Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Cheers Miro ,this is great news indeed, off takers next....
Thanks Miro, looks like our mails crossed!
Heir; three things. 1/ RNS deals with what happens if EMH share price crashes during loans period and CEZ want to convert loan into shares.....limited to 29.9%. 2/ The RNS talks of CEZ having the opportunity to participate in any further new equity and / or debt financing of the Company; perfect, it is what a strategic partner is all about. KC is on record as saying they could become the largest shareholder. 3/ Politics; Babis plays fast and loose and has dug himself a large hole by cancelling the MOU. By stating he now has the ability to get this ‘back under state control’ he wants to be seen to be the hero. I’m sure KC has it all planned out in principal and over time this rhetoric will be watered down and ‘control’ and ‘majority’ will become ‘biggest’. Don’t forget that our PFS had been undertaken using less than 10% of the known deposit...... CEZ can take 100% of 10% of Cinovec and run their own operation as long as the mining permit also allows us to have our own mine as well. (Ps, CEZ should be able to get us a mining permit quickly. That would show strength in the partnership early and what might that do to the sp)
May the politicians keep tweeting their support for the project and may our partner demonstrate how they can help us speed this up..... both will help the sp.
SID, Miro has confirmed to me that the translation is correct.
Sid do not worry about exact translation, the point is Czech Government gives us green light. CEZ is in to check the project and push it now as fast as possible. As they informed this should go till the end of this year and then they will decide on next steps.
EMH tweeted babis tweet so to me it means KC is fully understanding of what babis daid in his tweets and posts them himself so why do that if not good for EMH ,I suspect translation is a bit crap, wherrs Miro? Need Czech speaker to give true translation
Heid. I don’t see your question as a negative has a Czech partner on board is the right move from every angle and what EMH has wanted all along
From the rns below the extra stake would come through additional investment
“The successful outcome of the due diligence process could see CEZ become European Metals' largest shareholder and co-development partner for the Cinovec Lithium/Tin Project through conversion of the convertible note and subsequent additional investment.”
Whilst it is positive Babis appears to be on board now that Czech involvement is now almost certainly a given I would rather trust what’s in the rns than what Babis has tweeted given his thoughts on the project over the last 18 months
I’m not saying it won’t happen but I just can’t see Keith giving overall control to another party unless a spectacular offer comes along.
Honcho. Good to see someone thinking outside the box.
M&A is becoming a very common point as material assets are aquired by Countries / Global Majors.
I might suggest this is part ONE of TWO or THREE parts.
CEZ finally getting a deal with KC and EMH is part one.
Think about the process going on here. Now CEZ are to take a stake holding , part TWO & THREE will involve CEZ at the table too @@
Going to be bloody huge. CEZ $12B company. I wonder who can sit a a table with the MAJOR players ? Pay at the door now to get in and no trainers.
Dvsfm, I appreciate the difference between the RNS and the tweet, but it was the contradiction between the two that I was questioning.
Additionally, something in the RNS is at odds, not that I am saying your maths is wide of the mark, as I also make out that a £2 million CLN at circa .24 euros a share comes out at circa 8+ million shares if converted, but that raises a question of how CEZ would become the largest shareholder purely through that, as to do so would take circa 28 million shares (as KDNC have circa 19% of a current 147 million shares in issue).
And in response to your point regarding the tweet, it clearly stated “the option to purchase a majority stake” in EMH, a literal translation of “majority” to be in excess of 50% (there is no other way to define “majority” that I am aware of), and they themselves state the wording “be under control of the state”, a control that they cannot have without being the majority owner.
And given that they mention having acquired the “option” (note, not the opportunity) to purchase this controlling stake then by definition “option” indicates that an agreement to do so has at the very least been tacitly received.
You may see my question as being arguably negative, whereas on the contrary, the question is to highlight a potentially positive aspect.
That aspect being, based on the utilisation of “majority”and “option”, that perhaps a deal (perhaps only tacitly, and yet to be ratified) has been struck to sell a majority of the company holding the resource to CEZ, for a reasonably large sum of money, with the balance still being held with EMH for recurring annual dividends/royalty/profit.
EMH shareholders then getting a large one off dividend payout (minus the value that EMH would have to pony up as the minority interest for their share of the development costs) when the majority of the resource holding company is sold to CEZ, and then benefitting annually with further dividends once the mine is in production.
I am not saying that this is what is going down in the background, I am merely postulating whether this may potentially be the case given some of the terminology that has been utilised.
IMHO only, you understand.
Heid, you're mixing the tweet and the RNS , they should be taken in isolation
the conversion of shares relates to the 2 million euro loan , so at the price of 0.24 euros per share it could be converted to 8,228,645 shares , more if the price is lower than 0.24 euros, which seems unlikely now, but you never know
The tweet regarding a "majority" stake would be after due diligence and would be subject to further investment.
