The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Letās face it this is a BS tick box web site with only 90 listed companies in the USA, CANADA and AUSTRALIA subscribed. Itās totally meaningless for a minnow like EMH who are not even an operating company. CEZ are in the driving seat here, provide statistics on their operations.
Considering the conversationā¦ā¦.
Volkswagen's Zwickau Plant Produced Record Number Of Electric Cars
https://insideevs.com/news/622670/volkswagen-zwickau-plant-production-record/
For a mining and processing project like this a 30 month Design and Construct timeline is reasonable. So DFS / FEED in 2023 followed by detail design and procurement of long lead, items into construction phase followed by commissioning looks like 2026 at best. There are always the inevitable delays due to supply chain issues, inclement weather etc.
Bloomfield is a Non Executive Director of European Metals. A non executive director is not involved with the day to day management of the company but can be involved with policy, strategy etc.
A NED has the SAME legal responsibilities as an ED and therefore is subject to corporate governance and compliance. I would therefore suggest that there is no āinsider tradingā and he is buying because the share price is good value.
Although BHP have been extremely successful they have also made numerous poor investment decisions over the years.
To name but a few; Magma, Pacific Refining, Fosters. I remember 3 disasterous projects in Western Australia - Ravensthorpe Nickel commissioned in 2007 at a cost of USD3B mothballed in 2009 and later that year sold for USD340M. Beenup Mineral Sands Plant which only operated for 2 years from 1997 before they closed it down. Then there was the investments in DRI.
So they may be cautious after losing their shareholders plenty of money in the past. Iron Ore accounts for over 50% of their revenue and Copper around 25%. They also spun off S32 in 2015 which mines a large array of minerals. I don't think small Lithium plays or any other 'strategic' mineral fits into their business plan IMO.
There has been a massive uplift in Australian Lithium related stocks and EMH went along for the ride . If EMH rises and the rest of the Li market is flat then there is news. IMO this is not too far away. No point in selling now.
But you can have an MOU or other form of agreement stating that, should the mine get FID approval, XYZ would be prepared to purchase X tpa of product from Geomat hence starting the process of an offtake contract.
Sid you are bang on the money.
The JV will provide the offtake agreement that some people are fretting about. CEZ has already announced that 10% is their share - and unlikely to increase (refer announcement). So Geomet will require a market price for the product so Geomet gets the best market price. What does that mean? Plus Tin ā¦ā¦ā¦
Colin
With listed companies under the scrutiny of ESG and Ethical practices, what would CEZ (or the government) gain from shafting EMH. IMO, for what itās worth, I think CEZ is comfortable with EMH as a partner. I do not see any information or news that detracts from that. There is no doubt that CEZ controls news flow from Geomet (it would not be any different if BHP or RIO were in charge) so donāt expect dog and pony presentations. But, EMH has an investment in one of the best Li shows in Europe. The show will go on.
And, if it provides any comfort CEZs July presentation spells out they have a ā51% interestā, and by this commentā¦ā¦
Values of EBITDA and Capex represent 51% stake of CEZ Group on lithium mining project and 10% stake on battery factory. These projects are unlikely to be fully consolidated.
They are happy with 51% and unlikely to want a larger percentage.