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I could be totally misunderstanding this (and probably am) but if SC were to buy us out, they would have to make an offer at the highest SP in the past 12 months? Whether this can be higher I dont know, but the highest was 0.2 in mid March. From that point the price slowly drops and will continue to drop if no one buys. The longer this stays where it is the closer we get to the buy out price being at the current SP. this is worsened with more people selling. In my opinion we need the heard to cause a spike. And I know of only one way of getting the heard...
From a ramper!
Why buy now,SC know they only have to wait and they will get Kodal for peanuts.
Also who do you think will get a nice position in the revitalised Company?
As for the gold and other minor distractions that is all they are distractions.
Smoke and mirrors.
ARahim - depends , is is a buyers market or a sellers market? I feel any figure involved would be calculated at the level at which the number of voting shares will pass a resolution to sell. As SC own say near 30% of the shares it would likely be near the SP average of the remaining 70% of shares. Not a pleasant scenario for long term holders who haven't averaged down.
Lets see how this plays out.
from the start and from BA speeches and behavior, he was and still banking on SC for finance. As I said before he is supplying the market with just information to comply with the rules.
The main question is, Is SC going to finance as a loan or making a bid. We know SC can't buy that mach shares before they will be forced to make a bid. All my guesses go towards the second option.
a bid to buy kodal side of lithium only for what price. what is the reasonable price given the situation??????
I agree with it being a good step in the right direction but I have to admit I am not happy. As you say SorB this feels like a FS just to get the mining license done, and the SP Angel comment confirms it for me. Had it been communicated that this was the plan then I'd be fine with it but:
-When I have personally questioned BA on the level of detail of the FS (as I was annoyed 'FS' is vague as doesn't reflect PFS or DFS) he has told me , straight up, that they believe the level they are working to is sufficient to find financing. I even compared to MLL and the follow up work they had to do and he had answers for that too alluding to further work not being required
-This FS has taken a Long. Long. Time. They got SZ in at the cost of a metric f ton of option for THIs specific job. If its now just to 'get over the line' then there really are some serious questions that need to be asked regarding wtf has actually be done the past 12 months.
I have always assumed (and still hoping) the reason for the 1st point is because SC are going to finance it, but as no further ann have been made are they if so waiting for license approval or what?
The Kodal bank account is straight up empty now and there's a payment that has to be made when the license is approved based on area applied for (will dig up and share the numbers later). Plus the lights need to stay on till then. Plus supposedly according to SP Angel more money will be needed to DFS this?
Happy after several years of investment the application is in. Unhappy about feeling very lied to.
This has become more intriguing, In my opinion the FS was just enough to get us to apply the the mining permit, I still believe BA is being crafty and waiting for MLL to do all the legwork on there DFS as mentioned in a post earlier on.
It all comes down to finance, are SC waiting to see how the bulk sample goes before making a pledge? Has BA been given the nod about finance and is now not bothering with investor events, presentations etc or is KOD flat out broke and he doesn’t have the funds to go.
Take your pick, stick or twist, I’m going to stick it out and see where it goes.
Good luck all
Are you trying to goad someone Daz? 10% contingency is standard... to hold more is to waste your money.... ok 7% NPV discount is low... but standard range is 8 to 10% so below me over with a feather.... and lithium price.... carmakers are already tying down long term battery supply contracts, battery makers will shortly start to pass that down the line or they will be operating at risk.... most commentators are saying 2020 for price recovery.... and we wont be producing now for at least 6months into 2021. The recent Argentinian mine that published their FS (more complete than Kodals) used an even higher figure.
There are gaps in today's RNS but I think you are attacking the wrong metrics.
Agreed CRK22, this RNS is another milestone achieved but questions will remain until the funding appears..
For what its worth our neighbours lodged their mining application on 27/3/19 and received approval 27/8/19....a full 5 months. At that time there was a lot of activity taking place regarding mining code changes in Mali which I understand have now been completed.. so I wouldn't expect our application to take as long as 5 months through to approval.
It is possible funding may arrive sooner then we think but that's just me speculating.
8.5 yrs LOM based on indicated and inferred at 2mtpa and IRR of 51% vs a discounted rate of 7% (generous). Remove the inferred and its 4.6yrs, 23% IRR which is the true picture of established value so I'm not surprised the SP hasn't had a supported lift. The real question as before is funding. IF SC is going to fully fund then the inferred is less problematic as its based on their confidence but this is only true once the cheque is signed.
In the meantime, true shareholder value for the PIs is supressed until either the funding secured RNS is issued or upon further drilling moving the resource from inferred to indicated. Surely?
I think we're all in for another 5 months wait IMO.
a $ 3 millions loan form SC to bridge the gap between now and production. If SC is going to finance the production $ 117 millions I can't see why he does not provide $ 3 millions for going concern. raising cash at this level by issuing shares, is not something SC would like to contemplate, as it reduces his holding significantly and ours as well. This is the next clue we are looking for. when it comes, sp will have a vertical spike .2? p. as BA is not going to investors meeting 121, I guess he has an other option ready, they are just waiting to see the market reaction to today's news. again SC is in the first seat.