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Options and remuneration can be a touchy subject but it's important. Good management can be key but how much do you / should you pay for them? After all, options are a transfer of the POTENTIAL UPSIDE held by existing shareholders to the recipient. Luckily, as shareholders, we get to vote on what we think.

This is the remuneration report from Atlantic's last annual report:

https://tinyurl.com/bdcv63ur

I dare say, that I think non-shareholders are also entitled to their opinions. However, to state the obvious, they don't get to decide by voting.

Hi LL,

You make a great point on Patriot - and well done to Patriot - but it just reminds me of how undervalued I believe Atlantic Lithium remains. Patriot's market cap is C$1.5b (£0.9b) and our market cap is about £250m!

LL,
I did some digging on the Ivory Coast Mining Cadastre website. It looks like African Gold's work is relevant for both Atlantic and Ricca shareholders. And you're right, our licenses appear to remain at application stage.
https://tinyurl.com/2p8vdpvr
But as NH has mentioned, the real focus of work is at Ewoyaa. And this is just a distraction until further news from Atlantic on their work in Ghana. But I will be watching African Gold's progress.
I'm hopeful for the MRE to be released either Monday or Tuesday next week. That would stick to NH's guidance. Fingers crossed.

Hi LL,
Thanks for your reply. I think you are correct on many of your points.
I have Ricca Resources from the spin out and simply have an interest because I can't sell them until they're listed. I always invested in IronRidge for the lithium. I assume little value but just perhaps they might have something interesting. The gold assets are certainly becoming more interesting as the gold price rises.
The FRG deal, I view as an option for Ricca. The splashy headlines are about an 'US$18m deal'. But it's an earn-in and if they don't find much worth pursuing then the US$18m will never get spent etc.
The photos from the ADZOPE tenement from 2016 show some interesting outcrops. So, if I wanted to go lithium exploring, why not punch a few drills in here and see what comes up. After all, the lithium market is one of the most interesting places to be right now and I think for the next few years.
Just maybe Ricca can find something. But you're right exploration is difficult and takes time hence why the market is in a supply imbalance.
I just find Ricca an interesting distraction while we wait for more news from ALL.

While we wait for Tesla's report after the US close tonight and Atlantic Lithium's MRE update, I read this news which I think is relevant for Ricca Resources holders (spin out from IronRidge):

https://tinyurl.com/bjb3ujh2

A comment on Pilbara Minerals results released this week:
https://tinyurl.com/bjb3ujh2

Another great interview / presentation from NH and things seem to be lining up nicely.

Interesting to hear about the timeline for ministerial approval of the mining license expected next quarter and parliamentary ratification of the mining license and other licenses expected towards the end of the following quarter.

Also, interesting to hear about the cutting edge technology to try and identify buried pegmatites. It's a large exploration package. If there are some additional buried lithium monsters, lets have 'em!

Here are a couple of interesting comments from Rio Tinto's 4Q production report released today:
https://tinyurl.com/bjb3ujh2

bonker99,
Good point about their last update. I went back to have a closer look at what they said:
https://tinyurl.com/mrx3aa5v

This interview with Piedmont's CEO Keith Phillips is worth a watch. Atlantic mentioned around 4 minutes 30 secs

https://tinyurl.com/bjb3ujh2

I like how he says "That's a fantastic asset" when talking about Atlantic.

They should have started a soil sampling programme by now. This is what they said in the last news release:
https://tinyurl.com/yc7ckjb4
Maybe they give an update on progress at some stage. It's a large area. 10km by 5km.

I went to the supermarket today and saw this:

https://tinyurl.com/hrjy8cfv

It reminded me of the old Solgold gang.

Happy Friday everyone!

This is worth a read...

https://tinyurl.com/bjb3ujh2

DFS hasn't been released yet.

You bring up an interesting topic Goolang!

