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Https://m.youtube.com/shorts/3uPfxtVxlQw?feature=share
Yeah, it came up somewhere else for me. Why NOT in the RNS as to S American supply ?
Wogen hardly done anything over there as far as todays research for me has gone.
Mainly China supply focused from the previous news, but Walkabout Resources graphite to move away from Chinese supply is about the latest from Wogen.
Maybe they see benefits to 'western' supply now and hopefully some US energy bounty ?
Interesting the web of funding & finance houses Wogen are linked to and links upon links within the web.
Should have put the S American supply in the notes of the rns though if he is putting out info himself on the same day.
Plenty of digging to do on who the supply is from ?
Albamerle owned ? Or SQM ? Both big down there who can spin off from Chinese supply
Well a great day today for #ALK, if not initially for the share price. Very muted response for what is a game changing and company making feedstock deal. It has been clear for sometime that the key to unlocking value is feedstock. Financiers require it. This has now been delivered for Train 1. Wogen Resources turnover $500m per year. I can’t imagine they would enter into a supply deal with ALK if they thought the finance would not be forthcoming. Good to see their CEO saying the project is “exciting”and that they are “particularly pleased to be associated with it”.
Finance likely to be mezzanine debt leading to project level equity and green bonds (per PA). I reckon around $30m mezzanine to complete FEED (per PA). PA has previously indicated this would take around 6 months which ties in nicely with the protected early 2026 production.
So todays deal unlocks revenues of $600m pa, free cash flow of $120m pa and NPV of $930m (from November 23 company presentation). Staggering figures when put in context of a current MC of £11m. And that’s for only one Train of four.
Broker target of £15.30 issued two weeks ago which included an 85% risk discount. Risk has now been reduced considerably so the target should increase.
We are told that offtake is not an issue. So whilst we are advised finance is lined up I guess that will be the next major derisking milestone.
Green Lithium valued at £50m pre money in their recent fun raise. They have not yet secured feedstock. RockTech Lithium valued at £70m (was more than double not long ago). They have not yet secured feedstock.
Circa 45% of the company owned by directors. Share options that only kick in above £5 and £10 and only when certain milestones are delivered.
As a shareholder I am biased but this feels feels like a huge value disconnect and therefore in my view an opportunity.
The latest company presentation (November 23) and investor webinar should be compulsory viewing for new investors. They lay out the path to value creation.
One final thought. The beauty of ALK is that it doesn’t have to go through the process of proving up a resource and extracting it. It is also not exposed to fluctuations in the underlying commodity price as it just charges a refining margin. So in my view whilst ALK is a refiner and not a miner todays deal effectively allows ALK to leapfrog other integrated miner / refiners who still must prove up and extract their resource. The resource is now handed to ALK on a plate with this deal.
Very happy to hold and delighted with todays news.
The company issued a short media clip featuring Paul. Quote "will supply with technical grade carbonate from South America". Its also what Paul alluded to on last weeks investor webinar.
Having said that I can no longer find the tweet with it on.
ALK buys lithium from trading companies, so they can't buy it cheaply.
I hope they get lithium from the mining company.
However, it is important to have multiple suppliers
I just hope they do well and we get a big profit.
Patch, where in the Wogen rns does it say S America?
"Headquartered in London, Wogen has offices in Beijing, Shanghai, Guangzhou, Hong Kong, Johannesburg and Cleveland in the USA. "
Big supplier of graphite to Asia - China mainly.
Joburg interestingly in connection with Acrux capital who deal more with lithium and tied up with FinTech.
Nothing / nobody on any research pointing to S America other than Paul? We all know he wants brines from S A but this rns has no mention?
Major Oak - its from South America
CEO shows links to ALK TVL and those over at Pensana with their REE project ?
"In South Africa, the world's foremost producer of platinum-group metals (PGMs), a significant amount of minerals can be obtained from the country’s vast amounts of PGMs tailings, that are found in the Bushveld Complex in the Limpopo and North West provinces."
"Mineral recovery technology company FineTech Minerals, in which Acrux Resources is a shareholder, specialises in the recovery of fine and ultrafine oxide mineral particles.".
Very much like reduction of spodumene to Lithium sulphate for transit saving 90% of waste being shipped across the globe?
https://m.miningweekly.com/print-version/-pursuing-critical-minerals-in-discard-tailings-2023-08-14
UK Lithium supply to Tees Valley Lithium from South Africa ?
https://acruxresources.co.za/?trk=public_post-text
UK Lithium gets boost in Tees Valley Lithium supply.
https://www.wogen.com/trader/kenta-brown/
Wogen are opening up lithium supply as part of their expansion. Very much more in to REE's and Graphite.
