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Buying picking up. Nice chunks at 8p. About to move.
Could be time to buy. Short of stock perhaps. Bid rising on those early sells good sign..
Remember 10p paid last week. Getting closer to cut off date.
Morning All,
My platform put up the voting e-document yesterday in the Voting Mailbox under Portfolio. It wasn't apparent on the site, but they emailed me. So if you haven't already, I'd suggest checking your platforms to see if your voting doc is on there. All votes to be in by 20th October.
ATB
Calibre not calibration
L.
Loch Tay was their flagship project, but Erris shareprice has hovered aro7nd the 4-6p range for about a year and a half or more. Since well before loch Tay became one of their projects...
Eris has some very good people on board. Good calibration, financial well disciplined, and they’ve looked after the company bank balance very well.
A testament to this is the last cash call was done at 4.25p, and the price is still well above that. This latest cash call at 5p, and the sp is almost 50% above that. How many companies can achieve that?
It says a huge amount about the quality of the people, company and projects in my view
L.
The Loch Tay assets maybe had a value of 200-300k EUR at notice of acquisition of Zinnwald.
All other current assets includes Erris' other portfolio and their office space, equipment etc. This would be c. 2m EUR.
Whilst Loch Tay is one of Erris' important asset, it's still in very early stages of exploration. Unless more work is done to continue exploration and discover and define resources, this asset will not be valued correctly and will only be based upon the capital expenditure.
The problem was that Loch Ray was never valued correctly pre rto. So imo a rather smart move to enhance value. I believe eris gold will soon be re listed. And I do believe investors will flock into this next week. 15p is very achievable. Gla
yes... basically... if that’s what made up your £2m mcap pre-suspension... i had thought loch tay was your flagship asset that was attributing to the majority of the value... hence why it’s being delisted to be spun out in it’s own right later... whilst the other assets are going on care and maintenance...
Loch Tay asset value would be investment to date.
I.e. the amount of cash Erris has spent so far on the asset.
If they find resources, the value will go up accordingly to the amount of resources they find.
If they don't find any resources and the asset is a write off, then 0 value and no return on investment.
Err, the loch Tay asset is probably too early to assign any kind of value.
All we know is that they’re finding evidence e of a fair amount of surface mineralisation over a widish area, and that they are targeting 250k oz jorc compliant estimate in 4 years.
At present I’d probably go with zero till they publish more results from their ground magnetics, and soil sampling work..
They seem reasonably confident of finding something though. In geological terms, they’re pretty much right next door to the cononish mine of scotgold....
And surface mineralisation would tend to support the idea of decent subsurface mineralisation. They just got to be able to find it. And the nature of the landscape there means lots of legwork, which means a fair amount of time....
L.
i meant pre-divestment... the 1p is value of the cash only that is going with the asset... what about the value of the asset itself... or is that zero...
I don’t know what value is attributed to all of the assets.
I thin’ I read in one of Erris old reports that AbbeyTown had an asset value of something like £2 million ascribed to it. Not sure about the other gold assets in Europe though.
L.
Post egm,
Zinnwald will have 204 million shares in issue, with total cash:
€1 million Erris current bank
€1.35 million from Bacanora
€4.125 million from placing
Less €400k to EGR
Less placing costs
So roughly £5.5 million sterling, which is about 2.7p cash per new zinnwald share
Plus the 50% interest in the zinnwald lithium play
L.
you wouldn’t have the breakdown to hand would you...
Erris gold resources will have 38836787 shares in issue, plus €400k to kickstart loch Tay development, but initially as a private company.
On paper the shares will notionally therefore have a “cash” value of around 1p per shares roughly
L.
Nope,
Erris current valuation primarily based on:
A) AbbeyTown
B) Swedish and Norwegian gold projects
C) loch Tay 80% option earn in
D) cash in bank
L.
sorry... it’s gone up... 7.60p...
isn’t loch tay currently valued at c£2m 6.125p/share... based on it’s pre-suspension market value... zinnwald ipo £10.2m 5p/share... so up to the divestment... you’re buying 11.125p of assets... for what is it today... 7.35p...
