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financing...
once ganfeng completes its review... the company will deliver final engineering costs for stage 1 of the project... following which the company will look to finalise the funding package for the project... at this stage... the company believes that the engineering costs will remain in line with the 2018 feasibility study forecast of approximately $420 million...
the recent 29.99% equity investment by ganfeng lithium and their 22.5% investment at the project level... in combination with a combined 100% off-take held by ganfeng and hanwa for stage 1 production of 17,500 tonnes per annum of lithium products at the project demonstrates the strong support that both these cornerstone investors have shown in sonora...
combined... ganfeng and hanwa have a see-through ownership of more than 50% of sonora... in the last 18 months... bacanora has already secured a $150 million debt facility with rk mine finance and continues to explore additional sources of project funding... the 22.5% project investment and 29.99% equity investment from ganfeng... in addition to ongoing support from bacanora's other shareholders and off-takers... ensures a very solid position for finalising the project funding stage of the Sonora development...
the company had $40 million of cash at the end of october 2019... which will enable bacanora to commence the bulk earthworks on site in h1 2020 and start to upgrade the primary access road to site... the company will also be able to use part of these funds to place the initial orders for some of the longest lead-time items in the concentrator pyrometallurgy and hydrometallurgy sections of the lithium plant...
Cash: 40m US$ = 31m GBP -> current valuation for Sonora proect + Zinnwald project = 21M GBP = 27M us$ thats CRAZY!!
the "valuation" will increase by each day the project is progressing. even GANFENG´s technical expertise and knowledge has incredible value for the company and for the SONORA project and the probability to reach production in time and keep within budget is higher then ever before.
Wolfi who is valuing at GBP 21M? Thats extremely low :O
= current MC - cash ...
Finally some logic wolfi. To those who think the current valuation is justified given a bit of financing to resolve down the line is utter madness. I’d argue the majority of the current capitalisation is covered by Zin alone, let alone cash, and Sonora! Absurd valuation inefficiency.
Ahh I see.. thanks Wolfi.
Will anyone be attending the AGM?
Do we know date of AGM?
Not yet I dont believe but I am keen to get over for it
Presentation on the 28th
https://www.proactiveinvestors.co.uk/register/event_details/219
Guangzhou-based electric vehicle maker Xpeng Motors announced Wednesday that it had raised $400 million from investors, including smartphone maker Xiaomi, and won “several billions” in Chinese yuan of unsecured credit lines from lenders including China Merchants Bank, China CITIC Bank, and HSBC.
It’s a rare show of confidence in a sector that has been hit hard by a nationwide slump in demand for cars, not to mention sharp reductions in government subsidies for electric ones.
Some history: China is the world’s largest auto market. In 2018, auto sales topped 28 million vehicles, compared to 17 million sold in the United States.
But this October, total vehicle sales in China declined for the 16th consecutive month, while sales of electric and hybrids cars tumbled to 75,000, down nearly half from a year earlier. Back in June, Beijing began scaling back subsidies for individual purchases of new energy vehicles.
Property conglomerate China Evergrande, which has spent nearly $2 billion on EV-related acquisitions, said Tuesday it plans to slow investment in electric vehicles. True, Chairman Hui Ka-yan, China’s third-richest person, vowed Evergrande will invest an additional $6 billion over the next three years to become China’s largest EV manufacturer and Tesla rival. But the company is scaling back the pace of that investment. It now says it will delay release of its first car until next June—a year later than planned.
Other Chinese EV makers are spinning their wheels:
• The current industry leader, Warren Buffet-backed BYD, has sold more than 185,000 vehicles so far this year. But BYD reported a 51% year-on-year decline in EV sales in September.
• Nio, whose founder styles himself as the “Elon Musk of China,” has burned through billions of dollars in venture funding and, despite a glitzy marketing campaign, reported a $1.4 billion loss last year, forcing the company to scrap plans to build a second factory in Shanghai.
• Nio’s share price, which surged to a high of $12 immediately following the company’s September 2018 debut on the NYSE, has since plummeted below $2.
In the old days I would have done, but now we live in rural Devon its a long haul to central London....
Do you think they are worth going to?
I've only started out investing and have never been to one.
I'll be coming from Ireland
Having been to a couple I would say - no..They will never impart any forward info and will sugar coat anything else.
Having said that I would have liked to have gone to the KDNC AGM again to call them out on the 5 year long dire share price performance but I think only the luvvies went...
Why should that have stopped you ....;)
Spending £100 on trainfare for nothing stopped me !
did anyone here go to last years agm... it was the 1st ever bcn uk agm...
Spending £100 on trainfare for nothing stopped me !
I find once your already bought a car its the cheapest way to Travel. And even cheaper if 2 - 4 people travel in it.
I used to travel London to Birmingham and back for £20 petrol- For 4 people on a train that was £140 - Plus costs from Train Station to destination. Now I have an Battery Electric Car I figured I spent 2.5 Hours travelling to Fulham and back (26 Miles) today . I topped up my Battery to level I started with for 80p. Tube costs for 2 People would have been £15.40. Electric cars are definitely to way to go in cities as they don't pollute, are quiet, and no congestion charge ( which they are planning to extend to the suburbs in London).