Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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They could pay a “special dividend”
Loss making co’s frequently return cash this way (doesn’t matter about losses)
But the thing is they won’t pay a div because 15 million over 3 years is already a fairly limited exploration budget.
CB needs to come out with some firm facts on funds and drill dates.
The market won’t rule out a placing where Birds concerned (did one recently at Bzt that pretty much killed hope for anyone that held for years)
Until it’s there in black n white writing that’s he’s drilling without diluting again mkt won’t rule out placing.
The sell price here has just dropped to 0.8p which is pretty mind numbing.
If a dividend from the manica cash is not allowable due to accumulated losses, how about a share buyback programme at these very low prices? a £ million set aside to buy shares consistently over 6 months would reverse a lot of the BR dilution and give the share price a strong boost. IMO.
A thought stimulating post there Mr Zap.. thanks.. and while I absolutely agree that low inflation/interest rates and good global economic performance for a sustained period are fundamentally important to the future of Bushranger, I only agree somewhat with your comment '' A Copper spot price will not have a real influence on a valuation per-sae''
Psychologically, a sustained seriously bullish USD 10k ish per tonne copper is very important towards a sporting chance of a meaningful Bushranger sale event occurring in 2025 or 26 imho..
(For context, I think copper has only once been over 10k USD a tonne once previously - 2011 ish - and even the USD 8k + per tonne we're recently at is a good/ very good price versus long term historic averages .. Also -for whatever it may or may not be worth - I note that Mr Bird gave his latest PoC forward view on that Galileo podcast that Flipper recently kindly posted here as rising to USD 10.5 k Per tone q3 ish 2024 and thereafter in the USD 9.5 k to 11 k per tonne range for a couple of years ..
For me, such a USD 10k ish per tonne PoC is one of the minimum requirements - alongside low interest rates / inflation, strong global economy/copper demand etc - to see Bushranger have even a chance of meaningful sale event in 25 or 26 )
Yes an increased copper price will need to underpin the future viability of BR, but more importantly short to medium term , global economic stability, low inflation and interest rates, will see a reduction in the very costs that will have the biggest effect on the financial performance of the NPV model which the company are currently optimising. A Copper spot price will not have a real influence on a valuation per-sae.
It will of course need leading economies to grow for demand to increase before copper rises sustainably.
"Any guesses on bushranger value as it is"
· The current Racecourse Prospect Mineral Resource has the potential to be economically mined at mining rates of 20Mpta, or greater, and at copper prices of US$10,000/t and above.
The Bushranger Study concluded that the highest post tax NPV8 of AU$363m (NPV10 - AU$265m) processes ore above
0.10% CuEq at 20mtpa with a sale price of US$11,000/t.
So worthless until POC its $10K and even then no one will want it as profit is marginal. POC needs to be above $11K before anyone would want it. I think POC will be hitting $12K + in next 2 years so it will probably be sold but not for another 2 years. Bottom drawer for me re Bushranger but hopefully sp appreciation from Zambia after drilling starts??
https://www.lse.co.uk/rns/XTR/bushranger-pit-optimisation-financial-study-jxp0lzmb606mvwu.html
At $4/lb and the AA clause in action I just don’t see anyone taking it off XTR hands or XTR adding value to it (Zambia is clearly the focus) so I think a value of 0 is about right.
If the price of copper starts going up and the futures curve is robust this changes things for me, alternatively if CB is able to deliver on what he spoke about at the AGM and negotiating an exit to AA Claus this also changes things for me as I’m sure the asset would be of interest to people (has potential etc)
Cheers
James
Any guesses on bushranger value as it is.
1mill or 100mill ?
Only thing CB does, as far as value is concerned. Is destroy it.
That buy was nice/interesting, in fairness.. but disappointed to see it being followed by a few few k sells .. hence no price rise.. and sellers at this level is salutary
At least the volume should now be over 2m here today.. like Friday was.. first trading days of this month over 2m traded .. still abject .. but less so, at least
(Re CB's salary.. his other AIM companies are paying him too of course .. and when he gets bored of one he just flips to focusing on another(s) that's more fun at that time.. so, in the round, he's entertained and well paid.. all the rest is - not - for the Bird(s))
He's doing OK from it though, since the last RNS on 23rd Feb he's had over £11k in salary.
Why would you sell that golden goose ?
So Colin, the shareholders here want a dividend. It would create what you said you were trying to do which is to add value. The whole company is worth 7 million at the moment. Its worth more sold off now.
