Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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Obviously depends when they confirm that the funding is secured, obviously have been a few little blips recently which is to be expected with this type of project, would like to think that 25p + could be seen before EOY but obviously that all depends on progress!
Yes Quantum, how long before divi starts being paid do you think? Like you say worth holding long term here for maximum gains sp/mc wise and the divi payments also!
Well its certainly looking like the June production date will be missed so revenues will be pushed back accordingly. Whilst I guess on some level its good that the CEO posts progress on Twitter I was wondering if leaving the impression that you could hit the start button and product would shortly follow might be either wildly optimistic or could even show a lack of experience of chemical plant commissioning. The first few batches might be a slow and painful process with a lot of real world snags that have to be ironed out. There will probably be in-process lab testing (and indeed final product QC testing) that eats up time and its possible the early material may fail to meet specification. The one saving grace to all this is that we know the start material is there and its a matter of getting the plant to work. Unlike waiting for an oil drilling /precious metal mining outcome where the product does not actually exist in any useful quantity.
From the RNS in May the 1st revenues should be any day now. I'm guessing part of the SP decline has been due to 2021 revenues being reduced and also steady state costs increasing (not for the first time!). Tony S is very quiet on twitter at the moment, hopefully that's a good sign!
Lake Way project update
The Lake Way Project is on schedule for first SOP production in June 2021 and first SOP sales very shortly thereafter. Commissioning is substantially progressed with 26 of the 34 Plant Process Units now commenced and 17 of those Process Units now finalised to Practical Completion. Overall plant commissioning is more than 50% complete. The target for full scale production of 245ktpa remains the June quarter of 2022.
Revenue expectation in 2021 has been reduced, driven by expected slower harvest salt ramp up due to a delay in receipt of EPA Part IV until late April following the recent state election, a lower evaporation rate incorporated into new dynamic pond model and a larger than expected impact from harvest salt production cells being taken offline during peak salt formation from December to February to prove harvesting methodology. Train 3 pond cells have been repurposed to reflect revised pond design. The reduced revenue expectation for 2021 was a key consideration in determining the additional funding required.
In addition, the project capital budget for the initial scope of works has increased by A$5m to at A$269m as a result of advancing sustaining capital work involving the construction of 271Ha of pre-concentration ponds (A$2.5m) and associated trench and bore capacity (A$2.5m) to feed the additional pond acreage. The additional pre-concentration ponds will help to de-risk salt production, with the lending syndicate's Independent Technical Review Report noting "It is clear [that] together with conservative process design criteria, the revised pond system on average will be able to produce in excess of nameplate production, with worst case conditions meeting nameplate".
As part of the project final cost to complete review operating cost assumptions have also been updated, with steady state costs increasing from A$337/t (adj. for higher AUD FX and shipping from Fremantle) to A$390/t. The primary drivers for the increases in expected operating costs are higher onsite logistics (+A$30/t), laboratory (+A$8/t) and increased diesel and labour costs (+A$14/t).
In the next month or so. First for local consumption and then globally. Looking good now ??!
It all depends on Tony’s definition of final wrinkles. I would hope for within a couple of weeks, often the final stages are the most important in terms of optimising the purity and composition (particle size etc) of the finished product. I could be wrong but logic tells me that the first market notification will picked up on asx first, due to geography and time zone and an early morning rns for us. But could be completely wrong!
At Lake Way right now & not leaving until production coming out back end ?? shoulders to the wheel, all hands to the pumps, final wrinkles being ironed out over coming days. Premium SOP imminent! ?? Been hell of a ride ??
Above is Tony's tweet on his personal twitter page (from the 8th). So is this days or weeks? Either way it is close. Getting some potash produced and shipped is a massive milestone for the company. A 1st revenues RNS is long overdue!
QuantumStar . I've found that the problem with AIM investing is that there is sometimes a curved ball thrown into the mix that you just did not see coming and it is often detrimental to the share price, sometimes in a big way. I personally would not like to hazard even a wild guess at EOY SP. I am invested (after time out after the previous placing) so obviously I am hopeful that product equals profit equals greatly improved balance sheet equals stable and solvent company moving forward on further sales and happy shareholders. Or we could get buried under a pile of debt and lose everything.
Sorry that is no answer to your question but I feel it would be unwise and unfair on AIM to put a guess on the board, this was simply a courtesy post so your question did not disappear into a black hole. Its nice to see a bit of blue I have to say. GL!
It will be nothing to panic about if there are the odd few hiccoughs in end stage plant commissioning, almost goes with the territory really as long as there is not a major delay. Personally I hope initial revenue is used to pay down debt as opposed to setting up further lakes. Two reasons. One the terms of the current load agreements are pretty punitive, 9 percent interest in part I believe. Starting to clear this from the balance sheet might enable us to get new loans at a far more competitive rate once revenue is flowing. Secondly the company will need someone to buy anything produced from further lakes so further off take agreements would be useful prior to further investment
Agreed. Need to achieve a steady ramp up in production levels over the next 6 months. Then start planning for next lake to show the market the scalability of available assets. This should lead to the potential of this company being realised in the the share price.
first potash should be ready any day now as June quarter has been repeatedly mentioned.
Hopefully Tony can get some positivity back by announcing our first revenues
Time to be greedy imo......