Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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Might not be a biggy, but someone was clearly selling out in chunks today. Might explain why the share price is much lower than I think it should be. Perhaps this presents an opportunity...
True but that’s partly due to the chasm of difference between the two sectors. The gold environment is so strong that timescales can slip, actuals can fall slightly short but whatever happens cash isn’t going to become a constraint and strategy can go ahead as planned.
There is still a bit of mistrust of management here hence the poor valuation vs fundamentals but the margins and cash generation are simply too good to ignore.
You could be right, tho we don't know the budgeted capex on drilling etc across various projects so mb not. I am a little disappointed not to see more progress on Mine Life Extension, but am confident Segun knows what he is doing.
HarChris.....what a contrast to that other place we both post. Very happy with founder's management and delivery here, for me he's earned shareholder trust and deserves a little slack when timescales slip a tad.
"In March, over 8,200 ounces of gold was produced which included the start of the drawdown of the gold in circuit. We look forward to maintaining an increased level of production for the remainder of the year in parallel with continued drawdown of the gold in circuit.
"We are pleased to have made a significant payment of US$8.2 million towards our outstanding senior debt facility, leaving a balance of US$15 million. We remain on track to fully repay the facility this year.
Probably Debt free by end of Q3 if production at the rate in March (8,200 oz) is sustained and gold stays at these levels
Should be just about net debt free I would have thought.
Debt is now around $11.2M after the $8.2M paid off from today's announcement (going by the debt figure in Q3 2023 RNS). It could be lower if there was a payment from Q4 2023 (not seen any data to support this though - wait until the financials come in a months time). GLA, Dan
Financial quarterly results come a month after the less detailed operational updates. Standard practice at THX.
Why is there no quarterly Aisc?!?
Would be an issue if THX was trading at all time highs given the gold environment but they’re trading 30% down year on year!
Hardly, they've explained why and produced over 8000 in March. They've reiterated year end targets and stated AISC will remain in the stated range of 1100-1200. Nothing to complain about here.
The Jan/Feb issue was already known about. The important bit for me eas in March things were well up to speed and over 8000oz produced, which they expect to maintain for the rest of the year.
"In January and February 2024 the Segilola mine production was lower than expected as a result of lower recoveries from the processing plant which has been subject to implementation of final plant upgrades"
Becoming a frustrating hold.. delivery seemingly being kicked down the road yet again
I think we'll see confirmation of being net cash positive in the Q2 results, especially as cash generation in q2 will likely dwarf that of Q1.
Anyone else looking forward to Q1 results? I am hoping we might be net debt free by now!
The share price started going down when they announced the Lithium exploration licences.
I think there was a sense that dividends were incoming, but this was replaced with a concern they were going to spread themselves too thin, rather than concentrating on the core business and spending capex on expanding mine life and Douta.
If they convince the market that this is all under control and can even pay a bit of a dividend, the price will go up quickly.
Yes, i didn't mention that the 2022 projections by ARC that i based my inv decision on was based on $1700 gold, now testing $2400.
Of course inflation has hit AISC but that's still only c. $1200, I think..and the POG has to hold up at these higher levels. Even so, this sharte is overlooke, under traded, and undervalued.
The share price is jumping because news is leaking about forthcoming results. Let's see and hope...
It's an amazing stat - to buy and hold from IPO in June 21 and be currently 25% down is crazy. The risk now is way, way lower as the debt is paid down and the gold horizon is so positive.
Of course weak wider market sentiment explains part of it but only a very small part, the rest appears to still be lack of trust in Segun delivering / general liquidity issues. This will change over time as successful execution is proved.
In June 21 this listed at c. 20p. At the time it had not started production, had $81.5m in debt and other liabilities.
At 30.9.23 net debt was down to $19m, should be less at 23 YE, and even with some capex at Segilola and explo costs at Douta, must be well cash +ve at 24 YE, if not well before.
Agree with Harchris that with a clear MLE plan and a PFS at Douta, 25p has to come as a minimum.
Add in a competent founder who has delivered this mine to plan. Life extension plans are a little later than some would like, but should be low capex and easily delivered.
Douta has also run a little late, but that's par for the course in the mining sector, and with Segun's record at Segilola I've no doubt it will be progressed soon. With gold testing $2400 this SP should be doing 50% from here easily.
There’s many factors at play but none that quite justify the current valuation.
My take - mine life extension of say 18 months alongside POG strength and we see 25p. Beyond that the economics need to be right at Douta and beyond that the eventual realisation of the lithium ambitions.
The downside from here only comes if none of the above occur and POG weakens.
I would buy more here, but the share is so illiquid I can't really justify it. Why does no-one want it? The PE should be less than onr at this point and the CEO holds plenty of shares. Nigeria is stable compared to the rest of West Africa. What gives?
Q1/24 production results next week? Last year was 17/4.
23- 25k oz would be nice.
Gold $2400+