This is a big step up for Wogen !
I will be following Kenta over the next weeks and months.
Q - What happened to Optivar / Traxys merger and MoU with TVL ALK ?
Still this is movement forward.
The next news is finance.
It is a very interesting time. :)
This is excellent progress. Firstly it unlocks the last part of the jigsaw for financing; 5 years supply for a the first train is significant. Secondly and just as important in my opinion is that it de risks the ALK/TVL option for OEMs, Tier 1/2 suppliers and other potential feedstock providers. As things stand today there isn’t enough global lithium processing with strong ESG credentials to go round and getting this operation funded is going to increase its attractiveness and could potentially swing any 50/50 decisions ALK/TVLs way.
VSA, the broker, recently gave ALK a target price in excess of £15 and this news has to drive it firmly in that direction if not above….
Https://vnexplorer.net/monsters-of-rock-allkem-flags-growth-over-dividends-ahead-of-livent-merger-s6782705.html
Very interesting view of global lithium from the 3rd largest player. No dividend but reinvest the profits from last 12 months boom in to increasing its opportunities.
M&A with low sector market caps will naturally grow quickly from here.
Nobody else bothered to put it up ???
Tees Valley Lithium UK LITHIUM Webinar link
https://m.youtube.com/watch?v=YkOQGfpYZ_8&feature=youtu.be
Further to European Lithiums rns...
"The Transaction is progressing through the approval process and remains subject to SEC and Sizzle shareholder approval as outlined above.
Upon the closing of the Transaction, EUR will be issued US$750 million worth of ordinary shares in CRML.
Tony Sage, Chairman of EUR said “The company is excited that after a long and exhaustive process we are the final stages in seeking the SEC's approval to list on the NASDAQ.”
Lithium globally and UK M&A towards a lithium suply chain with EU, USA, South America & Australia.
As always my postion I declare over a year ago now.
Pilbara Minerals in a JV / partnership or buyout.
NOT INVESTMENT ADVISE. DO YOUR OWN RESEARCH.
Since my initial position I do see a credible point for Albamerle in this current last month or two to be a very interesting company who also could do what I think PLS may well do. A bidding war would be nice.
A good example of the global transition of miners, OEM's, chemical producers ( brines in the main )
"On 26 October 2022, European Lithium announced that it has entered into a business combination agreement with Sizzle Acquisition Corp., (NASDAQ: SZZL) (Sizzle), a publicly traded special purpose acquisition company, pursuant to which EUR will combine its wholly owned Wolfsberg Lithium Project (Wolfsberg Project) with Sizzle via a newly-formed, lithium exploration and development company named “Critical Metals Corp.” which is expected to be listed on NASDAQ under the symbol “ CRML” (Transaction)."
#ALK will be hosting an update webinar on Wednesday 1st November at 12.00 pm following recent key updates on the strategy in Australia as well as feedstock/offtake progress.
ALK will be represented by Paul Atherley, Non-Exec Chairman
Link to sign up to the Zoom meeting is on Alkemy's Twitter page
“No significant dilution” has been the stated case since Alkemy first published their prospectus, nothing new here.
‘No significant dilution’
So there will be dilution, wonder how much
That all depends on whether you are an Investor or Trader,. There is a huge incentive not to sell when there is a 50% discount on Capital gains Tax profits for shares held longer than twelve months. With projects like this you are either an Investor who believes the potential for Mega returns or if you are a Trader you should forget about the story and only base your decisions on market movement.
Easy to whinge because we take the info from experienced entrepreneurs like the CEO who really should know better than to give pessimistic timelines, and invest on that info. He should've known that he's got a lot of ground to cover before any notion of funding was to be regarded as being realistic.. Which were the questions I asked.
I'd rather wait to invest on confirmed news, yes, I'll miss the initial rise from these levels, (should news drop tomorrow), but I've made many times more since I extracted my cash in early summer and invested elsewhere. To each his own, but I don't see the time being wasted in leaving cash tied in one stock for so long with no timeline clarity from BoD.
Very easy to whinge about timelines and yes indeed, company were clearly over optimistic re 2nd quarter 2023. But it isn’t easy to negotiate an enormous deal with a global automotive OEM either and if that takes some time then that’s fine by me 👍
O&W, not AIM, but I agree with your views.. Infact I got kicked out of Telegram room prob because I was too factual and they didn't like it, not balanced views IMO!... but seems the market agrees with me... and it is where it is!
Nobody likes missed timelines, promised news by 2nd quarter.. never happened, and now heading close to 4th quarter, yet no offtake so no funding for big picture project.
Good luck to those still holding, but thank god I sold out and used the money elsewhere which has been much more financially beneficial to me.