Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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ABLE. I am not misinformed. You just do not know the difference between short-selling and a financier disposing of his shares. That is his business. Financiers are not investors! JLP never had spare cash to splash out on expansion other than the cash from capital raisings. Look at todays RNS - these results are as a direct consequence of the share placings with further improvement to follow when Kabwe come on stream. I maintain my view that you are unable to see the big picture but are more concerned about how it momentarily affected your own shareholding.
Enough said, let us agree to differ.
Isphahan you have somehow been misinformed, the time that Jlp issued shares to their lender for financial consideration the lender began selling the shares into the market dragging the share price down to something like 1.4p. Therefore I was placed in a position of taking on more stock to keep the price right as I had to do a couple of times since. While the shares were not shorted in the genuine sense it was the lenders intention to sell the shares and, at that time attracted much criticism from the majority of shareholders and, if that is not the equivalent of shorting I do not know what is. As regards the hand that feeds me it is the likes of your good self that do that. As regards being forward thinking I do not think you will find many investors more forward thinking than me as I am mainly in the right places at the right time and, ready at a moments notice to change positions. I have no intention of mentioning the companies as I am likely to be accused of ramping. Finally, you are incorrect in stating the company has never had cash in the bank, I suggest that you look at the company's financial dealings for the last 12 months. Able.
Able, JLP has never had money in the bank, so it can not be said there was no need for a fund raising. The best way for a company to take care of its shareholders is to improve the EPS and for as long as that is achieved the number of shares in issue is irrelevant. Money lenders (those who received shares in lieu of cash) do not short these shares. What is the point? The concept of short selling involves borrowing stock you do not own, selling the borrowed stock and then buying and returning the stock when the price drops. When a company goes through difficult times it is the money lenders who take the risk s. These lenders have many options and they do not provide the funds as an investment in the company. Contrary to shareholders who have made the mistake of already owning these "dodgy" shares. Without these lenders we would be lost. Do not bite the hand that has fed you. Able, you make the common mistake of not seeing the bigger picture and instead staring blindly at "issued shares". Be forward looking.
It is all very well defending share placings but the real issue is whether the placing is genuinely needed in the first place. I can not remember the exact details but just take for instance when jubilee borrowed the money before the growth story began and the lender immediately began shorting the shares. The next step in this growth story will be to claim that there are too many shares in issue and a share consolidation will be needed in order to make the shares more attractive to the institutional shareholders. It is in every ones interest to remember who supported the company through the most difficult times and who should be benefiting now? It is a subject that companies would do well to take on board.
The longevity is indeed an important factor. I can tell you there is no shortage of tailings - neither in SA nor in Zambia. I doubt very much that our technology will be licensed out. JLP has always played these cards close to the chest. However, as we all know, "everything is negotiable". But coming back to the perpetual concern about further share placings ; who is going to complain when we increase the no. of issued shares by e.g. 20% resulting in a growth in eps of say 30%. Isn't that sound business practice? How many times has Amazon placed shares at times when they could barely survive? It is not about issuing shares, it is about what you do with the money !
I just tweeted back
I was typing exactly the same point, Kalan, when you beat me to it. The projects do not compile. In future deals, I will be looking closely into their longevity whilst adjusting my position in this company. Licensing our fine chrome intellectual property might be a way forward, but at current chrome prices it must be only marginally profitable, if at all. Extending it to fine copper however looks a lot more interesting. It may not be irrelevant that the current price of copper features in Jubilee's most recent tweet:-
"Palladium has climbed 20% so far in 2020 with Copper hitting a healthy $6300/t
The broad basket of metals we extract provides considerable resilience for earnings in the face of varying conditions "
When valuing we need to consider the longevity of the projects - Kabwe is way into the future but DCM and Hernic and part of Windsor production are time limited which means the income will be here for less years.
JLP will certainly be worth more when Kabwe is up and running and paid for - about 6 months away for production to begin ramping up IMO - getting closer.
Always interestingb to get a disruptor view - adds to the opinions. The point you raise about P/E is interesting as it leads to how this company plans its next stage of expansion. Do we stay in miner mode and control all our projects - p/e 8ish or do we intend to licence the technology resulting in a much higher roce, and a move to services and a p/e more in the region of 15-20?
Personall I think this is a jam later element as we need to get the valuer of the projects but depending on the ability to protect the Intellectual property, the latter licencing mode is more attractive as an investor and reduces the likelihood of majors catching up in their own research activity.
OK, all higher share price predictions can of course be labelled as a ramp. I have to concede that. The 50p prediction obviously assumes that as a minimum all our activities roll out as planned especially the Kabwe activities. No doubt there will be further profit enhancing developments in the interim. Take as an example DRD gold, which is a company treating gold mine tailings. In the Sept. 2019 report its P/E is 40. DRD is a strictly a gold play.
Part of my 50 p prediction also assumes that Tjate takes on some value in the future share price which is presently nil.
The opinion is ambitious but not unrealistic. If present PGM price trends continue with an improvement in the chrome price it can happen. Punters often aim for a 10 bagger - I think we have one.