Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Remember as well that now we have sold 51% of Geomet, we have also handed over 51% of ongoing costs - drilling, engineering, permitting, legal etc etc. So hopefully tapping into 'sophisticated investors' and therefore issuing more and more shares will not occur until whatever decisions are made to finance the project capex.
Ant you may remember I said 51 % and told all you guys to get the price up , Blame the last seller last night for 21.8 p , had we closed at 24 or 23 there could have been less dilution , I was hoping a 25 % premium to a weeks Vwap . oh well we are now off and running and we can actually start counting those chickens .
Remember too that our partner not only has mining experience, but is a power company that wants to be a player in the storage market itself, and so knows it well. A two-in-one. Fantastic.
I think that’s an excellent point.CEZ will be wanting to point to a well made investment,quite apart from wishing to laud the success of the CZECH Cinovec national treasure.
“ Up till now it was in CEZ’s interests for EMH’s SP to be suppressed. Now it’s in their interests for Geomet’s (and therefore EMH’s) value/SP to be maximised.”
Indeed ctw, it can only go up from here!
GLA
Agreed this is great news. To keep it simple, three facts:
1) A €34m investment for 51% of Geomet gives it a value now of €66m or £57m, much more than our current MC.
2) We retain a 49% interest in a project with a NPV of $1.1Billion.
3) Up till now it was in CEZ’s interests for EMH’s SP to be suppressed. Now it’s in their interests for Geomet’s (and therefore EMH’s) value/SP to be maximised.
Yes,I agree with you.However,as far as the immediate reaction of the share price is concerned,The MMs know that we’re all long term holders now!Clearly,there’s a lot of speculative money which was originally attracted by the prospects of a bid at a fancy price and that hasn’t and won’t happen now.On any reasonable appraisal the shares should currently be trading up in the 30p plus area but the MMs know that they’ll be hot (or warmish ) money looking to exit.I’m happy to hold until stability returns to the stock..This isn’t a bad deal in the circumstances just not the one some punters had expected.I’m happy to hold.Why would I wish to sell out when a penny pinching Czech government are prepared to pay a good deal more than the current price for their interest.
Well I think this is great news. The share price will be volatile in the short term I suspect, but in the longer term EMH, undiluted, will now own 49% of the fourth largest non brine Li mine in the world, that's fully funded through to construction and will be proceeding. The project now has properly funded backing and negotiations with offtakers can proceed in earnest. I really don't think we could have hoped for more. However we ended up raising investment, we would have lost a degree of control. But the mine is now certainly proceeding and, for a tiddler, EMH owns nearly half of a phenomenal project. Only a few months ago we were worrying about ever owning anything.
yes newboy, indeed, completely different to asx reaction, can only see long term how it plays out, gla
There you go dvfsm nice increase to start the day...
Very true Degsie.. Its a hold for me.
The big plus is that the deal guarantees that Cinovec will proceed to the benefit of all parties. The political uncertaintity is ended.
Has no effect....
Mate what I say has effect on the SP, and this is 15% of my portfolio.. used to be a lot more.. I just think Keith has-been worn down, hardly surprising really.. no wonder Elon went with Germany, who would choose to deal with these people
Newboy. You looking to buy back in as you are certainly trying to talk down the deal
New boy, I remember Robin Hood and I ramping galore :) was my first 10-bag trade!
Well Babis got his way in the end, trash the SP and but it cheap,these people have being doing it for years, it's how they get do rich.... Anyone remember 80p where the Czech government first feigned an interest??
Anyone remember
EMH has 50% of an asset with a NPV of $1.108b and the uncertainty about the viability has been removed. Market cap of EMH does not change as CEZ is investing in Geomet. This is a win win deal for both EMH and CZE.
Looks like fantastic news to me, anyone who thinks this is anything other than is deluded!
The best possible partner the company could have hoped for
More than half EMH MCAP payment in cash
No dilution to emh shareholders
Fully funded via state backed partner
Mining licence now a given
Emh retain 50% (virtually) in a potentially multi billion pound project
Amazing news! No chance of funding the capex ourselves without massive massive dilution to emh holders so couldn’t have hoped for better!