Life of Mine revenues for Ewoyaa are US$4.85bln according to the PFS (see page 8 on this link) and this is based on a Spodumene concentrate price of US$1,359/t.

https://www.rns-pdf.londonstockexchange.com/rns/2798A_1-2022-9-22.pdf

The recent Pilbara Minerals BMX auction SPOT price dropped -3.2% recently to US$8,299/t for 6% Spodumene concentrate. This is roughly 6.1 times higher than the price used in the PFS.

As a rough calculation, Life of Mine revenues using the recent BMX spot auction price would be approximately US$4.85bln * 6.1 = US$29.5billion. (This is not perfect because of the by products but I'm not sure of current spot prices for fines and feldspar - but it gives a ball park figure)

Perhaps the market hasn't fully understood the impact of spot prices for lithium concentrate on Atlantic Lithium's Ewoyaa project?

And since the C1 CASH COSTS NET OF BY PRODUCTS are estimated at only US$278/t. (see PFS page 8). These are software type margins as Elon Musk recently described the lithium business. Not bad for a company with a market cap. of approximately £206mln, or US$250million if we convert to US dollars.

Spot prices of spodumene concentrate (6%) have dipped -3.2% based on the last Pilbara auction to US$8,299/t.

But Pilbara recently announced that price reviews for the off take customers resulted in IMPROVED pricing outcomes equal to an average 6.0% equivalent price of US$6,300/t. Back in Pilbara's September 2022 report the reference price was only US$4,813/t which is why Pilbara describe the recent pricing as IMPROVED, since the contract prices have jumped 31%!

It's important to understand the difference between spot prices and longer term contract prices. The contract prices LAG behind the spot market. The spot market is currently pulling the contract prices higher as pricing reviews take place!

DG1,

If the Ghana Sovereign Wealth Fund decided against investing for some reason (which I think unlikely) then Atlantic could look to secure a PREPAYMENT deal, which would avoid any equity issuance altogether. As you mention, Atlantic's 50% of concentrate production has not been signed up for off take.

European Lithium signed an off take agreement this week with BMW and received a US$15mln PREPAYMENT which is paid back on delivery of lithium hydroxide starting 2026.

https://wcsecure.weblink.com.au/pdf/EUR/02615350.pdf

European Lithium plans to start an underground mine in Austria, with a grade of approximately 1.0%. The plant requires flotation which Ewoyaa doesn't. They also plan to build a hydroxide plant and capex estimates for their mine and hydroxide plant are currently over US$500mln.

Atlantic have a partner (Piedmont) who finance most of the capex spend and we could then take a PREPAYMENT to fund any further plant build. No wonder Neil Herbert looks so relaxed when he talks about financing!

Swest,
I understand the frustration. It's been a tough week for most lithium shares. After Pilbara's auction the bears seem to have gone on the offensive, simply because the lithium price was lower than the previous auction. Check out Pilbara Minerals share price action the last few days. The thing is Pilbara Minerals cash increased A$783.7mln last quarter, based on average realised sales prices of US$4,813/t for 6% con. If the BMX auction was 'only' US$8,299 / t (6.0%) this time then they'll still have an amazing 4Q!

This price chart puts things in perspective on the lithium price auction:
https://tinyurl.com/bjb3ujh2
The price has dipped -3.2% on the last auction but we had a similar dip in June 2022 and then look what happened!

Pilbara Minerals' BMX auction price is US$8,299/tonne of 6.0% spodumene concentrate.

https://1pls.irmau.com/site/pdf/df42a262-6eb0-437b-9e26-cfae210a997c/Results-of-BMX-Auction.pdf

This is -3.2% on the last auction. I'm not sure this is the lithium price collapse some brokers have suggested.

Atlantic's 50% share of production would be US$1.06BILLION at this price! LOL!

https://www.imf.org/en/News/Articles/2022/12/12/pr22427-imf-reaches-staff-level-agreement-on-a-3-billion-three-years-ecf-with-ghana