Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Couple of very good points r7632! Lots going in our favor
I thought the RNS gave lots of good news. Yes the timelines are being pushed out. But.
1. Its obvious that the unstoppable adoption of Electric Cars and Storage Systems for renewable energy is creating huge demand for more Lithium batteries and Terrafactories.
2. M&G wouldn't have increased their investment if it was going to sold out for 25p. Its looking for a big payback for it's risk.
3. Hanwa would not be investing and offering up 25Million for construction.
4. Ganfeng need extra Lithium for all the supply deals it has. Would it rather be paying Australalia or t he South America Salar companies, or be in there owning 30-50% of something producing lithium at 4000usd and sold for 11,000 usd?
This is getting closer to progress every month. Wish it would be quicker. But this seems a reasonable safe bet in the current pandemic. That is demand is still there. Fundamentals are the same. Cost justification is there.
Unlike many businesses which are on very shaky ground at the moment.
If a buy out comes along, you will get a vote but if agreed you would have to sell at the agreed price.
But I agreed with you. This is undervalued and I can't see anything like that happening at this price. Maybe this is why we have the heel dragging. Waiting for the share price to recover to get a better issue price?
Can you buy out the existing shareholders for 25p?
I understand they can issue new shares to finance the build. This I expect. But I wasn't aware I could be forced to sell my sell at a price I don't wont to.
Understandable frustration but I still think that this is one of the more promising micro cap mining shares currently on AIM. CEO isn't the best but he doesn't ramp a whole lot either, that's a positive and negative! Agree that one of the big partners could take us all out but anyone who invests in AIM shares will know that that is a risk with all micro caps.
I am also out after 2 painful years here. A sub-standard CEO with a bad cough and juvenile presentation skills does not convince me that he has what it takes to deliver a pizza never mind a fully producing lithium mine. I take a large loss on the chin here and will move on to find companies with CEO’s who possess relevant skills in all areas, a significant stake and a CV of delivery rather than dither and delay! Good luck those on here who have been here for a couple of years or more, you have more patience than me.
adv11 good post.
I believe you were early to the sector, and would probably argue we are still a little early now. The conditions dictating guarantee of transition to a lithium future, creating the supply/demand imbalance, are still a little while off hence you see figures quoted at 2030 projections in the likes of today's RNS. I think there is scope for investors to be vastly rewarded here, however with the market maintaining such an "inefficient" looking valuation of £50m here against the project NPVs and inherent value for so long, I agree with the notion that it seems ever more likely that this gets taken out at approx 25p by one of the stakeholders. I do not see enough Director skin in the game or motivation for that not to be the case, accompanied by healthy salaries for all the BCN incumbents.
psychological*
Sorry to hear about the losses adv, but well done on EMH! Always nice cashing in a profitable investment.
With Bacanora, we pretty much have a shovel ready project. Yes the constant delays are very frustrating indeed, and are a physiological challenge each time they are announced. Delays are almost part of the process with any construction/mining operation so I think we just have to accept it.
With guaranteed off-take already agreed, it feels its pretty much impossible for this not to get to production, and when it does, we are talking many millions on the income statement and valuations in the low-mid 6 figures in my opinion.
The upside is still here for us. We just need to wait. As with all good investments, patience works in our favor.
Excellent question @wolfi_at I am pleased it's not just me who questions what type of calender BCN are using.
I invested in Lithium seven years ago. REM/KDNC in 2013, BCN in 2014, and EMH in 2015 - I saw a timescale of around 5 years which was just right to buy my retirement bungalow by the sea. Seven years later I have had enough, what an absolute idiot I have been. An idiot who listened to that lovely man Lenigas who took the trouble to reassure me on twitter. An idiot who was taken in by people like "Degsie" and his latest punch line "Reiterate target price of 114p". Sorry Degsie, there is no one left to be taken in by you or VSL. Who was it that used to come out with "Be Patient" ? Mermillions ? That one had be in stitches.
BCN, well I expect to be dead by 2030, and so will BCN. We are heading towards a take over at 25p by the Chinese and Japanese giants. Not yet, give it a few more years before they part with any more money and give high paid jobs to the former BCN board.
I quit EMH when I could see there was no plan, never had been, just a few holes drilled and sit and wait.
I quit KDNC when the noise from it's supporters started sending me deaf, and yet another life saving project appeared with all its subsequent complications.
I today quit BCN. The money I have left is now almost all in high dividend paying companies to provide a bit of comfort in my retirement - just UJO left to give me a glimmer of hope. Not much hope because that is another company ruined by traders and AIM gangs.
Actually, I haven't done too bad. I did some excellent trading on EMH to come out with £11,000 profit. BCN I have lost £11,800. KDNC I lost £23,000. The sad fact is that no one seems to be benefiting from my loses. Just money down the drain.
Good luck all, please do not trust anyone. Give your money to the homeless, at least they appreciate it for the few minutes it takes them to score and smoke it.
RNS is another disappointment ... just to remember .... from RNS Number : 9795W from 07 AUGUST 2018 (!!!)
WTF are they doing all the time since then ?? Someone should ask them on the next AGM about this fact !! WHY does these delays have no consequences to the managament & PS ?
Project Development
· The Front End Engineering Design ("FEED") for the Li2CO3 processing facility is currently scheduled to be completed in H2 2018 and the ongoing design scope includes the following critical areas:
o Pre-concentrator
o Roaster/Kiln
o Crystallisers/Evaporators
o IX and packaging
o Energy supply contracts
o Infrastructure and access
· The Company continues to build its Owners Management Team to work with and manage the FEED engineering groups
o The Company now has over 50 employees based in Hermosillo working on the FEED and being trained in the pilot plant
· The pilot plant continues to produce samples of battery grade Li2CO3 for distribution to potential end customers in Asia in addition to the ongoing metallurgical flow sheet optimisation work and other testwork
o Significant effort is being placed on training local personnel in all operational aspects of lithium process plant operations
· Modified environmental site permits ("MIA") were granted in May 2018 allowing the location for the Li2CO3 plant to be optimised for future production
· Once the FEED has been completed and all designs, cost estimates and process guarantee scopes are in place, orders for long lead items can be placed and earthworks can commence, subject to funding being in place. Subject to completion of funding discussions and FEED, the Stage 1 project commissioning target at Sonora is likely to be in H2 2020.
which as usual lse have failed so far to pick up on