I think the "translated" wording of the tweet should be balanced against the RNS from EMH which says
The successful outcome of the due diligence process could see CEZ become European Metals' largest shareholder and co-development partner
This could be as little as a 20% stake as our largest current shareholder KDNC has 19% , so doubt Keith would contemplate giving overall control to a partner unless made an offer he couldn't refuse
I read it to mean once they cross the 30% barrier they will not be obliged to make a full bid.
Can someone please explain how the “the option to purchase a majority stake in the Australian Company EMH” in the following statement aligns with the “will not hold a stake in the company that would require CEZ to make a mandatory offer” fro the RNS statement ?
The utilisation of the phrase “a majority stake” is indicative of in excess of 50%, but I always thought that if an entity owned 30% or greater of a company’s stock then it was mandatory to make an offer for the company.
More than happy for anyone qualified, or more knowledgeable on company law, to point out the error in my current understanding.
Many thanks.
“If it turns out that the extraction of lithium on the Cínovci is promising, it will again be under the control Of the state ?? S @KarelHavlicek_ and @SkupinaCEZ WE agree that CEZ acquires the option to purchase a majority stake in the Australian company EMH, which is through geomet holder of rights to exploration of lithium mining."
“The number of conversion shares will be limited such that, inter alia, CEZ will not as a result hold a stake in the Company that would require CEZ to make a mandatory offer for the entire issued share capital of the Company or otherwise require the Company to seek shareholder approval for the purposes of the Australian Securities Exchange Listing Rule 7.1.”
After having checked the graphs, I had completely forgotten it took a couple of years to achieve that!
PS Hello again Robin....I recall some fond days chatting years ago. Arguably we both ramped this share from 6p to 84p in what seemed like a blur of days....
I am considering coming back. I made a nice 5-figure profit from that early trade! Nice fundamentals but still a few unknowns for me as I have not paid much attention to Lithium this year.
Great seeing you back Robin. Don't keep apologising for 'ramping' - you more than proved yourself even-handed by exiting loudly when you no longer thought the company was doing best by investors. Nobody can accuse you of deliberate blindness.
Lenigas knows this space better than most and as he's just said, 'Now it all makes sense. Czech's CEZ is building lithium ion battery plants. Todays EMH:LN news is transformational for them'.
Simon very well said. Going to go great from here.
Let's get this straight. CEZ are doing due diligence, subsequent to which they will offer extremely significant funding to the project (Bacanora investors know better than most how significant this is!) in exchange for enough shares to become the largest shareholder.
This means they can tell the electorate that the state is benefitting from the project and influencing/controlling it (environmental concerns are huge in CZ).
And for the rest of us, it means the true scale of Cinovec can be realised, which is on a wholly different scale to where we are now, and come to think of it is distinctly main-market rather than AIM.
So not only are the political concerns dealt with, the next question which would be around funding (again, look to BCN!) will be sorted too.
Of course this means printing shares and trolls will be here trying to scare people off. But this is the only way to unlock the vast resources here. Nobody makes any money if they don't get sufficient investment to unlock the asset, and 'investment' generally means giving equity in exchange for funds.
I added shares here this morning and could not be more excited for the next few months as this new state-friendly narrative plays out. Look to see Babis' HNW friends getting involved too, including buying shares on the open market. Now that he's on-side, there'll be a sustained effort to accelerate the project (watch the permits come in) and to accelerate the share price (Babis will be Babis...).
I wonder if our old Czech troll poster is still watching...
KC has tweeted on EMH about this morning RNS
"We are fulfilling the key task of not losing the critical raw material, not breaking the relationship with foreign investors and guaranteeing a process that meets the strictest ecological criteria. Together with CEZem, we will now evaluate how to use lithium for the purpose of battery production."
"If it turns out that the extraction of lithium on the Cínovci is promising, it will again be under the control Of the state ?? S @KarelHavlicek_ and @SkupinaCEZ WE agree that CEZ acquires the option to purchase a majority stake in the Australian company EMH, which is through geomet holder of rights to exploration of lithium mining."
Sid. I would DEFINATELY NOT be selling.
That shanty .... We are not even out of the port area !!!
20p recommended this. First multiple in sight @@ chuckle sellers on 10-20% , they have ZERO idea whats coming
try one more sid , you have mentioned them
two off takers signed up of that magnitude would smash the sh@t out of the sp lol
https://twitter.com/CzechLithium/status/1151045704212766720
https://twitter.com/CzechLithium/status/1151045342533750784
We will be able to produce both yes sid , but our preferred is hydroxide at a greater value , Better off making $10,000 profit per tonne than $7 or 8,000 a tonne . Our hydroxide is of the right quality for both VW and Tesla , and Tesla still haven't made their decision about which European country , which I think they would have been waiting for this to make their final decision . Business sense says be close to both the supply and the customer .
Fingers??? Tesla may be the company interested in our product but arent we thinking of producing Carbonate first then hydroxide?( as per requirments of possible OFF TAKER?) and Tesla only use Hydroxide as far as im aware. It points else where but WTFDIK I wasnt present at the visit lol