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Ant, they just make everything more complex by increasing the number of people who have to be stroked. In the end, it will get done. I think the biggest issue for a lithium mine is its proximity to the cathode producers (assuming the mine does the refining). In China, you can refine the spodumene and dump the tailings into the closest landfill. As you know, that isn't the case in the EU. I suppose the main point of my post was to affirm those who are saying things are much more complicated that many may recognize. And I would be willing to bet that KC would get things done a lot faster if EMH was the 51% partner.
Jonesy64, you made me laugh today. Cornflakes!!
Even in the most optimistic scenarios where every single raw material project in the pipeline comes on stream and existing operations expand aggressively, there will not be enough raw material for the battery supply chain as we go into 2030;
https://www.mining.com/carmakers-will-need-to-become-miners-benchmark/
So WTF are Tesla , VW and others waiting for ? The Li fairy ? Just get the show on the road !!!!
On reflection Cornish lithium might be bit rich. But they are on a high speed path to production
EMH
The first of these was an update to the 2019 Preliminary Feasibility Study, highlighting significant increases in the key financial parameters of the Project, an increase in overall lithium production, and further enhancements to the ESG credentials. The 2022 PFS Update shows an NPV8 of US$1.938B (post tax); an up-front capital cost of US$644M; and an increase in the overall annual production of battery-grade lithium hydroxide to 29,386 tpa. In addition, the post-tax IRR has increased to 36.3% (refer to the Company's ASX release dated 19 January 2022) ( PFS Update delivers outstanding results ).
The quarter was marked by continued strong progress by the Company towards finalisation of the Definitive Feasibility Study (" DFS ") together with ongoing discussions with potential offtakers for the products of the Project. From a macro perspective, prices for the Project's two key products, lithium hydroxide and tin, continued to increase significantly with lithium hydroxide prices exceeding USD 70,000/tonne and tin exceeding USD45,000/tonne during the period. These prices compare very favourably to the prices that were used in the 2022 PFS Update being USD17,000 for lithium hydroxide and USD24,000 for tin.
At the current lithium price has a 7bn+ NPV - 123mil mcap and at a $40,000 lithium price will be generating 500mil+ Profit per annum from mid 2024
123 mil mcap - will have a 1.23bn mcap in 2024 - European battery alliance has agreed that Europe will Not be able to meet net 0 by 2030 without EMHs mine coming online, they have a 500bn green budget and EMH will likely benfit for the grants in negotionations but also have multiple paths to recieving funding, including it 51% 12bn major partner - its the largest lithium mine in all of the EU - the current price is a bargin while the Ukraine situation effects European miners
There will be no profits in 2024 because firstly production will start sometime in 2026 and secondly we will have most probably sold our 49% stake in Geomet by then. Stick to the CEZ timelines. There is no hidden agenda or mumbo jumbo stories.
Volvo becomes the latest automaker to warn about a scarcity of raw materials needed to make batteries. “'Batteries might be, let’s say, a continuous constraint for the growth of EVs over the next five to 10 years,' he said."
https://www.cnbc.com/2022/04/29/autos-ceo-warns-of-battery-supply-scarcity-as-ev-competition-heats-up.html
WiseI, nice positive take and summary.
I have been musing the issue of the 2022 PFS for some time, as that RNS came out the blue and was not high on the list of expectations of EMH shareholders back in January. It is only now that with the downtalk from CEZ on the timeline for the DFS, that I realize that KC may have outmaneuvered CEV (in particular) and any other potential suitors who may have thought they could acquire EMH on the cheap. KC has referenced on many occasions the buy out clause in our contract with CEZ, and when he speaks about this in interviews he always seems to have a glint in his eye. The strong indication is that the contract is not based on actual current value, but potential market value. So IMO the 'boss' was preempting delaying tactics by CEZ on the DFS and getting it out there and on paper this growing potential value based on current figures. He even under estimated the current figures to use in the PFS, again in my opinion for the reason of not being accused of being overoptimistic. For me this is a masterclass move as the two things it does is vastly increases the value of EMH in any takeover bid, and dissuades any such bid in the first place. Brilliant....GLA
Mick, “ The strong indication is that the contract is not based on actual current value” was not just an inkling but something he actually said. I just wish I could remember which interview it was.
Fingers explained the mechanism that would have to be followed to arrive at a price should a takeover bid be made and as I understand it any price would have to be based on potential market value. I think all we need to do as shareholders is sit back and wait.
https://auto.economictimes.indiatimes.com/videos/joe-lowry-talks-global-lithium-shortage/91230741
Volkswagen sells out of electric cars until 2023
https://www.afr.com/companies/transport/volkswagen-sells-out-of-electric-cars-until-2023-20220505-p5ainr
Hyundai Motor Group plans to invest USD 16.5 billion in S.Korea EV business
Read more at:
https://auto.economictimes.indiatimes.com/news/passenger-vehicle/cars/hyundai-motor-group-plans-to-invest-usd-16-5-billion-in-s-korea-ev-business/91634239
Nice overview
https://investingnews.com.au/european-metals-asx-emh
needs backing up with some proper news though. An offtake or 3 would do it..
This looks like a trnding lithium price .
https://hotcopper.com.au/threads/european-lithium-limited.6207283/page-1151?post_id=61511714
https://www.bnnbloomberg.ca/one-mine-auction-draws-3-448-bids-amid-scramble-for-lithium-1.1769399.amp.html
An auction for a controlling stake in a Chinese lithium mine has garnered 3,448 bids, underscoring the scramble to secure the battery metal that’s key to the clean-energy transition.
The heated bidding war, which concluded on Saturday, was joined by 21 participants, while over 980,000 people watched online throughout the five-day event.
“We believe the auction price indicates a bullish Chinese primary market for future lithium prices as well as the strategic importance of Sichuan spodumene assets,” Daiwa Capital Markets’ analysts Dennis Ip and Leo Ho said in a note.
https://www.politico.eu/article/central-europe-struggle-keep-up-electric-car-race/
Good read,
Again, all EU fingers pretty much point to czech rep.
Stay holding tight people
Czech government need to get their act together quickly then, or they will miss the boat!!!
wakey wakey Prague!!!
I agree that they need to get a move on Sid but the lithium isn't going to disappear, but could take much longer to come to fruition than necessary. So yes, wakey wakey Prague.
https://twitter.com/P_Fiala/status/1507016259170234370
I wander what tey have been talking about ????
https://twitter.com/Eurometaux/status/1528693382410817536
And I suspect : Develop and derisk sustainable domestic projects , they were talking about Cinovec
in renegotiating more variable-priced contracts with our lithium customers. Ohhhh if they would only tell the rest of the world what that is .
https://twitter.com/Thematicafunds/status/1528961861668024320
Maros was with SAV CEO talking about this a couple of weeks ago. Wonder if KC has had a call too?
https://www.linkedin.com/posts/david-archer-6a73697_savannahresources-eu-portugal-activity-6930543713026748417-DpJ8?utm_source=linkedin_share&utm_medium=android_app