know of at this stage. I think the first 3 term sheets received would have been for 30-40% but if this 4th offer turns out to be better than the other 3 then the others may come back to the table who knows? All to play for here but I hope that the level of interest Islandmagee has received may end up increasing our retained portion of equity.
As for money don't forget we still have further warrants to come into play plus Infa will effectively start receiving cash to manage construction once it has started.
So sorry. Just reported your post by accident. Big fingers. Admin this is not a report. Thank you
Does anyone think the company will get some cash as part of the deal? Was it February the last of the FEED grant comes in? Cash must be a bit low. I would like to see some cash as part of the deal to remove the possibility of a placing.
Thats what I’m hoping for
And then we have the potential of up to £40mill EU grant to think about...
I agree spud. 70-30 split would be my guess
I agree with 50% retained equity being slightly optimistic.
Slide 8 in the presentation shows equity split, I'm assuming it's just illustrative, but looks around 30% retained.
Can't see infa being capped at £200 mill on the first project but with 3 or 4 projects at different stages, imo, definitely a realistic target.
I think that Infa keeping 50% is probably a little optimistic. However I wouldn't say that Infa will never be worth £185m, it just might take a little time! Valuing the company at the moment isn't easy but the potential is plain to see. Personally I've hoarded a few away and expect many pleasant developments over the next four years or so. G&Ts on the beach? I'm thinking so, all courtesy of some hopefully good divi's.
"The combined FEED studies have delivered P90 cost estimates of Â£114m for Phase 1 and Â£265m for Phase 2". A total cost of £379m. This will be mini Sirius minerals on FID confirmation. If INFA kept half, would they be worth £185m? Plus upside of the additional caverns?
Sorry Spud...I see you pipped me to it while I was looking for source!
I just found it.
RNS 21st Dec 2018
'The Front End Engineering and Design (FEED) element of the Project was completed in November 2018 and the FEED report was submitted to the European Union in December 2018 in accordance with the Company's grant conditions. To date approximately Â£13.5m has been invested in the project.'
Some superb posters on this forum, again reminds me so much of the rely SXX days.
Keep it up folks and a Happy and prosperous New Year to you all.
Mcadder....swift and brilliant.....nice one!
Now that's what i'm talking about!.....If prospective buyers see this, then I'm sure they will wet their knickers!
Only thing I would say is I'm pretty sure I've seen somewhere recently that about 13M has now been spent to date.
Also can't argue with Spuds summary !!
Good one mcadder Slight correction Over £13.5 million invested so far ( from the more recent rns) 4 equity term sheets on JW's desk is testament to the attractiveness of islandmagee energy as a long term, secure investment!
Hi Setanta many thanks for your earlier reply :)
Snowman my earlier post wasn't intended to be an overall summary but if it's bullet points you want for new or would be buyers then here goes:-
• R.O.I & N.I undergoing major gas expansion programme
• Gas to replace Coal, Peat & oil for heating= increased demand
• R.O.I & N.I let down due to isolation/lack of infrastructure
• No gas storage in Ireland means lack of security of supply
• Ireland to miss it's climate change targets by huge margin
• Gas spot price volatility to increase = higher consumer costs
• Will benefit 2 member states therefore has PCI status
• PCI status includes storage facility and reverse flow of SNIP
• Strategic asset of national importance
• Qualifies or EU funding (FEED & earlier phases included)
• Ongoing application for another £40M grant (decision Feb 19)
• benefits from UK govt guarantee scheme
• Pioneering fast response facility will be first of it's kind in UK
• Potential reduced Capex costs of £265M from previous 320M
• Economics to be based on daily not yearly price fluctuations
• Advanced talks with 3 blue chip funders(4th now on the table)
• Recent letter of intent from offtaker with 6 interested parties)
• Huge interest with traders will help reduce volatility/prices
• Project has sense of urgency due to closure of Rough
• Application for additional licence for 15 more caverns
• Potential twinning of SNIP (allowing for Rough style facility)
• £11.5M + already invested in the project to date
• Seismic studies show Islandmagee only suitable location
• Potential different uses for caverns (decarbonisation of grid)
• Potential 40+yr life of project with 21.6% forecast IRR
• Fantastic bod comprising JW, GL, AD, JT and AR
• Plus bod who are aligned with shareholders with a decent %
• Full planning consents along with local support (RARE!!)
• Storage licence & environmental impact assessment in place
• FEED fully completed with all recent milestones achieved
• Recent land purchases undertaken
• Numerous LTH'S here unwilling to part with their shares
So as Spud says in summary BUY BUY BUY!!!
Buy INFA, its BRILL ;)))
I'm used to spuds very high calibre posts here but I rated mcadders latest as I described it.I made it plain that I saw it as A SUMMARY of a lot of valuable detail related to INFA. And that is what it was. I've been here a fairly long time and I am certainly well researched but if I were a new investor, or one thinking about making an entry,mcadders work would have put me on track to further my own research. That's all. Go well.
Setanta and everyone,
Please don't take this as a critisism. I am definately a Mcadder fan.
However, 'Perfect summry mcadder. There really isn't anything else one needs to add for the enlightenment of recent or prospective holders in INFA.'
Although the 16:14 post was a great post I would not describe it as it is described as a summary of all prospective holders need to know.
However, Mcadder himself, and Spud and loads of others on this site over the last 9 months or so (not to mention rapid dave) have delivered such comprehensive summaries that I definitely would have described as stand alone comprehensive summaries. Beyond my skill set but perhaps someone would like to take up that challenge to bring an updated comprehensive summary on board.
It would be worth it's weight in gold....the shorter the better....just bullet points....we could post it everywhere!....I'm thinking a sort of updated version of rapid daves summary early in the year....it was superb!!
Easy for me to say.........and a lot of hard work for whoever attemps to put it togaether....my dream team to work in collaboration on that would definitely incluse Mcadder, Spud, O & W and other stalwart posters on this site.
But my God....it would be good for potential investors !
Perfect summry mcadder. There really is'rt anything else one needs to add for the enlightenment of recent or prospective holders in INFA.
Definitely right to be sceptical when it comes to AIM Jimmy! Most advanced this project has ever been! The fact the NOMAD allowed the release of the last rns without a precautionary statement speaks volumes to me and I am very confident this team will deliver! We have several offers of finance, we are drawing up a shortlist of off takers. This facility is needed and more importantly for us wanted. GLA
Actually Jimmy it's 12yrs since the project first hit the drawing board - in the days when it was part of Egdon resources before being demerged to become Portland Gas and now Infrastrata Plc. Considering JW has only been CEO for 4 months here I'd say he has under promised and over delivered during his short reign. Lot's of failures by previous bod's with wasted time and money but Infa is a totally different beast now with the quality and economics of the project now proven up. Let's not forget they didn't even obtain a storage licence and planning consents until 2012. Some of the valuable seismic data obtained between 2005-2007 and the drill in 2015 to obtain core samples are now worth their weight in gold and probably helped to determine the possibility of a further 15 caverns being developed on top of the 8. Infa is sitting on a top quality asset with a bright future now thanks to a top quality professional bod.
I've got 1.6m shares so I believe the project will go ahead. But so does every investor in every aim share. All I'm saying is he has to deliver. So far this company has been on the go over 10 years doing this.