Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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The update doesn't signal that a deal is imminent which gives traders the confidence to dump with a view to re-enter a few weeks down the road, that never helps in regards to the sp reaction.
There's a proper company being built here for the future but Anthony is doing an awful job on certain fronts and if it wasn't for the high tin prices the share price would be closer to 3p than 4p - I agree with your sentiments, it's time to hear more from him now.
Agree with your balanced view HarChris.
I would like a brief interview by AV just to explain the strategic new process thinking and what has been the main reason no deal came forward after a year.
Investors deserve a little more clarity otherwise sentiment drifts, maybe a bland update, but don't forget there is lots going on and the likelihood of some more good news in the pipeline in the coming months ahead.
I agree that this seems like an overreaction although I can understand why some investors are losing patience
The main disappointment is slow progress on the lithium front, the process to find a partner (now partners) seems to be going on forever but I'm sure there will be news on this soon, maybe before the next quarterly operational update. The second disappointment is higher than expected AISC but that'll come back down through the rest of the year. The margin being seen, even at say $28k aisc, is the best Andrada's seen in 18+ months. And it's even more guaranteed now with ~25% hedged at $33k, although obviously limits the upside slightly if tin prices take off.
I thought this was the best bit of news in this update:
'Further assessment and modelling of the integrated plant has resulted in an increase in the planned petalite production tonnage from 30 000tpa to between 40 000tpa and 50 000tpa.'
Call it an additional 15000tpa petalite at $1500/t, that's an extra $22.5m.
I can understand the fall but 52 weeks lows despite having secured Orion finance deal within that time frame, DBN financing, closed to Namibian bank financing conclusion and very consistent tin operations with improving margins seems excessive to me.
Kick in the Crown Jewels has the same effest
Agree, I topped up again this morning.
Operationally all is as expected, they always seem to deliver, but this damned Strategic Process is killing us.
The comms around it have been appalling from the very start. Let's not forget, ATM themselves said in June 2023 - "The entire strategic process is targeted to conclude at the end of September 2023."
There has been no meaningful update as to why it'll be a year late, and why the scope has now changed - that's just no good enough.
Cracking company
What an opportunity to buy in at 3.9p
A no brainer at these prices
Big over reaction here, short term traders leaving as no news on deal..... That's fine. Q1 mostly as expected really. Seems obvious to me EU is one of the offers which needs a bit more time, and all offers waiting on the drilling results and possibility of copper, ATM trying to bring this altogether for the benefit of shareholders. An interview would be good.
Certainly think AV needs to have a conference call for shareholders ASAP, there’s a lot that needs clarifying from my standpoint.
This is the first time that I don’t feel AV has been totally upfront with details on the partnership and as a shareholder this makes me feel a little uncomfortable.
As for the tin side I’m ok with progress there. I certainly get the feeling that if this damn partnership news had never come up in the first place the share price would be significantly higher than it is now, it’s now turned into a millstone round the neck!
There was me thinking I'd never be able to get my average below 5p...
Who knows Tiger but, the EU should be throwing some serious money around in a few months time. Unless he is bare faced lying then it's the only thing that makes sense to me. I don't think he is a bare faced liar.
A couple of EU Lithium plays have signed deals in the past week, a few others are waiting for their grant applications to be approved. So the timing makes sense, it's just a shame we have been waiting so long, I hate being in the dark as much as anybody. I imagine AV didn't even want to talk about the strategic review in that update but he has to at least mention it. I agree it seems a bit foolish from where we are sitting to be relying on the EU machine, but there must be a good reason for it (if I am right). I guess we'll know soon enough.
Anthony viljoeon has a lot of explaining if he would like to communicate with investors properly
AV was involved over at BMN with Fortune and look how that turned out. These people like to blow hot air a lot and over promise
Sharechap,
if that theory is correct (and i dont think it is) then that is a dreadful decision to pass on eye watering offers to wait for the EU to sort themselves out. why would anyone do that, even if as you say "see what you can get for free" (not sure if that means the partner or us).
eye watering is eye watering, its prob got far more to do with the lithium price and the slow moving nature.
is there anything better than eye watering ?
Whilst I'm disappointed with the lack of meaningful progress on the surface of things, I suspect the delay with the Lithium will be to do with the EU Critical Raw Materials Act. The EU are due to be dishing out grants by the end of the year and I wouldn't be surprised if we are partnering with a company that is waiting to see what they can get for free - otherwise the 12month + process doesn't make sense as he was getting offers galore last year apparently (probably Chinese). This is possibly why the strategic review has now incorporate other metals, maybe it's all related to getting as much money from the EU as possible and ticking as many boxes as they can, which will hopefully mean a much better deal for us shareholders.
This might also help explain the almost 180 degree turn in keeping shareholders abreast of what's going on by ATM over the past 12 months. Probably a lot of plates spinning and having to tread a fine line politically. I really hope I'm right with my guess and long term holders will get rewarded in the end.
The partnership process started from scratch again. 12months+ there.
Elsewhere theyve covered up in the wording that theyve fed significantly lower head grade ore or their metallurgical recovery dropped significantly.
Hi TDT - yep, we were both hoping Horizonte would be very successful, given their steady progress, large Instos on board, etc., yet disaster ensued through deception, as we all know now; at least, Andrada is already producing a growing output of tin / some lithium and tantalum with cash to keep going, for now, anyway.
Was hoping Andrada would recoup much of that painful experience, given where they are today but AV's earlier 'hype' over all the partnering interest in them looks misplaced after today's RNS. They could still deliver but it's going to take longer than we were led to believe, unfortunately - hence this morning's sp reaction - sasa.
As soon as an RNS doesn’t start with ‘We are pleased’ you know it’s a not a good one
To add to what TDT just said Sodium's lattice structure prevents it from being a compact energy source like lithium, so the battery would be less efficient and also huge
regarding todays RNS let me know if you want me to say anything, would only be a repeat of what i have said before on mr eye watering.
Hi sasa43
We were both in Horizonte so it might be a hang over from that investment that's coloured my view here. I could be wrong but after reading the RNS and having closely followed things these past 12 months it seems to me like there's been a change in emphasis. Then again WTFDIK.
saigonsally
Sodium will be used in batteries which have a static applications. It will not replace lithium where weight to energy density is critical.
TDT
TDT, I have to agree with you 100%. And at this rate by the time ATM have lithium to sell the world will have switched from lithium to sodium.
Suprising how many come out of the wood work spouting negative views haven’t seen these for the last 6 months … weird that is
Yep, have to agree with that, TDT - very underwhelming, at best...
"Broadening the scope of our strategic process" implies there were fewer takers in the event, to me, anyway, so the LTHs have an even longer wait to see if AV can eventually pull something out of the hat. Another 'bottom drawer' job beckons, I guess - sasa.
Somnamna. Your other share Cey has dropped 12% since April.
Don’t give up your day job.
I’m not interested in finding a partner, shame it is being used as a stick to bash the share price.
I would prefer a share price that is rising not one that has just dropped 12% on the RNS
Am I the only one on here who prefers a delay to the strategic outcome until the macro environment for Lithium is hopefully much more favourable than is the current situation.
Surely it’s much better to await for a great commercial deal for the Lithium asset likely in a few years time than to enter into a crap deal now being caused by the depressed Lithium price, etc.
Our lithium ain’t going anywhere in the meantime…..