Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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I suppose that all PIs who believe in the assets of Kdnc, especially the Sonora lithium asset, are already "all-in" at this price level. So the question is, what will entice major new buying to lift the sp out of the doldrums? Merely signing the Inflation Reduction bill won't cut it. Actual hard money put down by a third party is needed - whether the Mexican govt, Ganfeng, Musk or whoever.
Take a look here:
https://www.reddit.com/r/CadenceMinerals/comments/vpr5w7/due_diligence_lsekdnc_cadence_minerals_asset/
Should really be in the £100-200m ballpark, but @EV likes to be conservative...;-)
EV Bull...on what basis do you estimate our Sonora J.V at $60m??..can you show the "maths" please?
Iron ore has dropped off a bit recently and I estimate very conservatively 49% would give £44m /year net profit
44xPE5 = £220m = £1.28/share (plus other assets)
So what's a good price target if we get $60m+ for Sonora (and EMH get a buyout perhaps) and can then fully fund our 49% of Amapa ($24m) and the 49% share of the equity component of construction costs (~$30m) giving us 49% of a fully funded Iron Ore mine returning it to its former glory... past profits of the following:
2012: $54 million ($77m / £63.6m 100%)
2011: $120m ($171m / £141m 100%)
Take the avg of £102m P/E of 5 and boom.
That is just one of the potential outcomes here, maybe Evergreen will deliver something special.
Lol , nor was I , but with age comes patience ( well the lth s had no choice but to stay put and watch the lithium play evolve)
I see musk is referring to chess again …infinite circles !
sonora lithium total production costs $4,000/t…
mexilit (kdnc) 0.8391mt drilled out reserves…
@ $1,999.99/t = $1.678bn… and they still come in under budget… lol… even 10% of that would make a few peoples day here…
could also incentivise ford or tesla to make their move… if either want unlimited lohm for about $6,000/t…
but regardless… there’s a big incentive that i’m sure sonora can tap into… one way or another…
Give it time?!? Was that ironic? I wasn't a pensioner when I started here - I suspect I may be a centurion before I leave.
if that’s the loophole… it’s not much of a shift away from the dominance of china…
Give it time , not quite everything in the filing cabinet yet ;
"we fit the bill" - so a big rise in the sp today then? Probably not!
From Benchmark’s article it just says the minerals must be processed in any country that has a free trade agreement with the US … it doesn’t appear to specify the jurisdiction of the company owning/processing that material. Could be a clever way of switching the output to the US rather than shipping to China - cheaper to transport and a higher profit margin.
i’d guess we fit the bill…
what about our 30% of mexilit… 100% owned by kdnc (uk)… ;)
Lol are you suggesting that little old Kdnc are the key to Mexicos’ qualification, would that be Rem Mexico ?
what about mexilit… 30% owned by kdnc (uk)…
msb & bacanora… are currently 100% owned by ganfeng (china) though… would sonora lithium still be eligible under those circumstances…
Copied from my reply to @Mullins58 as it’s more relevant to this thread….
The US has woken up and delivered a very clever move here. It’s not just incentivising the up take of EVs but also the whole supply chain in a shift away from the dominance of China. The decision to set up a processing facility for rare earths in the US, in partnership with Lylas, will no doubt include beneficated ore from HAS when it’s in production. Another good reason for the decision to exchange our JVs for shares directly in HAS.
To quote from the article …
The Department of Defense is separately investing in a $120 million rare earths separation plant in alliance with Australia’s Lynas Rare Earths. Rare earths are critical for electric motors, meaning they are captured by the EV minerals sourcing rules.
The pressure is now on the EU to make a similar move and re-incentivise it’s own mineral supply chain and shift to EV’s.
From Benchmark Minerals:
https://www.benchmarkminerals.com/membership/what-does-the-us-inflation-reduction-act-mean-for-the-ev-battery-supply-chain/
The bill includes an extension of the $7,500 tax credit relief for new electric vehicles beyond the current 200,000 vehicle cap. But it stipulates they have to be built with North America or trade agreement critical minerals, including lithium, cobalt, graphite, nickel and manganese.
The bill says not less than two-fifths of the critical minerals used in electric vehicle batteries should be extracted and processed locally in the US or with a free trade agreement (FTA) partner, or recycled in North America. It includes provisions to ramp up this requirement to 80% in 2026.
“To be eligible, batteries have to contain a level of critical minerals extracted or processed in any country the US has a free trade agreement with or recycled in North America,” it says.
does mexico… sonora… fit the bill… currently…
Thanks both. The importance of this for KDNC with respect to our Sonora 30% JV's should not be underestimated. Some PR from our BoD on the back of this would be great, but I suppose any ongoing negotiations might preclude this! :-)))
What a shame the title doesn't reflect the significance for $onora if all else falls into place - from @Zoom56's earlier post:
Economy Minister Tatiana Clouthier re Tweeted a comment by the Ecomomia Mexico “ We celebrate the approval by the United States House of Representatives of the “Inflation Reduction Act”, which includes electric vehicles produced in Mexico, in the tax incentive proposed by the United States.”
#####
Just a little technicality for Mexico - A_L.O and trade agreements - but I'm sure others in his circle realise what's at stake.