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50,000t about 44kt LCE I think (50m kg) roughly double but clearly a lot more from our JV area.
https://www1.hkexnews.hk/listedco/listconews/sehk/2022/0331/2022033100303.pdf
Any thoughts on what 50.000kt hydroxide phase one would do to that valuation and percentage though Obs? Could be multiples of that!
Interesting angle @Dallas. Personally think Ganfeng's offer for BCN, and the recent precedent selling our Yangibana JV to HAS sets a sale value of our small bit in the Sonora JV of £12-45m. I doubt we'd throw in the rest of the JV with that price tag, but anything is possible. Wouldn't surprise me to see a sale of sufficiently enough of Sonora to cover the 22% cost - the rest converted to royalty or some other derivative ownership, and if we don't take the 22% instead bringing in a partner, that would then pretty much immediately value our 27% at £24-30m in the eyes of the wider market, which me might decide to exit for at that time if it turns out investing in Sonora or elsewhere is preferable to investing in Amapa - either way, very much doubt the market will ignore that news - especially if the partner is well known. After the Q&A I was very happy to have added significantly last week after Kiran clarified a thing or two that was on my mind, and now looking forward to the MRE, PFS, 22%, Sonora and EMH playing out , not necessarily in that order, but hopefully in the next few months! :-)))
It'd only be profitable / bankable if I sold it.
We had a US30M NPV attributable to us under BCN's DFS, meant nothing to our sp though because we're an investment company.
Do you value your house at cost value or market value though? It makes no sense if you bought it 10 years ago and made a bunch of improvements. The recent transactions are proof of that.
I'll add it on then lol.
LT/LS is done, we own £1.8m in Evergreen shares.
Lol @EVB, "It really makes no sense to value the company based on book value on the balance sheet as of 6 months ago and then update the EMH price, totally ignore the £4m raised and the several million added with the HAS / Evergreen deals."
It's how the book value would look today, not 6 months ago, which is why EMH is mark to market and the private JV's are rough cost values. The £4M raised is split between the cost value attributed to Amapa and cash. I excluded LT/LS and HAS because we ain't got them yet ;-)
I expect it will only be what has been spent on it.
http://irservices.netbuilder.com/ir/cadence/newsArticle.php?ST=REM&id=861147
yes… but how much of the £22.15m net assets of the group at the end of the period is attributed to sonora…
Listen from 40:53 below. Pretty clear to me there is quite likely going to be significant upside to KDNC from the Sonora expansions that Ganfeng are planing. I don't think this is widely appreciated. But that's what makes a market I guess! ;-)
"Investor Presentation and Q&A with Cadence Minerals CEO, Kiran Morzaria" (1 Jul 2022)
https://www.youtube.com/watch?v=cu1u90A2BDA&t=2453s
===[
Kiran Morzaria, CEO of Cadence Minerals #KDNC answers investor questions including plans and forecasts for its two key projects Amapa and Sonora
00:00 Introduction
00:28 KDNC Investor Presentation
23:02 Cadence Minerals Q&A
]===
Ganfeng also have billions of dollars and are raking it in at current lithium prices, $50m is really nothing to them, they bought Bacanora out for a reason! They will obviously want the rest of it. 150 year resource life...
Everyone is free to value the company however they want. On Sonora, I personally think the Hastings transaction has set a precedent for a minimum value of our Sonora JV of £12m based on the "current" 17.5/35kt LCE plan at $11/kg. At a more realistic $22/kg this is £45m. But does anyone really think Ganfeng will not be able to produce a DFS to produce 50ktpa of Lithium Hydroxide, in phase 1? If we hold, and we appear to be at this stage, then that £12-45m should be worth significantly more to us when these plans become apparent as our JV will be required sooner and in greater volume.
https://www.reddit.com/r/CadenceMinerals/comments/vpr5w7/due_diligence_lsekdnc_cadence_minerals_asset/
It really makes no sense to value the company based on book value on the balance sheet as of 6 months ago and then update the EMH price, totally ignore the £4m raised and the several million added with the HAS / Evergreen deals.
Obs is the closest to realistic minimum at £37.5m.
https://www.reddit.com/r/CadenceMinerals/comments/vpr5w7/due_diligence_lsekdnc_cadence_minerals_asset/
daz… where did you get the cinovec £6m and sonora £3m values from…
how or why we are where we are?
God. Try and say that ten times really fast.
Tell the market that lol. And by the way it's a pessimistic view of how or why we are where we are.....not gospel. Even though it's pretty accurate ;-)
The assets are in Balance Sheet but the value at moment is the historical cost . We know now the current value so I think it correct to include.
Won't be on the balance sheet yet...so nil they are...today.
Dallasdaz. You should not give nil value to either HAS or Evergreen, HAS is £5.1m in HAS shares and Evergreen is £1.81m in shares. Total assets minimum £24m
Great to hear from Peter Ustinov, maddog and Nick this morning.
The most pessimistic valuation method to use as an investment company would be the balance sheet...i.e. LT/LS was 800k, HAS was 900k.
So..
EMH £6M
Amapa £6M
Sonora £3M
Cash £2M
Public Equity £0.5M
Deals with HAS and Evergreen won't be on the balance sheet yet.
Gives a figure of £17.5M or 9.87p. Pretty close to the current sp eh!
EMH -43%
Raise +£4m
HAS £905k -> £5.1m
LT/LS £803k -> £1.8m+
Amapa 0% -> 27%
+£4.2m for yangibana sale…
+£1.01min (£2.92max) for litchfield sale…
£22.15m + £5.21m = £27.36m min…
Yeah. Quite a bit has changed since 31st Dec though.