Member Info for antelope

So, let's just get this straight.

EMH's partner and joint owner of Geomet, which owns the Cinovec lithium rights, is CEZ, a very large and wealthy Czech utility with international operations that itself is 70% owned by the Czech Govt.

Whilst it's not yet sighed and sealed - that should happen next month - it's almost a certainty that CEZ are going to do a JV with Skoda (part of the VW group), which makes cars in the Czech Republic, to build a battery gigafactory there.

As CEZ are joint owners of Geomet, it's certain that this deal will lead to the first offtake agreement for Geomet.

VW have announced that they are going to build six (6!) gigafactories in Europe by 2030. One the first of these will be at Salzgitter in Germany, which is about 300km (190 miles) by road from the Cinovec mine.

Because Skoda are part of the VW group, it's highly likely that further offtake agreements will be reached to supply VW with Lithium Hydroxide as part of their supply chain of lithium hydroxide.

Even if EMH/Geomet double production to about 55ktpa, as has been mooted and which seems likely, VW would probably be able to take all that EMH/Geomet can produce.

We're based in a mining friendly area, with good local relations and good environmental (esg) credentials (underground mining and processing, Hydroxide processing in pre-existing facilities nearby, clean process). There are nearby road and rail facilities, and because CEZ is part govt owned, permit applications and authorisations will, whilst not necessarily being fast tracked (although that's possible), are assured.

We're operating one of the lowest cost hydroxide production mines in the world. We're the 4th largest hard rock resource in the world and by far the largest in Europe. And we're bang in the middle of Europe/s automotive industry and emerging battery industry.

We're funded right through to the decision to build, and EU funding is pretty much assured.

Hmmm.. sounds pretty good to me.

https://www.cnbc.com/2021/03/15/vw-to-ramp-up-battery-production-with-six-gigafactories-in-europe-.html

I wish people would get a few things clear in their heads... Tern is an investment company... and incubator... and as such it invests in startups, and incubates them... that is gets them to market. That takes money. In return for investing in the startup, Tern own a percentage of that startup. If the startup, which is unlikely to have cash reserves of its own, suddenly needs funds, it goes to Tern, and if Tern can't deliver, it goes to a myriad of other companies similar to Tern who do can lay their hands on the cash at short notice. So the other investing company invests, and Tern percentage holding falls. Without the ability to respond to such short term requests for cash from investees, Tern can only get smaller and smaller. Gettit? AS needs the ability to conduct placings, up to a fixed amount, until Tern sell an asset. Then all this is behind us. For now, he needs to be able to raise cash if asked by an investee.

Our issue is not that he needs to conduct placings, it's that he needs to conduct them at a far higher share price than has historically been the case - allowing the market to place a fiar commercial value on Tern. And he most certainly must not acquire any more investees until one is sold.

So our problem is not to block him from conducting placings, it's to force him to support the share price. As it happens, he, and Tim Metcalf, have stated that no placings are imminent. And AS has strongly implied, twice in RNSs, that no new investees will be acquired. Changing the motion to include a requirement that any placing be conducted at a fixed percentage discount to the mid price might be a way of doing this, along with a commitment to greater PR, like that webinar... the fact that there was a strong response to that webinar is evidence that the market is unaware of Tern's value.

If the Skoda arm of VW is using Cinovec Lithium - and it will be, because of the JV with CEZ who are effectively a supplier - does that open the door to offtake agreements with the rest of VW?

But they also have an interest in maximising the margin for Geomet. Hasn't KC go this covered in a clause somewhere?

stannum pecunia

Everything Boris says makes me laugh.

Ah now I understand the use of the word 'stannum'. (I had to google it... )

Of course. At least, I can't see why not.

Don't understand the question.

..it's like being tortured by midges.

I haven't researched it in depth, but I suspect CHF might be spreading themselves a bit thin, trying to run before they're walking. CMRS feels like a safer, simpler, more predictable and solid investment.

https://twitter.com/WyldNetworks/status/1395761009567150082?s=20

A million of these? Blimey.

I remain positive that something will kick off here. Eventually. I'm in a similar position with RDGC. Where I have almost as many as you have here.

Either point out that unless it's amended, it'll be rejected.. which would take coordination, or just vote no and then propose an amended version, which will also take coordination. Shame the TAG was so attacked really.

I wouldn't want to run Tern knowing that if an investee needed money, Tern could not provide it. We can stop the stupid NAV thing by amending the motion.

RIP. Well named.

Trouble is we can't know if DA will need cash. Or any other investee... TM is the most likely as it's the most recent acquisition.

What will make me short out and blow a fuse is if there's any attempt at another acquisition before we've disposed of something. But AS, in a recent RNS, has said he sees the portfolio now as being sufficient. ""We believe the Tern portfolio today is appropriately diversified across sectors and geographies, using technologies in novel and ground-breaking ways that are relevant and will be attractive to much larger enterprises who need new sources of revenue from state-of-the-art products and services. We are working hard to ensure that the value created is unlocked in time through third-party investments and ultimately the exit from our holdings.""

What dilution? Everyone is talking about a dilution as though there's one coming. The BoD have asked for the ability to raise should they have to. That is not the same as saying there's going to be one. You're right otherwise, but that problem is mitigated to some degree by putting a floor under the placing price, say 10% off the midprice.

As things are, let's assume that both Tim Metcalf and AS were correct in stating that no placing is coming. Then let's say two months down the line, Wyld say they have the chance of a massive contract, but need to recruit 15 people in order to fulfil it. There's a host of potential VCs they could go to for cash... all with cash in the bank. Tern have to conduct an EGM to get permission first. What do you think the implications are for the proportion of Wyld that we hold? Or DA? Or TM? Or InVMA? Or FVR?

The problem here is that AS has blown people's trust in him. Well that has to be managed... by controlling what price a placing can occur at. But I don't think it's realistic to stop an investment company from raising cash.

We know that the US is implementing a multi billion dollar program of ensuring security across all Government and commercial technical systems over the next six months. This is effectively an emergency type undertaking and is a vast project.

We know that Tern own 56.8% of Device Authority, whose Internet of Things security solution (Keyscaler) is the market leader and is recognised and recommended by many of the largest players in the IT sector, including those specifically operating in IT security.

So it's fair to assume that, at worst, DA will be winning a substantial amount of business over the next six months. And at the best, DA will become a hot target for a buyout, especially if Keyscaler emerges as a success, possibly best in breed (as Microsoft have described it) and is widely deployed.

It doesn't matter where the Tern share price lies in the meantime. The value will actualise when an asset sale occurs. And it's clear that the Biden initiative is a phenomenal opportunity for DA to shine and to come to the attention of every potential suitor out there. Tern is a Buy Recommendation in my book.