Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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1. Cornerstone would not likely take up any rights issue/equity raise (they would be forced to sell the rights)
2. DGR would not likely take up any rights issue/equity raise (they would be forced to sell the rights)
3. Telstar would not likely take up any rights issue/equity raise (they would be forced to sell the rights)
4. Mather would not likely take up any rights issue/equity raise (they would be forced to sell the rights)
These guys collectively hold near 25%.
Hence if they were not up for a rights issue or placing, then there's a 25% short fall. Furthermore, you can add a bucket load of pi's and HNWI's which also would not be up for it. Lets say about 15% to 20%.
In a nut shell it's nigh impossible to get away a large fund raise based on open offer or rights issue basis if nearly 45% would not take the rights or placing up. You'd have an overhang that would last for a year+.
Getting away $50m would not be a problem.
At end of the day... it's about getting the funds secured and trying to avoid a broker unwitting which sees bucket loads going into unknown hands. You want to issue equity 'strategically' where possible. So that's why I was hinting that you need a new player to come in like Fortescue or Wyloo or Gina etc as that would avoid BHP and NCm gaining an almost near controlling stake (if the raise was £100m+ or more).
Redknight, I don't think the BoD's vetoed the RI plans (if there were any) I think 25% of shareholders just said NO.
BHP and NCM can cry all they like but if a partner deal is announced (bit like Wyloo and GGP) then it will need a vote at the AGM. And if it gets voted through then BHP and NCM have no reason to complain. Of course... BHP can always offer a buyout. lol!
That's democracy and it's better than being bullied around by the likes of BHP and co.
Quady, a discussion with shareholders on fundraising that we decided not to proceed with wouldn't:
1) Have had us instruct Barrenjoey to start work
2) Result in the abrupt resignation of our CEO
3) Result in respected financial publications in AUS writing negative articles about all not being well with the business
4) Result in one of our investors releasing an RNS criticising the BoD
You're more than welcome to live in your blissful ignorance, claiming outlandish things like "the share price doesn't matter" (it certainly does when a lower share price means greater dilution), but when you start taking that nasty, snide tone as you did below with Dbw, I think it's only fair that you're called out for it.
You will undoubtedly ignore the 4 points above, as it flies in the face of your blinkered, delusional view that everything is fine and this is a perfectly normal state of affairs.
SharketMare really .
We now know the so called fund raise was a discussion and Solgold decided not to proceed.
Look at major companies all over the world many with healthy balance sheets. Why have they fallen massively.
As for the resignations as addicknt said one was very quickly replaced. Make of that what you will.
The board of directors are there to manage the company's affairs and deliver value for all shareholders. Over the last 3 months, they have presided over a 50% drop in valuation of the company, along with a very public, embarrassing attempt to raise funds, which resulted in several negative articles in respected Australian nationals, open criticism by an investor, and the resignation of the two most senior people responsible for managing the company's finances (one after a mere 6 weeks).
I don't recall the board setting that out as part of the plan at the start of the year.
Tesla, why has NM's hand been weakened he controls more shares than either BHP or NCM ?
You have 2 major shareholders who potentially want the asset for as cheap as they can get it.
They have a lot of power in this, but you all think Mather will win out…..hmmmm maybe he will maybe he won’t but he]is hand has been considerably weakened in the last 6 months.
The sp can easily fall from here and is more likely to fall than recover until some type of funding is secured.
DBW why would they all be gone?
They are doing what they said.
Try listening.
Sean it feels like a very long play just now.
However plenty will have to happen before the AGM agenda is released and voting begins 2/3 weeks prior to AGM ….. mid November latest. If nothing changes they could all be gone
Cheers Quady. This share is indeed a long play, we can agree on that mate :)
Good afternoon Seanhunter that was the whole point when NCM and later BHP invested.
NM made sure they could not take over the company cheaply.
It's worked but most on here don't understand why.
We have a diverse book which means everyone invested wants the best financial outcome. If one party held 50% of the book, then it's game over.
This share was always a long play.
I have no idea where the share price will bottom out, it may have already.
I do believe it will rise again once our next fund raise has been achieved and we carry on towards DFS.
To be fair this was always going to happen, but I admit to being surprised to how far we have fallen.
If you're looking for your payday, may I suggest end of 2025.
I would put your energies into building a dividend portfolio if that's your thing as some excellent bargains in the FTSE 100 and 250 at the moment.
Not long Sean
Talk about a rock and a hard place.
How low do you think we can go before something gives, one way or another?
