Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Caveat
Yes you are right, sorry I meant Sino.
I also mean why the 3 deals?
Sorry, I think I am still missing the point. SINO is the best thing that has happened to XTR in the last 5 years!
Perhaps you mean MOZ?
Chaps, you seem to miss my point.
Why did CB done 3 deals with KPG (Galileo, bezant, Xtract) between February 2019 and July 2019?
Look at their RNS and that lovely sum of 200K in each Rns.
Have you forget sino?
It is to good to be true.
I wouldn't worry about KPZ if I were you. They get to pay off their debt in less than 2 years then make about $9M a year clear profit and will own a sizeable chunk(2%-3% would be my estimate) of XTR, to boot. That alone could turn their $200k into something like $1.5M over the next 12-18 months, if all goes according to plan... and all they have to do is sit back and let it happen!
Andrew
I am not worry about XTR.
I am refering to KPZ to have accepted that deal.
I am worry about KPZ.
And of course, the higher the SP is when the shares are issued to KPZ, the fewer they will get and any small dilution (3%-4% at today's SP) will be even less...
Asqn
When you say what co would have accepted that deal, It seems like you were referring to Xtract. I would think any co in the world would accept the deal offered to Xtract!
Using CE's figures below. The $27M revenue per year will equate to, at least, $13.5m profit after tax. Maybe more if costs are not high for the reasons CE has stated. Xtract get a third of profit = $4.5M Take off corp tax so that's about $3.5M clear profit after tax. Over 4 years = $14M in the bank.
So we give KPZ $200K of shares and we get $14M back in the bank. Easy as that.
Either that's an astonishingly good deal or my understanding of this deal is wrong. Hmm I wonder which one it is!
If Its as good as it seems then I look forward in the sp re-rating as soon as this deal has been approved!
Andrew
I know we are not giving away cash to KPZ like we did to Sino.
What bug me is more issue of share again.
Who are KPZ?
Don't they have assets we could have use as a leverage should we have handed them 200k, do we have 200k in the banks, what company would have accepted that deal?
More questions than answers even if the future look brighter than 2 years ago, Q2 result coming soon too.
Asqn
When we were in financial trouble we did placings to raise cash. Xtract will not be giving any cash to KPZ just shares (I believe) and those shares can't be sold for some time and then, only a small % at first.
In short, no injection of cash from Xtract.
Colin Bird to bulks up project portfolio in country.
This relate to galileo...
April 2019
Any one has other info on KPZ?
Maybe KPZ is in financial trouble as we were few years back. Deal done to get the head out of water?
CB seem to know/have a link with KPZ(XTR deal+BZT deal in April 2019). Maybe more deals done by CB with his too many company involvment, who knows?
KPZ will get around 16.66 millions xtr shares. At 5pence it is over 850k. At 10p, 15p, 20p,.....?
Emergency situation require emergency actions for KPZ
maybe Colin did one if his special presentations to KPZ management team, told them in no uncertain terms about his excellence in the 'ard rock space and that they'd all be millionaires this time next year. And they believed him !!
The entertainment I derive from holding this share almost makes up for the loses I've incurred so far. There is only one Colin Bird ! Looking forward to meeting you all at the 5p party in the 'ard Rock Café in Piccadilly, July 2020 !
Hello CE
Your figures just reinforce my point. So we hand over $200K in shares and we get back multiple millions every year. The $1m in costs will be paid off in no time. Common sense says I clearly don’t fully understand this deal.
Maybe CB will do a pod cast and give us more detail.
The mining company said it has signed a memorandum of agreement with KPZ International Ltd and has conditionally been appointed as contractor to oversee and commence initial production from the Kalengwa dumps of 1.34 million tonnes with a potential to contain 25,000 tonnes of copper metal.
Looking ahead, Xtract said it intends to start a simple ore sorting programme, building up to a more significant ore processing operation within the next eight months, with an annual production target rate of 6,000 tonnes of copper metal.
So, at $6,000 per tonne, that means $150M just from the dumps over a 4 year LOM based on 6,000 tonnes per year.
That means about $36M worth of copper produced each year, before proper hard rock mining starts.
If Cu is sold at a 25% discount that still leaves revenue of $27M per year.
Mining costs should be low as the ore is already out of the ground and been piled up in dumps awaiting hand grading and then simple processing. As the hand-graded ore will be sold first to produce immediate cash flow in order to finance the processing plant that should mean it is self-financing from an XTR point of view. - KPZ, on the other hand could take several years to pay back its debt.
I can only surmise that it is better financially for KPZ to hand the contractorship over to XTR as then they may be able to keep a larger proportion of the income rather than paying it all over to their creditors?
I agree that it looks like a very good deal for XTR, with the potential to provide significant fast-track income and a good question to ask CB regarding what KPZ get out of it.
Let's see if the deal is confirmed following due diligence...
KPZ had a deal done with BZT back in April.
Daz
I think we will understand more as the deal unfolds and it may prove to be a very good deal for Xtract but it can’t be as good as I understand it as it’s a nonsensical deal for KPZ to agree to.
Xtract don’t have any equipment or work force so the only way we could start any processing is to do a JV with another company (like Sino deal) or hire a company and pay them from profits in this venture. Why wouldn’t KPZ just do this, cut out the middle man Xtract and get more profit for themselves. The $200K in shares that they will lose would easily be recovered by cutting out Xtract. The question for me is not, is this a good deal for Xtract, it’s absolutely fantastic, but why would KPZ do this deal and give away so much for so little.
Maybe CB found out about this offer from an email from a Zambian Prince !
I am hearing CB is also trying to negotiate a 50% stake in BHP Biliton for 50% sale of Xtract shares !
Ngup
I take your point but that still means that 33% share will generate $1M albeit not profit to us immediately. KPZ are getting $200K in shares and losing $1M in revenue that we will now get. Why don't KPZ sub out to a contractor with equipment and resources and take a %.
If we, as contractor, are going to sub this out to a sub contractor (as we did with Sino) and like Sino, they take a cut of our 33.3% profit, why doesn’t KPZ just sub this out themselves and bypass Xtract as the middle men?
I’m not too sure what Xtract brings to the table and what KPZ gets from Xtract (apart from $200k of shares) that they couldn’t do themselves.
As I understand it, I would'nt say this is good deal - Its unbelievable. Literally!
If something is too good to be true it probably is. There must be more to this than I understand.
We wont be getting the 33% net profit until the 1m has been paid. So in reality we are paying 200k of shares plus 1mil delayed payment rather than upfront, for 33%. Its a good way to do the deal for us and theyre happy to do it this way. Win win.
I'm trying to get my head around this KPZ deal.
If our 33.3% share (of net profits) can fund the $1m costs I don’t understand why KPZ would want to sell us this 33% of net profit for just $200K of shares.
I may be wrong with this understanding but that's what it seems like to me. Happy to be corrected.