Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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Agreed colonel
NM wanted £1 a share back in 2016 - and that was from a good source!
I would say he would like to achieve £3 these days
I take the view that there will be plenty of interested parties (BHP will know this) and no one wants to fire the starting pistol…… I also believe all parties are now aware that a “low ball” offer will now make them look very silly ……. BHP can’t be made to look stupid again
.....it's been the determination to NOT sell out.....
@Colonel, to be honest I don't think one needs actual sources to figure that one out. If NM was willing to sell below £1 we would have been sold already, it's been the determination to be sell out that has created all the tensions with the shareholders and the price pressure.
It's always been clear that NM has created the foundation for a very binary outcome, i.e. £1 or nothing, and so far we have nothing.
Hi RICH, You say “Surely we haven’t even had a proper value for Alpala until the PFS comes along in Q2” That’s exactly my point. If we are valued in the region of £500 to £600m based purely on MRE’s & a PEA on Alpala then what might we be valued at if we had MRE 2&3 for Pov and maybe an MRE 1 on Rio by the end of Q2 ( which might be overly optimistic)
Even some of our brokers openly attribute only about £70m of value for “Non Alpala” concessions which is why it’s important to get as much recognised value as possible from the likes of Pov & Rio before a bid lands which is why IMO the PFS timeline has been stretched and stretched to enable as much drilling as possible on these concessions before it’s publication after which it will be open season on Solg and the question will be who will blink first?
All of course conjecture on my part but to me it makes sense.
Colonel, let us all hope they do deliver the PFS on time - even before-time for a refreshing change.
It’s felt to me at least, for a few years now, that a big divergence between true SP (based on assets) and actual SP (based on the market’s view about lack of monitezing those assets) has developed.
Copper prices seem to be going up and away. Solg has stellar copper reserves.
Gold and silver prices will always have inherent value and Solg has lots of Silver & Gold.
This time next year Rodney …….. lol
CD I think that (we in the bid camp) thought things were going to kick off 12 months ago and it didn’t happen. Am I the only one who wonders whether the board mentality continues to be defensive, hunker-down, drill, raise funds and repeat etc while earning those nice big wage packets!? (ToS1963 you said as much recently). We clearly need something significant to change the boring status quo. Question is - what’ll it be ??
Aimho of course ;)
Hi FTJNY you say “and I believe this is part of Citi’s defence to delay the PFS on Alpala until a proper value can be attributed to Solgs other high priority targets such as Pov and Rio.”
Surely we haven’t even had a proper value for Alpala until the PFS comes along in Q2 (Q3 anyone?) which will already have taken years and years. So to use the same argument, how on earth will proper value be attributed to Porvenir or Rio until their PFS?
If that were the case, would we not be looking at another 5+ years?
I do hope your argument is completely wrong with due respect
Totally agree TheItalian. I said words to the same effect well over a year ago! BHP are a global conglomerate with huge institutional shareholders who would not take kindly to taking an undue risk with their investment. It’s one thing to bid several hundred million for an acquisition target but quite another to bid several BILLIONS which would require a much greater degree of de-risking such as an independently verified PFS and I believe this is part of Citi’s defence to delay the PFS on Alpala until a proper value can be attributed to Solgs other high priority targets such as Pov and Rio.
Italian, I'm inclined to think the same, with one caveat. I reckon they will have a pretty good idea already as to how they'd go about the project, although it would be an act of faith to make any assumptions about additional resources. How much is this de-risking worth to them? £500m? £1bn?
BHP will have to justify any price they eventually offer for SOLG to their board, and despite Warren Irwin suggesting that the majors run their own numbers and don't need the official PFS, a project of the Alpala size and complexity with numbers still not fully defined and a potential very large cost will require an official statement. I doubt very much that BHP can and will bid before the PFS, they will need proper derisking to justify the investment.
Today I had a re-read of the 2nd June RNS which set out the detente with CGP, as, despite the fact they appeared to vote against the board at the agm, they have gone very quiet.
As we know, the RNS made it very clear all strategic options were to be examined and yet there has been little evidence which demonstrates this is happening. However, it seems to me the final paragraph, which contained a quote from Macdonald, may provide the clue. He says words to the effect that they are content to wait until the PFS has been completed, in the full expectation that it will add considerable shareholder value. This seems to make sense to me and it would certainly help CGP. However, it achieves exactly the opposite for BHP, who are considerably more important in this equation.
So, we can understand CGP s position (although why they appeared to vote against the board is a bit of a mystery), but it's difficult to understand BHPs view on life. Why wait for us to become more expensive?
currently up 12.9% today as I type