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Thank both you and Jlite for some informative and interesting posts, news. Really helpful and insightful. My one small piece of feedback would be to drop the random capitalizing of certain words. It makes the posts harder to read in my experience. But different folks, different strokes and all that.
SM
contd
purity is an important factor as keeness of buyers is based on this GRADE FACTOR ie SC5 / SC 6.
13] When does the DEMAND vs SUPPLY meet equilibrum? When will SUPPLY shortages start and how long will they last?
Who are the spodumene potential producers to come? Brokers usually show a CHART.
Where does IRR sit in the CHART? IRR happens to be THE CHEAPEST together with Sigma for all lithium co*s as shown by Toro_AIM believed to be from the broker.
14] What is the govt stance on mining? N. Mather explained about this in the early days.
Important to know as countries appear in RANKING reports. SI Capital provided the answer as said including Vincent Mascolo in his interview.
15] What is the JORC resource for IRR ie size and what is the size for say Core*s Finniss that is coming to market. What is Core*s MKT CAP? Important to see what the Austalian mkts are valuing potential spodumene co*s.
16] Share price at 20.72p = £112m IRR MKT CAP - Underpinned as show by Piedmont US$102m deal [JV 50%] + IRR cash US$28m. IMPORTANT - so appears the rest is FREE for gold? What is the fair value for the gold project/s?
17] Will IRR pay a dividend? People have asked but I dont recall what Mascolo said as I wasnt paying attention on this earlier.
18] How much more lithium spodumene is there potentially ie EXPLORATION UPSIDE?
One has to look at the anomalies in the licence area.
19] What is the broker target? Can one update on the target price by changing the selling price like what Macquaire did for Pilbara?
20] What are the timelines potentially? One can only go on Core*s project via research to see how long it take to get production to market ie end 2022 once Investment Decision done.
21] The gold project in Cote d* Ivoire - is there potentially a JV for it? Has Vincent said anything in interviews given the IRR lithium Piedmont JV deal came out without any word prior to or hint? What is planned for IRR Chad? I have listened to both Mascolo & Mather on this.
22] Iron Ore - I have listened to Mather*s interview [early]. What is the vision for this current and going forward?
23] What about the other projects? I have not kept up to date.
24] So much more. What is the RISK VS REWARD? ALL NEEDS TO BE BOILED DOWN TO POTENTIAL $$$ - that is what its all about.
25] Any more good surprises like Piedmont?
26] If the co is bought for its lithium, what does M & A say? Has V. Mascolo said anything [CEO of IRR]?
27] What does DRG Global, mother co say about IRR in their Qtr Activities RNS/ANN to the Australian Stock Exchange?
So many question that should be asked as DUE DILIGENCE BEFORE PRESSING buttons.
Hope that clarifies. If one doesnt ASK and find OUT, then one is investing blind on NO DUE DILIGENCE which means one is moved by info like IRR*s lithium is not worth digging out without any fact based link/evidence etc.
Mon, 20 Sep 2021. Thank you all. That*s all from me. You all can take it up from he
Link:
https://twitter.com/ACentaurMedia/status/1439856052418326534 dated Mon, 29 Sep 2021 on CNBC International - Interview with Ken Brinsen, CEO, Pilbara Minerals of Australia on the lithium spodumene price auction whose news went round the world & the mining industry.
Just listened to it:
"A lot of more buyers.
Electronic Sales.
BMX Online Platform to sell {Like Ebay}.
BUYING POOLS.
LOTS OF BUYS.
30 businesses.
17 biz [think he meant auction buyers?]
Latest auction last 2 hrs.
In the last 5-10 mins [think he meant action akin to auction keeness?]."
A bit hard to hear.
As for Jollifant and nothing to discuss, then here are some of the questions I asked myself BEFORE pressing the button for IRR. If I buy more than burger money £50, then I have to ask questions which everyone should ask as Due Diligence per FSA advice:
1] What does IRR potentially produce? Some may not know the diff between lithium spodumene, carbonate or hydroxide. Important as capex is different & time to bring to production, hence the confusion earlier.
2] What is the DEMAND vs Supply curve showing? Important so as not to be in the 1 side more than the other. This is a bit harder to find for day-to-day accuracy as industry gives forecast over a 4-5 yr period.
3] Organisations like S & P Global charge thousands I believe to join wherein they give out data. Like all commodities, how many NEW production co*s in spodumene is coming to MKT, when? What are their tpa per yr production? What is their COST base & IRR*s cost base? What is the IRR Scoping selling price? What is the current selling price? In the past, selling is 1 to 1 negotiation with co*s, now AUCTION. How does that work out ie in terms of pricing?
4] All commodities are based on PRICING [Selling & Cost]. So, details have to be known to know HOW MUCH GIVE THERE IS.
5] What are the co*s like Pilbara saying about buyers? What is the S & P Global report saying about buyers in OCT 2021? Are buyers still in strong demand? Answer given as earlier post was from today about Oct 2021 buyers.
6] What underpins IRR mkt cap? How much is underpinned by cash & Piedmont JV deal?
7] Is the Piedmont JV deal of 50% norm or not norm. If not, how much is 50% of EBITDA?
8] Is there further UPSIDE from exploration?
9] Are there risks eg funding the DFS etc? Why? Piedmont funding US$17m.
10] Is there CAPEX RISK that it cannot be raised if mkt conditions are volatile? NO, Piedmont is financing 100% of capex for IRR at US$68m.
11] When IRR starts production, how much will the EBITDA be. WHAT IS THE SENSITIVE ANALYSIS if SELLING PRICE is US$2,500 for SC6 then? How much is EBITDA if earlier price of US$1,400 region?
12] Peer analysis - is IRR*s spodumene purity grade good or better than Core Lithium & Pilbara Minerals who just sold at auction on 14.9.21? Core & Pilbara are SC5 at 5%-5.5% vs IRR 6%.
Most importantly, PURITY is important and SI Capital said "HIGH PURITY." Purity is fac