Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
I'm sure CT is well aware of the cash situation and will know the deal will need to be sorted well before '25. What this update says to me is that he won't be sold short by certain large Pharma's coming in with an offer which is derisory, he will have a figure in mind and won't go below that based on what XF 73 is worth.🥂🚀
Finally, at least as regards money, I see that the Mail on Sunday have alighted upon IDS for 2024. I reckon they are right. Their new sorting office, near Daventry, is the size of 30 football pitches. That rather puts Amazon in their place. Buy at 280p.
Critical Metals: 9.75p Target 25p Stop Loss 6p
At the start of 2023 shares of Critical Metals (CRTM) were very much on a high, boosted not only by the market’s enthusiasm for its flagship Molulu copper-cobalt project in the Democratic Republic of Congo, but also the dynamism of CEO Russell Fryer. Fast forward to October and the company said it entered into an offtake agreement with OM Metal & Resources SARL, for the sale of at least 20,000 tonnes of copper oxide ore. This month’s operational update underlined that the first ore sales are due by the end of Q1 2024. If you add in the sizzle from the latest 24-drill-hole campaign at Molulu, and the current share price vs 30p plus at the start of the year, CRTM not only seems the wrong price, but this is classic situation which underlines how short term traders have exited, just before the fundamental party is set to begin.
Rabbit Out Of A Hat
A category that played a big role in at least some of the winners of 2023 was the ability of a company to pull a rabbit out of a hat, wrongfooting a cynical / negative market by proving its worth. One could argue that Destiny Pharma (DEST) did this twice in the last year, the first time in July with the return of the former Chairman, and then on positive data regarding its flagship XF-73. Given ongoing stock market conditions, small caps will need to engage in rabbit pulling of Magic Circle proportions during the course of 2024.
It's a hang loose situation, news about the deal can come anytime this month🥂🥳
CleanTech Lithium: 19.75p Target 40p Stop Loss 14.5p
Given the way that nearly a fifth of all new cars are now electric, one would have thought that any stock even vaguely related to lithium would have been roaring. Clearly, this has not been the case, although it should be said that for the beginning of 2023, shares of CleanTech (CTL) were very much on the front foot, as the market celebrated the way that the company was mobilising its assets. Highlights at the time included a scoping study confirming the potential of the Laguna Verde project, as well as the announcement of a proposed listing on the ASX. However, concerns over jurisdiction risk in Chile pulled the rug from under the shares, even though CTL was effectively set up to be a plug and play in that country. Subsequently, none of the market’s fears regarding Chile’s plans for its lithium industry proved to be founded. As we go into 2024, with the over £8m raise to advance its projects, we should see the shares rebound off their recent lows, if only on the basis of the merit of Laguna Verde and Francisco Basin.
Evil Diaries: Webis To Catch The Wave:
I am sometimes criticised for featuring the chairman’s companies in this column. But I do not care provided I am confident that my comments are reasonable. Further, I know something of the world of horseracing and thus informed sufficiently to enable me to speak out.
This morning, the chairman’s Webis (WEB), still only capitalised at 1.5p or £6m, announced that its deal with Frank Stronach’s Monarch group of racecourses in the US is to be extended. The shares were .9p to 1.1p last night and are now 1.2p to 1.5p.
This is a speculation which is worth having a little bet on.
For decades the Americans have failed to get to grips with horserace betting with the result that all sorts of lunatics have dominated the legislative climate. The effect has been to cause cost and illegality to many of the citizens of the US. However, things are looking up and in a just world WEB will benefit. Trust me, I’m a gambler.
AJ Bell investment director Russ Mould remarked that the true test of whether Superdry is now a basket case would be if Mike Ashley-controlled Frasers (FRAS) takes a stake in the business.
‘The Sports Direct owner likes to make equity investments when rivals are in the gutter and Superdry certainly has enough wounds to qualify,’ said Mould.
‘Frasers rarely wants to buy a business outright, but it does like to build decent stakes so it can have influence on strategy and strike favourable distribution deals.
‘While Frasers is not currently on the shareholder register, it must surely be a matter of time if Superdry continues in its current direction. A selection of Superdry t-shirts and hoodies with Japanese writing are already being sold in Sports Direct and one could imagine the brand having a bigger presence in the future.’
Knowing GDR's history it'll be at a discount. Ceo threw us the titbits today hoping for a large increase in the sp so the raise at a discount wouldn't seem so bad, unfortunately those bags predicted by a few posters won't happen. Small steps Rodney...this time next year!⌚⌚⌚
You're talking hypothetically Roger, much as you want it to happen it stands to reason it won't. At the moment there are a lot of eggs in one basket, when the evaluation process finishes then a clearer picture will emerge. It's status quo for at least 6 months.