This morning.
That's nearly £9.5K worth.
That qualifies as high rolling here, maybe the old one is about to speak.
More incredible bull......g again... to save the day?
I haven`t been following the SP for quite awhile now and obviously things have not improved, are we expecting the incredible bull......g man to actually come up with something and save the day? GLA
To be fair, Colin explained at the GM regarding sharing cost of the geo's, saying each co basically paid a part of the salary, so relatively little cost to each Co, ie knowledge of 5 for the price of 1, words to that effect. Sounded a good deal really, just hope we are going to get our fair share of the work, rainy season coming to end now, let's hope April brings on a flood of news.......
I wonder how much gold colin received in a very sturdy brown envelope......
Https://xtractresources.com/wp-content/uploads/280124-Xtract-Presentation-.pdf
Many months ago on here I said Bird could probably spend the Manica revenue on his other, non earning companies if it was possible. After all, they each pay him a seperate salary so they can't unofficially be propped up by the one who's making any any money could they ? That would look like a nest feathering excise and possibly illegal.
He wouldhad to find a way to do it legally and without too much backlash from shareholders.
Reading this presentation it has two references to something akin to this.
On page 11 where the seperately listed companies are referred to as "Group companies African Pioneer and Galileo Resources also hold licences proximal to Xtract’s ground" So XTR is in a group now ?
A Group ? They'll be sharing their resources next.
The very next two paragraphs state :
"Sharing of admin, logistics and personnel with reduce OPEX
• A strategic alliance sharing technical data for the common good,
using an exploration team that “has its eye in” for the geology"
I wonder who will be paying for this sharing then ?
The one with a (hopefully) steady stream of cash for the next three years ?
I hope XTR won't be giving them cheap loans and will be charging them for services rendered.
We already have too many fingers in the pie.
Bird should have told MMP that we wanted our money in full and maybe they should find the money through borrowing etc.
He took the weak easy route, the tail wagged the dog. Half in one go would have been almost acceptable.
The SP is were it is because there is no guarantee we will get our money and the uncertainty will only reduce over the next three years.If you think the board is creating wealth have a look at the SP, that will show you what wealth Birds' decisions have created.
On the 24th August 2023, Colin announced the joint venture buy in in Zambia. We were promised:
- Over a 2 year period, no less than 2m USD spent in exploration
- Physical activity within the Licence boundaries (including but not limited to mapping, soil geochemistry, geophysics and drilling)
- Desktop studies, laboratory analysis and interpretation of data and results
6 and a half months later, we had a progress report RNS stating we have acquired "a major historic database created by Anglo American plc"
In this RNS, there was more space dedicated to Ivanhoe Mines than there was to anything that Xtract have done. (See RNS: https://www.lse.co.uk/rns/XTR/update-on-zambian-copper-joint-venture-strategy-t9boam901fuw0lm.html )
Now, almost 7 months to the day that this venture was announced to the market, have Xtract done anything apart from receiving a database?
Colin's wage over the last 7 months amounted to around 70k GBP. Apart from getting rid of our money making asset and the above acquisition of some data, how can he justify such slow progress?
We are now 99.8% of our way to a death by a thousand lashes. Throw us a bone, Colin. Get on with man. Do some work. Earn your salary!
Again I would agree with you,there had to be an exit strategy from Manica due to the volatlty of income due to weather,location,ground conditions ect.
However having paid $12 m for the resource would you say that was a fair return on the investment.
The spread of payments over an extended period of time that are not guaranteed makes the future uncertain.
This share now is a gamble on Zambia. I am reminded of a quote “the definition of a mine is 'a hole in the ground with a liar standing next to it.'” sorry that should be 'ole.
Yep I’ll have 50% as a special divy as his only going wiss the money up the wall. On top of that his still going have to do a placing. Regardless of suggesting Manica deal would avoid this. That was just convincing you to vote for deal whilst he bent your arm behind your back.
Who here would prefer at least 50% the Manica cash to be paid as a dividend and not wasted.
Just like if you do and comment if not.
The only way anyone makes anything here within 5 yrs is if he can sell bushranger. There is nothing else.
Is he actively trying to sell.
I presume you are joking. We got stitched up by Bird and now locked in. No value created for holders here. Its worth .085p and I'm down thousands.
Gold soaring....MMP rubing their hands!
Great shareholder value being created by the board!