The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
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It’s entirely possible they do a deal ahead of dfs. ALL was fully funded to production with a dfs as one of the stages, PREM took a 12m investment to fund a dfs. Companies are getting into lithium deals earlier and earlier due to scarcity.
With each passing 6 months we're missing out on $250m in sales and possibly rising. And potential dividends. Waiting and waiting for a lump sum doesn't make sense in that light.
The 3m is to expedite the DFS at pace. I hope it comes soon with financing right after, with no delays on further exploration of the resource.
Let's develop what there is now and turn that into revenue.
"Still currently cheap as chips, is a buyout a risk?" .. an offer maybe. But it would have to be accepted by shareholders. And if one did materialise, there would most likely a bidding war if it was a lowball one. There's a global scramble for lithium assets at late stage or early production. 3448 bids from 21 participants for the recent auction on this lithium mine lol.
https://www.mining.com/web/mine-auction-draws-3448-bids-amid-scramble-for-lithium/
Firefinch shares nearly tripled in the six months after their JV announcement. And they'll be in production getting real sales and revenue from increased price spod quicker than us. Only thing they didn't get is a lump sum, fair play if KOD get it, but real revenue from sales is what Firefinch went for.
smkr - can you imagine if an investor wanted to take it private? What would the price be? 40% premium on today's prices? Even double would be rubbish. I'd be gutted. I suspect Bernie would be too, as he's mostly paid in shares. Still currently cheap as chips, is a buyout a risk?
Re Daz - putting the work in. Hope so. We are used to seeing Bernie doing an interview with jet lag after a long haul flight and looking about as healthy as Joe Biden.
Last interview was completed without jet lag and he looked 20 years younger.
Maybe he is delegating well at the moment.
Ivenoidea, we are getting close now, anytime in the following 6 weeks, I reckon.
It has been a long haul, but every delay, COVID, busy labs, coup, have all improved our position.
If it had all gone through with no delays we would be in firefinch shareholders position - not where we would want to be.
Guido, according to Bernie supply and demand gap is widening, not closing.
They are going to be majorly depressed when they see our deal.
Daz - yes the extra ground has not been spoken about much, higher recovery levels and more new ground could be included in this study.
I am sure Bernie said they had been working on some of the ground since the first study release, but I cannot remember where I saw it, anyone else remember?
Silly money flying into EV related resources. Globally.
https://www.kedglobal.com/batteries/newsView/ked202205110024
https://auto.economictimes.indiatimes.com/news/auto-components/chiles-sqm-to-invest-900-million-as-lithium-capacity-expands/91117344
There ain’t many listed that are sat right at an investment stage like KOD. Just saying..
Another Mali buyout
https://www.mining-technology.com/news/canadas-b2gold-acquire-oklo-resources/
The upside is that they got their financing in place last year and will be ready to take advantage of the high spod price when they bring the product to market. Whereas we have rejected offers and are holding out it seems. 6 months wait and then a raise also hasn't gone down well
Lav
I think KOD need to start infill drilling and expanding resources size. BA did say that would start Q1.
Theres 7 other identified areas with same geological traits as the 3 drilled in the license area.
This is key if we start lifting that MT it makes it look even more juicy to majors.
All eyes on KOD but hes been radio silence for too long hes obviously putting the work in. Or we hope lol
You are getting me all excited Laverda.
Can't be long now, it really can't be.
Interesting information regarding FFX, very interesting and probably goes some way to explain the re-emergence of old foes on ADVFN. This again is an indicator to me that the next update must be close.
Good Luck all.
Guido-continued - we may get a payment if supplies are a massive issue, I am not ruling it out.
I expect a superb loan facility, maybe interest free, for first option take off, maybe a penalty if they do not take it and we keep 100%.
We will see.
Guido, re Firefinch, you are correct which is why they had a mutiny on their hands.
The shareholders did not realise that the prices were set at the time the agreement was signed, when lithium was at a low price, because when the JV went through it was much later when lithium prices were higher and rising. They thought it should be based on the price at that point.
They were looking at the possibility of taking them to court and all sorts - but it would not have stood up.
We are fortunate all of our agreements timed out with covid and the coup.
We as yet have no agreement signed. So any agreement we have will be based on this year's prices.
Big difference.
No I'm with you there. But I think the offers so far have been just financing only, no lump sum additional. So that's why we have the 3m raise to try for other offers. And then we'll go with Sinohydro anyhow
It was investor meetings for people who already hold stock aswell. Not just a financing pitch probably etiquette to attend or provide a stand.
Hes told us hes refused offers already. If hes lying that is a major breach of FCA regs.
And that might explain why KOD were at the mining conference recently. Why go there if financing looks to be in the bag already
That's not what happened with Firefinch, $130m last year in exchange for 50% of the project, enough to cover the development of the project only. I don't believe they'll be giving KOD half bn to buy in on top of the financing.
If we went down a JV, they will be paying a large payment to buy in
It is not 50% given away. 50% JV means also they pay half the costs too.
It won't happen at 0.03. The infastructure requires developingat a cost of $120 million approximtely.
If a JV half of the 1bn would be gone in exchange for financing (1bn based on Bougouni alone)
4755 - 500 cost of mine let's say X 240,000 tonnage (increase of 9% recovery - which I think is disappointing given Firefinch increased theirs by 50% approx)
= 1bn approx
Then halved with JV
500m divided by the outstanding shares 16.9bn gives approx 0.03 share price
If spod keeps going up and up then great
It is stressful wait, especially when Bernie said they need to prove more material and that it is up in value by 100s of percent (from the original study).
Money is not an issue as they want the material from us.
Then the supply gap for Lithium is significant and growing.
Music to our ears.
As long as our hearts hold out until the delivery of the final figures.
A pleasant, but high stress position to be in.
We could be looking at a company worth in the region of 1bn dollars all in.
Im officially outlawing the usual “friday phrase”. Tomorrows board should be filled with “its never going to come” in a vein attempt to induce the opposite.