Member Info for BorderBob

The difference in votes for Antonius and Strauss was 18.2 million. Robeco has 16.3 million shares. Someone at Robeco doesn’t like Strauss?

Insignificant difference between this and what was found in 2012.

"The estimate of inferred resources for the upper clay unit is 22,642,000 tonnes averaging
2,632 ppm Li (1.3% LCE). For the lower clay unit the inferred resource is estimated at
20,682,000 tonnes averaging 4,103 ppm Li (2.0% LCE). The inferred resource for both the upper
and lower clay units is estimated to total 43,324,000 tonnes averaging 3,005 ppm Li (1.6% LCE)
or 712,000 tonnes LCE

https://www.bacanoralithium.com/pdfs/NI-43-101-Report-on-Sonora-Lithium-Deposit.pdf

Since Jamie Strauss was the least popular director up for election, I had to check out his profile on LinkedIn. It seems he is sort of a professional “if you need an outside director I know something about mining,” but he doesn’t update his cv too often. The entry for Bacanora mentions Hanwa but not Ganfeng.

https://uk.linkedin.com/in/jamiestrauss

Since no one else has mentioned it, the rules of the takeover game change on July 5. If that were not the case, I would not be surprised if Ganfeng asked for another extension, based on awaiting Chinese government approval, the timing of which they can manipulate. But it is probably to their advantage to operate under the old takeover rules, rather than the new ones – if only because the old and familiar is generally safer.

https://www.bakermckenzie.com/en/insight/publications/2021/04/takeover-panel-confirms-major-changes-timetable

- Was this due to happen regardless. YES. They are a minority shareholder with only one seat on the Board.

- Or is it an indication of them likely accepting this current offer and were just trying to get money out of Zinnwald so that Ganfeng Lithium would get less for the same offer? NO. They now own less of a slice of a larger pie. BCN shareholders would have something to complain about, had they not protected the investment in case Ganfeng doesn't come through with an offer that is accepted.

Add 8-9pp to the shown ratio, or subtract it? Could you show your work? What are you using for production costs? I would be reluctant to compare rock mining, with known costs and quality infrastructure, with clay extraction, with unproven technology out in the middle of nowhere. But I think what you are finding is that BCN may be worth £1 per share, if all the lithium could be sold today, and that suggests to me that discounted to present value, Ganfeng knows what it's buying.

@mrcautious Theranos is the exception that proves the rule – but for purposes of this discussion, it was founded in 2003 and did not go public on NASDAQ until 2013, when it had a valuation of $9 billion or so. In 2014 it partnered with Walgreens, which the same year bought out Boots. The fraud wasn’t revealed until 2015.

I bought BCN before the Ganfeng takeover announcement, so you are missing with your stab in the dark about my motive of getting a nice quick flip. Although that might be the reason I haven’t sold, and might buy more shares if it looks possible the deal will go through.

Lord Callanan, the former MEP, apparently befuddled by the difference between “rare earth” and lithium, wrote the response:

Mergers and takeovers are primarily commercial matters for the parties involved. The Government has powers under the Enterprise Act 2002 to intervene in transactions which raise national security concerns. The Government has recently strengthened those powers through the National Security and Investment Act 2021.

The Government is aware of this proposed transaction and is monitoring developments closely.

The Government recognises the strategic importance of securing the UK’s access to lithium supplies and is supporting the domestic extraction of critical “rare earth” materials, including lithium. For example, we are part funding Cornish Lithium and Geothermal Engineering to build a zero carbon, lithium extraction pilot plant at an existing site in Cornwall through the Government’s Get Building Fund.

https://questions-statements.parliament.uk/written-questions/detail/2021-06-10/hl1006#

Oddly enough, Zinnwald is having its AGM at the same place three days earlier, and has not announced any restrictions on attendance (although they probably should).

@ Strangerstill “The last price I saw for Lithium Carbonate was 13,500$ per tonne, way above the value used in the feasibility study”

From the 2018 feasibility study:

“The Sonora Project will produce Battery Grade lithium carbonate. For the purposes of the FS, Bacanora has chosen to apply a price of $11,000 which represents a material discount to the spot prices in Q4, 2017 of $12,000 to $20,000 per tonne.”

So it depends on your definition of “way above” – I’m sure that’s a technical term in the lithium industry; how much production costs will have risen from 2018 to 2023; and whether the price will stay where it is or return to 2019-20 lows.

Also depends on the takeoff price guaranteed to Ganfeng and the Japanese. I haven't seen that contract.

Still say it's both a wedding (for BCN and Ganfeng) and a funeral (for the wishes of those who were riding them like horses), so the 30-person limit should not apply.

Methinks there is much confusion here between NASDAQ and the American OTC market (where people like me can buy even speculative penny stocks like BCN, local symbol BCLMF).

@Quantas Rather than just thinking of such companies, why not name a few? And the subject is their status at the time listed, not their later success or failure.

BCN’s share of ZNWD is worth about £16.4 million at today’s price. That works out to about 4.3p per BCN share. Still, I wouldn’t be surprised if Ganfeng decided to dump Sonora and keep the better opportunity in Europe.

The inhabitants of the capital of Sonora are only guaranteed the supply of domestic drinking water for the next 20 days, due to the most extreme drought in the last 60 years, warned the State Water Commission.

https://www.explica.co/hermosillo-on-alert-they-are-only-guaranteed-domestic-drinking-water-for-the-next-20-days.html

The nonrenewal of the loan facility is insignificant. In the unlikely event that the takeover does not occur, another one can be found for the same or better terms. It would be foolish to pay a renewal fee now.

What is significant is that BCN admits that the money runs out by December 2022, and production doesn’t start for another seven to twelve months. Some are willing to take the leap of faith that an enterprise with no assets (other than some ZNWD shares) has some value because its Chinese partner is installing some Chinese equipment that might be able to turn clay into lithium, assuming the labor market and water supply improves by then. BTW, it has to pay for half of the remaining costs.

Bacanora is not fully funded. Stop claiming that it is.

Yes, most of them had been in business for years with private funding.

This is how knowledgeable investors react to an undervalued offer: They bid up the price higher than the proposed amount.

@mrcautious -- They were not basket cases when they were listed. You are practicing "whataboutism," which a recent commentary pointed out is the favorite tool of Putin and his propaganda team. (Talk about gaslighting!)
https://www.newyorker.com/news/our-columnists/the-high-cost-of-bidens-meeting-with-putin

I haven’t seen any discussion here of how many people will be allowed at the annual meetings. Are there not restrictions on groups of more than 30? With an exception for weddings and funerals, both of which might apply to BCN.

ZNWD meets at The Clubhouse, 8 St James's Square, London SW1Y 4JU, at 11.30am on 28 June 2021.

BCN meets at The Clubhouse, 8 St James's Square, London SW1Y 4JU, at 2.00pm on 30 June 2021.