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answers on a postcard...
see the links posted below... worth reading the egm details and analysing the voting profiles...
the blocker seems to have been a single shareholder with a 0.45% holding of the h shares...
ganfeng’s finances look solid... for a company investing in global expansion and in fast track ramp up mode... buying up the most desirable lithium assets on the planet...
it wasn’t you was it addicknt...
a read.
There's a very interesting article on the BBC web site business section about lithium mining in Chile; specifically the operations in the Atacama desert. If I were a shareholder in Albemarle I'd be very concerned. By contrast and by implication, this is could be good news for BCN.
By the way, as far as the Ganfeng situation is concerned, I'd have thought the following three situations apply to their recent fund raising issues:
1. They already have sufficient cash and the investment in BCN will be unaffected.
2. They don't have the cash at the moment, but are happy that they will still be able to complete.
3. They don't have the cash and will need to withdraw.
Either way, it seems to me that the answer to these questions is already known and should be communicated to shareholders.
paying $160m for the remaining 12.5% option on olaroz...
pro-rata that on a simple % basis...
$352m for the remaining 27.5% option on sonora lithium ltd...
any arguments for a premium... or discount if you like mrc... based on other comparisons between the two resources...
Thanks Tomcat - also to allay any concerns re a possible impact from the recent right issue vote the HK exchange filing by Ganfeng in relation to the BCN deal states as follows:
(II) Impact on the Company of the [BCN] Transaction
In spite of certain net outflow of cash flow of the Company, the transaction will not have any noticeable influence on the working capital of the Company and has little impact on financial conditions and operating results of the Company for the year 2019.
It references subject to prc which as per last rns they have ?
Can’t imagine the other 2 being a problem
Thanks for sharing tomcat
Very reassuring
looks like pocket money to them
details of such... for reference... https://www1.hkexnews.hk/listedco/listconews/sehk/2019/0628/ltn201906281856.pdf ...
22.5% sonora lithium ltd and 29.99% bacanora lithium plc next on the todo list... ;)
they’ve just completed on the olaroz acquisition... now 50% ownership of the project with jv partners lac... https://www1.hkexnews.hk/listedco/listconews/sehk/2019/0818/ltn20190818013.pdf ...
agree with that tomcat-14,
and yes, your post on the Ganfeng H shares shows it was very tight:
As not more than two-third (2/3) of the votes held by the Shareholders and proxies who attended the
EGM were cast in favour of the resolution, the resolution was not passed as a special resolution.
For:
65.1593%
Against:
34.8407%
Not as bad as I thought, worth reading the pv magazine article again and with the voting so close it paints a very different pictue:
https://www.pv-magazine.com/2019/08/14/ganfeng-lithiums-hong-kong-based-shareholders-rebel/
You could very easily believe that 65% of holders voted against whereas it now looks like those holding 65% of Ganfeng voted on the issue of H shares of those voting 65.1593% were in favour just short of the 66%+ required and in fact just 34.8407% voted against.
Of course, the outcome is still a no vote but not a 'Rebellion' by any means.
Well if this was a Brexit vote we wouldn't be in such a mess now!
me2 jimb... and we know from bcn that the offtakers are impressed by the colour of sonora lithium... quality product... meeting tomorrow’s specifications...
rock, brine or clay?
https://seekingalpha.com/article/4286259-lithium-spodumene-producers-trouble?dr=1
Spodumene is looking very risky, I feel better about clay and producing battery-grade at the source .
rock brine or clay... which one is best... ;)
https://www1.hkexnews.hk/listedco/listconews/sehk/2019/0814/ltn20190814003.pdf ... it was a very close call... after all...
or ganfeng may need to cherry pick... and go back to their shareholders on a project specific funding basis... rather than a wholesale... combined rock brine and clay investment...
https://www1.hkexnews.hk/listedco/listconews/sehk/2019/0628/ltn201906281312.pdf ...
surely bcn will do their own dd on ganfeng too... there’s no point giving 30% of the company and 22.5% of the project to ganfeng... if ganfeng can’t support the defined funding responsibilities that come with that...
but there are other ways that ganfeng could raise the cash required... if their existing shareholders don’t want to chip in... conventional ways... and using a historical phrase... something unique maybe...
suppose ganfeng had a responsibility to offer it to their hk shareholders before they can pursue the alternatives?...
Just had a read through and can’t find any caveat that it’s dependent on their shareholder approval,?
Yes and Southern Copper were very interested
Just so happens we had/still have ? an NDA with Tesla they no exactly who we are.
and of course Tesla are looking.......15/08/2019.....Elon Musk isn’t afraid to buck conventional wisdom about sticking to your core business - Tesla builds its own batteries and even seats, and it has branched out into stationary storage, solar panels, and flame throwers. During Tesla’s most recent shareholder meeting, Elon said the company might get into another line of business - mining. He implied that taking control of the supply chain for the raw minerals used in its batteries might be a necessity as Tesla scales up production and adds more vehicles to its lineup.
however if it is a rare collectors item that is a different matter.
I dont think business quite works like this.
To use a car analogy, if you are looking at a used car and a month later the owner calls you and says the previous deal fell through -- answers on a postcard as to how you would probably structure your new offer !?
ok, once again the data with actual MC:
Post tax NPV of Sonora $800m x 77.5% (current BCN ownership) = $620m
Post tax NPV of Zinnwald €270m x 50% (current ownership) = €130m = $144,18m
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+ Cash and cash equivalents (Feb.19)=$20,47m
+£14.4m for 30% of BCN = $17,5m
+£7,56m for 22.5% Sonora=$9,16m
-----------------------------------------------------------------------
SUMMARY:
Total post tax NPV to BCN shareholders = $766,8m
Mkt cap (+30% Ganfeng shares already taken into account) = $68,9m
Cash and cash equivalents = $47,13m (- costs for 2019)
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wouldnt suprise me if there are other players keeping a very close eye on the Gangfeng deal secretly hoping it falls through so they can sweep in (wishfull thinking anyway).
if Gangfng where happy with the resource, it must be good enough for others as well!!
I have had acknowledgement of my email from PD's PA.