I suspect part of the objective is to ensure European sources AND controlled/managed supply. So doubt it would be chinese. .
I am sure they will find.... and use ....whatever skills are needed. Gonna be an interesting ride to see what they can achieve themselves. But also relaxed about involving third parties if that helps ramp up faster without giving away too much of the cake.
Sorry if unclear... you have to take all the following and put together again as one link.
https://t.me/
joinchat/
SsO9Nhq8JVsxQ-euzMmWdA
Bring in a partner i.e. Chinese company to accelerate the project?
https://www.miningglobal.com/supply-chain-and-operations/global-lithium-demand-double-2024-driven-evs
Lazygun,
Yes ofcourse, the "swap" will be 1-1 based on their last day of dealing. But for simplicity, Erris have taken share price on announcement of suspension (6p) and have split this up between Zinnwald and Erris Gold Resources - taking 1p towards Erris Gold Resources so that the Zinnwald shares are in line with the placing price of 5p.
In the Acquisition Update RNS, Erris has valued these shares at 5p being the Placing Price.
But the actual price of these shares depends on what the market thinks and wants it to be. We will not know the actual price until 29th October, following which the market will price in assets, growth and potential of the company aswell as shares in issue.
But what i'm concerned about is how will Erris keep investors interested between now and 2024? By the sounds of things, it's just going to be cash raising until commissioning in 2023/2024.
Will they be keeping investors interested by providing the relevant bidding/engineering/procurement updates? (Though I don't see much value in doing this)
It's just very strange have one development asset associated with the company.. it's a risk as the whole company depends on that one asset..?
It’s a pretty good summary, though your first line should simply be a straight swap of eris shares for zinnwald shares on a 1 for 1 basis. There’s no price against them. In effect they’ll b3 at whatever the prevailing price of eris shares are on their last day of dealing....
Though, I guess there’s a good chance the price may drift towards the 5p placing level...
It’s a tricky one actually, because the significant shareholders probably won’t be selling their shares, and Bacanora can’t sell theirs, and I think the new sig shareholders also have some limits on how soon they can trade their shares (though I’m happy to be corrected on this one).
Most of the tradeable shares therefore are in effect going to be limited to the current free float in Erris shares, ( plus if I’m wrong about the 75 mln placing shares, those as well).
It may just be Henry maxey’s shares out of the placing that won’t be traded, but I need to check into that further, as I could be wrong.
But I rather suspect that the majority of the placing shares will likely be held at least for a while since those investors are here for TGE longer term lithium play developments.
L
So record date for divestment is 27th October with ex-divestment date being 29th October.
At this point, Erris will have issued:
- 38,836,787 shares in Zinnwald Lithium Plc to shareholders at 5p/share placing price (£1.9m)
- 38,836,787 (private company) shares in Erris Gold Resources to shareholders at 1p/share (£388k)
- 90,619,170 shares in Zinnwald Lithium Plc to Bacanora at 5p/share (£4.5m)
- 75,000,000 shares in Zinnwald Lithium Plc to "The Company", The directors, Allenby Capital and TPI at 5p/share (£3.75m)
Total:
204,455,957 shares in Zinnwald Lithium Plc at c. £10.2m
38,836,787 shares in Erris Gold Resources at £388k
Wonder what the actual market cap for the company will be as there's a lot of potential to grow.
The completion of this project and commissioning will take place in 2023, with ramp up production to take place in 2024. So a lot of fund raising between now and then it seems like.
How will management keep shareholders still interested between now and then since no return for shareholders until then..?
Timeline below for Zinnwald Lithium:
Q1 2021 – Q2 2021: EPC bidding process
Q2 2021: commence detail engineering
Q4 2021: commence long lead equipment procurement
Q1 2022: commence site preparation works
Q4 2023: commence commissioning
Q2 2024: ramp up
Look forward to opinions.