Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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CGP wasn't far off a 2 year low last night at $3.60CDN...down more than 30% in the last 6 months...
There is no volume in the shares...the 50 day average is 7,708 shares a day, i.e. c$40,000CDN per day against a MCap of $135m CDN...(and we think we have low volumes!)
Its EBITDA was MINUS $6.8 million and the 5 year average is MINUS $7.4 million, primarily because its Operations Revenue last year was $190,000...
So it seems that it is only their stake in SOLG/Cascabel that is keeping them alive...
They have $7.6m in cash with Operations negative cashflow last year of $6.64M and almost solely remain solvent because of cash raised from the exercise of options last year ($5.678m).
While their investment in Solgold has gone up by $5m since May 31 (and indeed by $14m since May 10), their MCap has fallen by $15m (10%) and indeed by $51.7m (almost 30%) in just 2 months since April 11...
Now OK...the US/Canadian markets have fallen during the same period, but SOLG is still pretty much at the same price, so...
My conclusion is that SOLG is the only prop for the CGP share price at the moment and they need to raise more cash soon (they have eschewed selling SOLG shares - the easy option - to raise cash, for more than 2 years)
So they would appear to be 'between a rock and a hard place' and...if they appear relaxed, they either know something we don't know or they're staring down the barrel of a gun, potentially making them a forced seller to a prospective bidder...
AIMO as usual...
Novice….. please mate give it a rest ….. there’s so much more to discuss here
Lolzzz both = harmless buffoons
Oops
Looks like Buddy forgot to switch usernames when responding to Stukey. What a clown.
lol, Lol, LOL
Bozi...
"ask yourself why they'd put in long term remuneration policies if they planned to sell the company in a matter of weeks?"
Im sure there are no plans to sell the company, but Darryl and Ayten have come on board while Cascabel takeover predictions are widespread, with the 'most informed' comment saying My/June...
If I was coming into the company I would need a robust remuneration ;package to persuade me to take the risk that I might be out of a job next month...
that now makes me two posters blended into one
yes stukey. I fully expect to make a profit on my 30p a share investment.
DBW thanks ,wasn't sure whether their options had expired
Have you ever posted anything constructive? or is your remit to rubbish everyone else?
It was always my understanding that CGP's share of the exploration costs up to DFS were a free carry re-payable from future production.
But their share of costs for building the mine had to be paid up front (post DFS) or they were diluted.
DFS bubble due 2023
DBW has that not been completed and cornerstone now have to stump up money or solgold have option to buy there stake in cascabel?
I took that to mean on their own land packages Addicknt but I take your point.
You raise an interesting point on Porvenir DBW. A 500mt resource starting from surface with several targets still to be tested.
There's no reason this can't become a fantastic asset in its own right but using this as a starter to generate profits to reinvest in Cascabel would be serious can kicking for Alpala.
It's probably time for me to admit that I'm well aware we need a bit of help. I just try and offer a bit of a different viewpoint from the takeover now narrative.
Addicknt the argument you seek has been mentioned many times but you ignore it.
BHP have stated on more than one occasion that they will not overpay for any asset. They have tried to gain the lions share and failed. Our methods of defense have been successful. We will not get a bid from BHP or anyone else unless the book changes. It is just not in their planned expenditure.
Hi lunch
Sorry missed your post
Cornerstone certainly have to start contributing once feasibility study is complete and way before production revenue, trying to find something a little more detailed than this
“ Future ownership levels by Cornerstone may be reduced depending on whether Cornerstone contributes to certain expenditures following completion of a Feasibility Study by SolGold”
Tell you what, Buddy, why don't you continue howling at the moon and being rude to people whilst we discuss what we choose to discuss? If you don't like it I suggest you disappear - you will not be missed.
We were told that Porvenir is the “next cab off the rank” and could even be brought to production ahead of Cascabel….. I suppose we’ll be doing that one ourselves as well ?
Bozi, if you look at any of their presentations for at least the last 18 months you'll see they specifically refer to the money they are spending on exploration in Ecuador. And as the political landscape has become more miner friendly we can anticipate their interest will only increase...particularly given the potential problems in Chile and Peru.
Addicknt - on 2) - have they? What have they stated?
If you read their recent report you'll see they take great pride in distributing capital back to investors and plan to continue doing this where they see no suitable opportunities in the market.
So much for their Ecuadorian intentions.
On 3) I can't answer that as I don't control the BHP pursestrings or investment portfolio. You'd have to ask them that. But the same applies, they haven't made any offers for SOLG, Filo or other assets like Warintza(Solaris).
3 big copper gold assets in the last unexplored frontier with an impending copper supply deficit. Explain that one away...
"4. Maybe their happy to watch the SolGold's, Filo Mining's etc try to pave their own way and pick up the assets at a firesale should the company run out of social capital, actual capital and goodwill."
This is the quagmire I warn against, and where it may lead.
If these are just noises to put on a show for the bigs boys, and they lead to a better payout for us, then the BoD are playing a blinder. If it's genuine mission creep we will soon be digging a literal money pit for ourselves. This summer is the natural point for the journey to end.
Bozi …. If I’m wrong , I’m wrong ….. won’t be the first time .
But I doubt it very much , all we need now for the perfect storm is interest from a third party
DBW - there are numerous flaws with your argument.
On CGP - have you any proof they are content just because they aren't publicly vocal? Appearances can be misleading.
On DGR, another company in the stable - Atlantic Lithium - is also rumoured to be subject to offers with the company confirming in April that unsolicited approaches had been received. So, don't necessarily assume any DGR behaviour is SolGold motivated.
The EGM is being used because they fear carnage at the AGM which will render the resolutions hopeless, in my opinion. I can't think of any other reason, but ask yourself why they'd put in long term remuneration policies if they planned to sell the company in a matter of weeks?
As for the article, it's pretty flimsy. It got the PFS right(calculated guess) but only two trading weeks left in June to find out about the rest. We'll see how smart the smart money is.
Bozi.
1. That is a possibility.
2. This doesn't sit with their stated strategy and current investments. They've openly stated their intentions in Ecuador.
3. Then why have they invested? (see point 2)
4. Again, this is a possibility but comes with significant risk i.e the assets never become distressed and more value is created along the way. This has been the strategy we've been pursuing and it makes good sense.
I'm afraid the balance of your arguments doesn't lead to the conclusion the production case has any real strength.
Addinct…. The main flaw in the production argument is that there’s not a cat’s chance of it happening……
CGP and it’s BOD seem very content just sitting and waiting…… I doubt they would be if they thought there was the remotest chance of them having to stump up $400m
DGR options triggered well under the current SP , I wonder why?
EGM called ( for the first time in 12 years ) just to sort out remuneration….. again why not wait until the AGM in December…… hmmm
One of the biggest and most respected mining journals telling us where the “smart money” is
The list goes on , personally I hope the deal is just for Cascabel and we can continue to do what we do best with the other licenses…… when and how it happens remains to be seen