The latest Investing Matters Podcast episode with London Stock Exchange Group's Chris Mayo has just been released. Listen here.
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"A significant recent development is the strategic partnership with ASX-listed mineral sands developer Sheffield Resources. Sheffield has taken a 10% stake in Capital Metals with an option to increase to 14%, and is in discussions to potentially fund 50% of the project capex to earn a 50% interest in EMP. Sheffield's involvement provides a strong endorsement of the project and adds significant mineral sands development expertise. It also opens up the potential for an accelerated development timeline and expanded production scenario."
Uhm 4 mins in or so Greg is asked to clarify that Sheffield is ONLY funding 50% of development project.
Am I confused? But that was not my understanding, I thought it was 100%. SO now we need to raise 50% of the development funds?
Let’s hope for FOMO Friday. Will be 28th by Tuesday. Not many days left in May.
Can't be far off now, off the radar it seems...
We should be much much higher. I suppose that the market is waiting for sign-off? I hope so...
As Tim Booth once sang ‘silence is deafening’.
3 trades all day for one of the best prospects on AIM.
Go figure.
ATB
Orca is the North Sea oil right? With labour certain to get into power that probably won't go far. There must be a big reason for an £8M valuation.
PFG - okay, I guess it's irrelevant now anyway. Onwards and upwards with Sheffield, and hopefully an offtake deal with LB Group further down the line.
the market decides what the value is not us, not the ceo, not the bank manager......remember trading all started with tulip bulbs worth 10s of thousands of ££££.....worthless **** but people wanted them.......same here, same everywhere, the market will decide.
orca reported yet another stonking rns and its still lacklustre to say the least and that has over £30b , yes billion of assets under their licenced control......their mcap is about £8m...........the market has decided.
good luck all, and try to be nice to each other, we are all in this, nobody is shorting so if we cant be nice then dont be aggressive nor disrespectful to others.
ando
LW !!!
Please don't encourage this lot to descend down that rabbit hole! lol
Me too - much happier to be doing business with an ASX listed company. (Part of me wonders whether a Chinese entity was behind the licences getting suspended. It wouldn't have been a rogue minister and/or official acting alone, but would have been at the behest of a mineral sands player, whether domestic or foreign imho).
@DIbs - it could be that LB did not necessarily walked, but actually looking into the future CMET may have felt a little uncomfortable being tied so closely to the Chinese (I know I did). Sheffield for sure is in a different ballpark compared to LB, but if that's what's available and they can progress the project then we have to move on.
Interestingly Strandline has sold its Tanzania mineral sands to Shenghe Resources - another Chinese outfit.
I don’t agree with your conclusion that LB ‘chose not to invest’. We know their terms previously were to take a large slice of the company for their investment. We generally concluded that we didn’t want that to happen and seemingly the board took that view too.
I support the board’s approach and we just need a few more days to the end of the month and all will be in place.
Sheffield have already helped finance a mine, which had greater initial capital costs than CMET's. They are well capitalised and I don't think raising £35 million capex is going to be a problem for them. I also don't think they would take a 10% position in CMET and then not conclude the deal. My feeling is that CMET preferred to go with Sheffield than the LB Group, who were dragging.
https://x.com/BigBiteNow/status/1793226121011429855
The reason it’s not rocketing is because there is no Chinese money going in. It’s a relatively small Aussie producer that has taken a punt. They haven’t got that kind of money!
For me, the elephant in the room is after all that time and all that DD the Chinese chose not to invest. Why? Something didn’t add up for them. They’re smart cookies the Chinese. I wonder if their estimation of the capital costs and/or the payback were different to CMET’s?
It’s a blow to the credibility of the project that LB chose not to invest. But - even if they had - the dilution to CMET would’ve been massive. So it’s been a lose lose situation.
This is what the last RNS said:
"The co-exclusivity period will end on 15 May 2024 and Sheffield will be provided with exclusivity to conclude discussions and finalise the already-advanced legal documentation by the end of May 2024... Capital Metals and Sheffield are well advanced in the legal documentation and due diligence; however, the parties require a short period of time to finalise the agreements ("Agreements"), which the parties are targeting for completion at the end of May 2024."
I think if they were going to need more than a few weeks to conclude, they would have agreed a longer exclusivity extension. Sheffield have seen off the LB Group and can't see them not getting this over the finishing line. So I would expect an RNS in the coming days, most likely next week, but definitely by first week in June.
So I've added some more in expectation and will continue to do so in the run up to news. All imo and dyor
How ironic that somebody questions another person's intelligence whilst spelling 'lego' wrong.
What a muppet !
I was merely stating that a share which apparently is due to to rocket in the next 7 - 10 days had a massive 4 trades all day yesterday. The trade action was not sitting right with me, simple as.
If the JV is a 99% done deal then this share should be far more livelier in my opinion.
Not deramping in any way as I want this to multibag as much as other investors.
Go and play with your spelling books.
ATB.
'Not sitting right' ? What a pathetic statement from a market ignoramus. Go and play with your Leggo bricks.
Not sitting right lol. have a bit of patience chap, it’s been 7 days since they said it’s Sheffield and process might run over a little bit. I’m sure things are golden
"Not sitting right"? It was only last week they informed the narket that they expect the funding deal to be done by the end of the month. Not sure what people expect to have happened in the handful of trading days since that announcement lol
We assume that all is well. Social media update would be nice but I still feel deal confirmation will come next week at the latest.
"We are aiming to close the considerable delta between our market value and project NPV"
Didn't they say the same thing in Octobers presentation.
I guess the easiest way to do this is to get the JV signed but getting it over the line is appearing difficult, especially if it goes on beyond the end of May
Perhaps one of us should have attended the conference. JV deal needs inking then it's a big rerate from here. NPV minimum estimate is $160M - pre significant resource expansion. We should be sitting at £80M minimum.