Member Info for Borocay

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 “insider trading” 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.

BeechNUT thank you for your analysis, very useful.

Absolutely spot on Malik. This is the biggest and most corrupt casino in the world.

It’s also summer holidays in Oz. Not match happens in January to be honest.

Ghin
Agree totally. The OT deal will be on CEZ terms and they will take the entire production for the factory. But what is wrong with that?

Thanks Antelope - there is so much diatribe on this forum it’s embarrassing

This is such a relevant point Z. I am amazed why some investors are happy with Africa and South America but ship themselves with the Czech Replublic?

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 ………

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 it’s 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 don’t 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 ‘51% interest’, and by this comment……
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.

It’s a Czech project in Czech territory, with about 2% of known lithium reserves on the Czech side, which theoretically means we own nearly 1% of the worlds known lithium. Not sure about this one but it sounds good!
EMH is an investor with some added responsibilities in operations and ESG. But we have 49%, so not in control. There has been ample time to be shafted if that’s what some contributors feel is a risk. I doubt this will happen but we are only a junior partner - thankfully. The alternative as a junior would be to try and raise a huge amount of money to continue the development and in addition apply for all the permits - no thanks.
Just come to grips with the fact that you have invested in the project. If you are unhappy with the way it is going, divest. It’s not Keith or Babis or anyone else, it is high/medium risk investment in a potentially lucrative project. There are many others with a lot more risk. Good luck.

Yes Punter you are absolutely correct.
Get the elections over and done with and move on. I see minimal sovereign risk to be honest as business in the CR is pretty robust. There will be a battery factory announcement soon and IMO CEZ will be part of it.

I think it is important to get back to investment fundamentals.
EMH has 49% of the largest hard rock Li deposit in Europe.
CEZ needs to develop this project ASAP
The DFS will present a business case 1H next year maybe including processes being explored with Lafarge that will decrease Production costs
There is Tin ?

Cannot understand this sell off. The project has just been endorsed! Timing is conservative but that’s ok IMO. No digs at EMH just a measured approach to project timeline. Then, if CEZ beat schedule everyone gets back slapped. Normal project behaviour!

I guess it’s easy to be paranoid! However at the end of the day…….
EMH is an investor in Geomet irrespective of the the fact their personnel are involved in many aspects of the development.
The Government and CEZ has had years to change the ownership ratio but hasn’t
Political points will be gained by including academic institutions
Lafarge is French, Skoda is German, LG is Korean, so it is not a total anti foreigner campaign
To me it is the build up to the mega factory announcement and the announcement of Geomet TO agreement to the factory consortium

Well the off take should be announced prior to the election along with the VW/LG/CEZ mega factory announcement, probably for around 15k so EMH is cheap as chips regarding capitalisation IMO only….

To be perfectly honest MO, based on that criteria I would not invest in any stock, let us be honest it’s risk and reward. The sovereign risks you have alluded to are extreme. Anyway everyone has their own risk appetite so good luck.