Look at it this way Quady, the way you put it, the diverse book is spoiling our chance or receiving a bid.
But we cant seem to raise cash at the moment.
We don't seem to have any plans, at least none that don't need cash.
We are drifting, becalmed, rudderless - unable to be rescued by a bid and slowly burning up the last of our cash paying salaries to people who don' t seem to have any clearer idea about what to do than I do.
Talk about
ColonelDrake doesn't understand why block caving is being proposed for Alpala.
Block caving is not difficult, it's the rock fissures that makes it difficult. So block caving is not proposed for all mining projects.
However when it is because the environment and economics make sense. It is cheaper than open pit. Switching to open pit in the last years of a mines life if economically viable.
Lots of people on here pretending block cave is risky. It's not.
$500m+ per year is still sizeable outlay with no incoming cashflow until year 5 I think?? That said, we know that Tandy could be producing a lot earlier and contribute to cash flows in year 3 to 5 which might save $200m here or there. As we've seen with RIO and Turquoise Hill, these kind of projects are often better shared with 'investors' than 100% shouldered by the super major. Ecuador is a company maker for a business like NCM or a company wrecker. It's all about the size of the business as a whole and ability to withstand hiccups. The block cave workings are not straightforward and Mother Nature can be a pain in the backside. Ultimately, a project like this suits BHP more than NCM and as we have seen of late, NCM more than happy to take the off take deals in Ecuador (Fruta Del Norte) so they are quite happy with the regional risk levels but on a finance basis.
I get the feeling NCM might be more interested or aligned to Porvenir than Alpala. The Lundin, Solaris, Codelco type mix might be the way to go forward in the South and spreads the risk. A consortium like that sharing infrastructure etc might be the answer but that would not likely suit BHP's business plans... unless BHP are happy with just the North? Doubt it... the entire SOLG folio is the derisking element imho as plenty more ops there should Alpala prove tricky or problematic.
the statement about the size of Cascabel implies a potential very positive outcome. wanted to confirm this is ur thought. tnx
You're much more succinct than me DBW.
Agreed...again...why can't we fall out like the others...say something outrageous...!
Off to play golf...
Sorry medi...don't quite iunderstand...?
Colonel...BHP is spending money on existing and new mines every year.
If Cascabel fits teir portolio, its only $540 million a year to generate cashflows that peak at $1.6 billion from only 21% of the asset...
Just to add great time to build a dividend portfolio.
I have been buying DLG at 2 pounds.
1.85 pounds this morning.
That's a yield if over 12%
This is not a recommendation.
In fact don't buy them, as I will have some money next Wednesday to buy some more.
Good luck everyone.
I really don't get this about Darryl and the BOD.
Why not wait till the end of the year before commenting.
We have had all the communication required.
We know what is happening up till the end of the year.
We also know a fund raise is on the horizon.
So don't pretend that the BOD hasn't done their job because they have.
The share price is unimportant because we are recovering from worldwide Covid, massive worldwide debt leading to money supply problems and hence inflation and thus rising interest rates.
So surprise surprise, people are exiting stocks and shares.
Prices are falling. Something I didn't think I would see is I have lost a third of my portfolio on paper in the last year. That trust me is a lot of money even for the great Redknight.
However am I worried ?
Well of course I am, but as a seasoned investor I am aware things happen.
So am I selling. No I am not, I am buying more Vodafone, more DLG and am not increasing my holdings in BP, Lloyd's or Solgold.
I did however increase my small holding in VRS a bit.
Still a small holding, but now five times more than I had a week ago
We just shouldn't be concentrating on Solgold. In my opinion bargains to be had in lots of places.
RK, Genuine question. Do you believe in an outcome as per your latest statement on Casabel?tnx
Morning Red
Not trying to oversimplify things but I believe the reason BHP haven’t moved with a low ball offer is because they know it wouldn’t work and would inevitably spark a bidding war …. Thus weakening their position. With years of experience/ contacts in the sector and 25% (at least ) of voting rights to call upon Nick will have an “alternative “ up his sleeve.
Hence the stalemate….. no one wants to make the first move.
Biggest copper/ gold / silver find in the last decade there will be no shortage of interested parties
Thanks FRog.
Can I repeat...there could only be a 'low ball sale' if only one suitor is interested...
SOLG/Cascabel is the best and most buyable mining prospect on the planet...
And, again about the Swiss entity, they have just changed the auditor to PWC, who knows if that's because there is indeed some big financing package to rate and they wanted one of the big companies for that.