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Here's a starter for ten.....
#1 EMH Country Risk much lower, Prem = Zimbabwe, Mozambique and Ethiopia!
#2 EU grants / subsidies / soft loans
#3 location near 30+ battery factories
#4 Multi Billion $ mining partner CEZ
#5 Resource easily upgraded with magnetic separation
#6 Tin credits substantially lower the cost
#7 Quality board & CEO
#8 CEZ building their own gigafactory in country (likely to partner with VW/Skoda)
#9 Strong support from institutional investors
#10 One of the first Li producers to market in Europe
When SMS group took on the Cinovec project on behalf of Geomet (49% owned by EMH 51% owned by CEZ) they stated a "14 months timescale" for completing the "Front-end Engineering Design" (FEED) an obvious critical part of the dfs - that was back in November 2020 so very much nearing completion!
In addition, Bara Consulting were appointed mid 2021(July) to assist in the DFS study and their work as per the updated PFS RNS dated19/1/2022 identified the backfilling potential of the Cinovec mine specifically changing the planned mining method for the Cinovec orebody from open stoping to longhole stoping with backfill using paste backfill.
As a result of the FEED updates and the longshore stoping Geomet benefit in increases to the Cinovec mine's proposed ore extraction from 34.5mt up to 54.5mt, enabling an increase in the annual processing rate by approximately 33% per annum over the previous 21-year life of mine, from 1.69mtpa to 2.25mtpa over a now 25-year life of mine. (16% INCREASE IN PRODUCTION TO 29,386TPA)
The PFS update is not only highlight obvious increased metal prices - reading between the lines the ongoing DFS studies are included with the increase in production and better ESG credentials.....And this is only phase 1 representing less than 10% of the total resource .......expecting many more phases(increases to production) to come on stream where valuations will be well over 15 times current mcap! One off-take could easily take current annual production in its entirety (CEZ/VW)
Lets hope CEZ allow us to be part of the end journey....but either way we are several multiples the current s/p values!
No brainer!
Yes, around 11 mins onwards
https://youtu.be/PvBHJaD-QLE
Were Rock Stocks theorising double production?
Rock Stocks most recent valuation was AUD$4.67 (£2.46) to a 'blue sky' AUD$7.64 (£4.03).
£10.91 seems a bit keen.
That's total rubbish. That statement indicates that the entire EV market will be saturated in ten years. Catch yourself on.
I have to agree Malik, also BHL seems crazy in comparison to this, EMH, KDNC and ATM are very undervalued currently compared to the "hype" stocks.
Incorrect redwood industries recycle Tesla batts it says about a decades time full circular economy for lith
I'm a moron for pointing out your statement holds no value? That's interesting. Maybe I shouldn't point out that statement also holds no value........
Defeat? Sorry, in the bin with you, moron.
Prompted by the various methods for valuations posted here and reading https://masterinvestor.co.uk/latest/how-to-value-junior-mining-stocks/amp/, I've created a series of pricing models to help understand what is a fair price and where EMH might go from here. You can download the Excel spreadsheet and enter your own numbers here: https://docs.google.com/spreadsheets/d/1r-6z3lFXkRApw6m-3gNweQuKn0g7MsRh/edit?usp=sharing&ouid=115714781831026487296&rtpof=true&sd=true (Errors will be shown in Monte Carlo Simulation unless you have the Excel Add-In).
Topline conclusions:
1. EMH has settled at a fair price relative to a typical junior mining project (~10% NPV)
2. In the absence of announcements from EMH or CEZ, pricing indicates the market gives a 30-40% probability of construction
3. There is a conservative estimated upside potential of 7.5 times (£5.23) if Cinovec finishes construction and reaches nameplate capacity (at least 5 years from today)
4. If double capacity is announced, then 15.5 times (£10.91) upside potential from here
All of these are highly susceptible to the price of lithium, how expensive to shareholders the Capex raise is, and the relative valuation of Cinovec’s speciality chemical processing business.
Recycling doesn't even touch the sides. Accept defeat and move on.
Skelly, it was just an example of how the market for lithium is not standing still. Did I propose that recycling would meet all demand? No. Get your own thinking cap on "mate".
Phil, if every vehicle on the road needs a battery there's going to be a hell of a lot more lithium required than just that from recycling the batteries already out there. If every vehicle sold was a BEV starting from today, it would take 20 years before every vehicle on the road was an EV. And then you would need 80 million vehicle batteries recycled every year before you could get enough lithium to supply every new vehicle produced. Neither of which will be happening within the next 40 years.
I'm pretty sure iron ore is still mined to make new cars even though there are enough cars out there to recycle it for new ones.
Need to get your thinking cap on mate.
Sivad, I don't think we hit a structural deficit for lithium until late last year.
EMH when you see a stock like PREM at £65m you know how dysfunctional AIM is.
That’s half valuation of EMH which has >7Mt LCE resource, JV with Czech multi billion utility and an asset not in Zimbabwe but in CzechR. You want cheap lithium and quality buy EMH and Afritin Mining (stock where 1.1Mt LCE lithium resource discounted at zero in shares).
https://t.co/om1jYQkVpd
Online next year - 10,000 tonnes of Li batteries to be recycled. When are we actually going to be producing? Why the lack of haste, the market isn't going to be there forever.
Just heard on Irish radio that 39% of cars sold in January had some form of lithium battery . If this is a microcosm of Europe where's it all going to come from??
On Monday, spot prices were sitting at $US59,600.
https://www.news.com.au/finance/business/mining/global-lithium-shortage-leads-to-record-price-surge/news-story/dbcdef1f6955116a347f305887783046
Ukraine concerns continue to impact Market
Volkswagen does not see chip shortage ending this year -
https://www.reuters.com/business/autos-transportation/volkswagen-does-not-see-chip-shortage-ending-this-year-automobilwoche-2022-02-06/
SURELY THIS MUST BE TEACHING THEM ABOUT THE INPORTANCE OF LITHIUM SUPPLY !!!!!!!! Probably not Why is there so much stupidity in the world . LOL cant get uber eats to knock on door here to let us know out hot food is here B4 it goes cold . DERRRR
Apologies if this has been posted already. But here is the latest info on EMH from Keith Coughlan. He discusses off takes with VW at the Q&A segment at the end of the video. https://www.youtube.com/watch?v=sOg_UjWier8
Lithium Miners: A Stellar Long-Term Buying Opportunity Amidst A Market Correction??
https://seekingalpha.com/article/4484444-lithium-miners-a-stellar-buying-opportunity
There is also a significant amount of Tin in the ore making it more economical at lower grades.
Could the same happen in the EU ?
https://www.politico.com/news/2022/02/04/canada-china-lithium-michael-waltz-00005104
Well - it will unless the EU/EC get a grip on things and treat battery related resources as an EU resource not split as German (Zinnwald)/Czech (Cinovec) resources - a big test for EU/EC politicians and related businesses/[financial] institutions.
We are in the hands of [potentially greedy/ incompetent/corrupt] bureaucrats and that often does not bode well for the people of the UK/EU.
I live in hope that they do not mess up this [once in a life-time] opportunity. Perhaps the Chinese have a sufficient strangle-hold into the economic future of the West already to effect massive take-offs/take-overs - I hope my cynicism is not justifiable and the next few weeks prove to be what we here believe is what should be the result for this stock based on a solid mine development/production model for the next 10-20 years.