George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
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He really is so naive. Clearly never worked in the mining sector as I have for multiple decades !! PFG is the type who wants not just dates and times but a set out of meal breaks time and finish. Sad really.
Lol @Ando - nah lottery win is cold hard cash in hand!
I think it's just the consistent disappointment here over the years that has coloured my thinking - LTHs here will tell you back in the day I was extremely bullish, at times it felt like I was one of only 2 or 3 people posting. But the previous CEO was pretty awful and damaged the company to the state that we haven't even recovered to where we were 2/3 yrs ago - and we're further along now.
I think I reflect the wider market thinking at the moment and it's a case of do not say. I'm also not talking a 5m long book (anymore) like yourself, so I understand you're a glass full and overflowing view, haha.
Hopefully, we'll both be happy sometime later this year...
Good morning Paul,
Glass still half empty i see...haha
if you won the Euromillions you would be gutted because you were one of two winners and moan that you had to share the £150M.....haha
Have a nice day buddy
Excellent......i actually thought it might be a knee jerk reaction from LB and sign off....wishful thinking.
Thanks to Greg and the comms. team, good to see the company reverting back to the excellent communication we saw previous to "investment potential".
this will increase both our resource landmass and our sellable product and do the math just on those 2 additional income streams per week and its great news....HR will need to start recruiting for the sorting/bagging plant.
Good Luck all......
The good point for me is they've actually stated their intentions - negative, no real dates ( and maybe that's difficult) but I would have preferred less woolly and more concrete pin-it-to-the-post datelines. Again I appreciate exactly what I would have wanted is difficult but after months of nothing I had hoped for a 'little' more.
Aside from that, actually it doesn't matter, the big news we're waiting for is the JV signed agreement which may or may not be delivered in less than 60 days -depending on your interpretation.
SO for me no change - I'd hope they'd issue an RNS on the start /completion of each of the activity listed in the RNS - specifically the drilling though if they're engaging the GSMB for this I expect it'll be a long and protracted process from operation commencement to drill results - considering that process has taken nearly a year in the past.
Good RNS update as promised. Hopefully, things are now starting to move quickly
Heres my 2p worth -
why wouldnt you pay £80m - £100M for 50% of this asset.
you then use amortization of that £100M and depreciate the asset over 10 years. the income from this is potentially £700M over ten years and you have 50% of that, if you go deeper depths (X4 is possible) then you may well be holding 50% of an asset that is conservatively going to output £2.5BILLION over those ten years..............for a measly £10M per year....absolute no brainer, Sheffield have the backing of markets and banks because of their latest success, LB dont need banks.lol...........but in the real worls its F. ALL to pay for a potentially massive income..........again, no brainer for me.........
The interview yesterday was incredibly bullish. Like he said, can’t see anyone selling up now at this stage, at least not anyone who sees the potential anyway. If either of these parties conclude a deal it’s game on. From this cap .. it could be an EUA 2019/2020 moment
From RNS:
The conditions to the Project Funding include, inter alia, completion of satisfactory technical, tax, commercial and legal due diligence over a 60-day period during which time either Sheffield or LB Group may conclude a funding transaction with the Company.
“FUNDING TRANSACTION”
From section titled, LB Group
Discussions have continued positively with LB Group in parallel with Sheffield, albeit more slowly than the Company would have liked. The Board considered it was in the best interests of all stakeholders to entertain an alternative offer of funding which could either be complementary to a transaction with LB Group or stand on its own. LB Group has therefore been offered co-exclusivity with Sheffield for 60 days to conclude a funding transaction with the Company substantially on the same terms as the Memorandum of Understanding announced on 9 May 2023 ("MoU").
“…COULD EITHER BE COMPLEMENTARY TO A TRANSACTION WITH LB GROUP OR STAND ON ITS OWN.”
My thinking is that LB Group still want the product but perhaps didn’t want to front up the level of capex required. Some Aussie mates in a successful resources company have a bit of cash and could help stump up some of the capex and invest in the company.
I also think that this provides Capital with a bit more protection from potential aggressive moves by LB in the future.
If they could do something like a 50/50 equity between LB and Sheffield for 50% of the project for linked to a more favourable offtake agreement with LB, I think we might see the growth we’ve been hoping for what feels like a lifetime. An upgrade in resource obviously can’t be a bad thing either.
My thoughts only
Interpretation and opinion is what makes a market @justone, I'll be more than happy if your interpretation is correct.
I read it differently PaulFG. I read into this that both sides have to make an offer within 60 days, which includes all the funding element, to potentially earn 50% of the company. The best offer will be picked, as the RNS states, conclude a transaction. So it will be one of the two is my reading of it. Some numbers will have been banded around when they did the raise with Sheffield for the 10%. Anyway we will find out soon enough.
I can see this creeping up to around 8p solely on speculation. Have been waiting a long time. This was 20million mcap when it first listed at 20p.
Why these 2 companies have exclusivity period ?
Does that mean any other interested parties also there ?
@JUSTONE as i read it two companies have a 60 exclusivity to close the deal. That's all, not that they must close the deal in within 60 days but that's when their exclusivity expires and then other parties can enter negotiations.
SEBO.....did I not tell you already???
On or before 20th April. Its a done deal
I would agree an RNS is best, but the MM’s will adjust the buying price when it is released. So buy now and risk it, or wait. Personally I think it will now happen, and we have the 60 day deadline. I don’t understand your point about ‘after which the rest of the market has access PaulFG. I read it that one of the two will seal the deal. I liked that Greg talked about getting a new licence and was continuing to expand our resource, even if we are going to be sharing 50% of it! Compared to this time last year, happy days!
Agreed @Sebo and given the years of being unable to deliver here, if it even is on anyone's radar now, they will not buy in anticipation - it's not a big enough deal anyway to justify the risk reward.
I prefer a concrete RNS with the deal, funding and offtake all sorted...the big rerate that we all want can only come after that.
Yeah @justone - they have exclusivity for 60 days to conclude the deal, after which the rest of the market has access ( whoever that be...) but it doesn't mean the deal will be concluded within 60 days. I mean after Greg's words on LB concluding before year end, last year, I'm inclined to wait until the signing and not anticipate.
They have updated the investor relation with this news. Promising !!!
https://www.sheffieldresources.com.au/site/content/
Pursuant to the Sheffield Investment, Capital Metals has granted Sheffield co-exclusivity with LB Group (002601:SHENZHEN) for either party to conclude a transaction within 60 days to provide funding to support the development of the Project into production in exchange for up to a 50% interest in the Project.
This is what it says PaulFG. This sounds fairly definitive, so I am sticking to my optimism. We have both been here a long time. I have put another 2k in to back it up.
@justone - as always with CMET the devil is in the detail and important to remember the 60 day countdown is just the exclusivity period not necessarily that they'll actually conclude a deal within.
I think I've been here too long and err on pessimism....
With the Sheffield deal in the bag, I think investors might be a bit more optimistic and anticipate a deal, rather than wait for the RNS. We are all jaundiced about the history, but there is enough evidence now to feel optimistic!
100% agree
I don't envisage a meaningful, sustainable rerate until they announce they've signed the offtake/financing agreement - too many false dawns here, for whatever reason. Therefore, I'd expect us to continue to trade around where we are, with a possible slight downward drifting bias.
Will be interested to hear about drilling objectives, timescales and targets in the update this week as you all know I've be droning on and on about this for ages.