Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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"Private companies shares are tradeable (in most circumstances) on an exchange."
Aren't tradeable.
"The project could incrementally de risk over 10 years whilst private"
Then there's a good chance if you are in minority shareholder in a private company there's going to be limited chances to realise your investment. Private companies shares are tradeable (in most circumstances) on an exchange.
So you are limited most often by the Articles of Association how you dispose your holdings.
Hence, it's a bit like being in limbo. Your potential gains aren't easily realizable.
"So we are set on the possibiliy this might be in limbo for 10 years then if it's simply de-listed."
Urm... did I say that? The project could incrementally de risk over 10 years whilst private and then gains could be realised.
I actually invested here 3 years ago, with the idea that I may not see material gains for at least 5 to 10 years. I put in a very small part of my portfolio that I reserve for capital growth/ venture capital projects and just let it run.
Sometimes these things work way before 10 years, sometimes, longer. But the point is, I didnt invest for a get rich quick gambling scheme ( I would have gone to a casino for that).
The only worry here today is that PIs are about to be screwed by a clever accounting scandal.
As I said, fake or distorted new regarding the daily mail reporting. What is certain is things have been stirred up for the coming week ahead.
Cherokee101,
£1/share in 10years time
Yes all potential and all on paper
Mr Market seems to agree otherwise at the moment
3.5p and £250M Mcap with £117M cash and £196M(?) convertible debt
Hi EngineerHere....
I totally agree with your post....the whole thing is puzzling for me also....and the Daily Mail report is absolutely disgraceful....that is an awful headline....many people from all backgrounds are in this...is it an old interview? I dont know.....but for me Daily Mail should be ashamed of this...and the journalist Francesca Washtell....should attend a PI meeting and face the music...absolutely dissatisfaction on the Daily mail...
All Daily mail readers change your papers ....I have actually convinced my mother to stop buying from yesterday...
Regards L
Totally agree with your thoughts, even with 14b shares the net profit on 14m tonnes of poly4 at $62 per tonne (net profit @$140 fob Teesside) should support a dividend over 5p and a reasonable share price of c£1
All of these numbers are from recent CPR reports.
The thing that is puzzling me regarding the DM article is:- Is this based on an interview that CF gave this week, in which case there is some meaning and some plan. Or is it a highly distorted edit of an interview from 3/4 weeks ago? If so it is an effective but unhelpful piece of journalism.
Any thoughts
IMHO etc....
"so 10 years is nothing."
So we are set on the possibiliy this might be in limbo for 10 years then if it's simply de-listed.
If you properly diversify you shouldn't ever sell your investments (unless the thesis becomes broken).
My horizon is multi decade. I could live until my 80's... so 10 years is nothing.
"around 10 years time"
Then most people would be better off buying in 9 years time. If the mine ever gets built. Until then it's a pipe dream in every sense of the word.
10 years in a private business where you might be locked in...and not able to realise your investment.
That's OK for some, but not many can tie theor capital up for that long.
Yellow
The fear is that they do some clever accounting and take our shares through administration.
Sirius is a subsidiary of York Potash... Sirius could go under and York take the assets.
"Mind sharing your calculation for that, why you belive the value is greater than the price the market puts on it?" - devon
The TorPs , proven resource and NPV.
Those 3 factors alone warrant a share price of c£1 at full production in around 10 years time.
The market is incredibly short term and rarely looks past next quarter earnings (and god forbid an analyst calculates DCF beyond 3 years).
"De- listing does not mean that your shares are worth 3.3 pence each - it means that you will own a share of the actual value of the project as a whole, which is a great deal more than its current Market Cap."
Mind sharing your calculation for that, why you belive the value is greater than the price the market puts on it?
Yellow,
I totally agree,and for me it is worth waiting that little bit longer,
without all the stress of sp fluctuation and manipulation
De- listing does not mean that your shares are worth 3.3 pence each - it means that you will own a share of the actual value of the project as a whole, which is a great deal more than its current Market Cap.
Delisting does not mean that the company cannot re-list when the mine is built.
With a market cap of 246 million CF is right that the value of the project as a whole has been distorted by the markets out of all recognition in comparison to its true value. To delist now and resist further down the line could well be the best move forward.
The company could then be seen in light of its true value in seeking the funding needed of a strategic partner.