The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
I have been invested in KDNC (was REM when I first invested where Sonora was the Saudia Arabia of Lithium and our prime investment ) since 2015 and I attended the AGM in September 2019 where I had to accept the consolidation with a significant amount of pain. I accepted that along with the shift in focus in strategy to own more control of an asset / project even though that took us away from our prime focus Lithium , to Iron Ore.
However, I have lost complete confidence in KM and this board’s abilities to deliver any shareholder value or return. KM continually speaks of 300% returns on our asset investments yet seems to ignore the fact that they have driven zero returns for shareholders in the last 10 years. It simply is not acceptable. As an example we would have got greater returns 4-5 years ago directly investing and taking position in Piedmont
There is quite clearly nothing for us at Sonora. We will all be dead before that returns anything.
On Amapa it is very difficult to see how that delivers any material returns for us in either the short or medium term.
KM is judged on shareholder return of which there has been zero for 10 years. We desperately need a dynamic CEO who can execute.
Has anyone received their application form for the open offer? If you have, did your broker notify you?
OBS what are you hoping the Ampa iron ore project will have on the Cadence Market cap ?
This is the only thing that give me confidence.. there is no way KM, DS & AF have invested their own money to make a few grand! On that basis the Brazil project and what is happening with Macarthur could be very very interesting indeed. My only concern here is how diluted we are and the level of rise this share needs to get anywhere the levels it was at 5 years ago.. Having said all that if the Brazil project gets to revenue quickly within the next 2 years coupled with one or two other projects then you could potentially see a massive re rate based on the MM’s valuing assets in the multi millions as opposed to ignoring them completely. I also believe we will have paid off our ridiculous debt the one we borrowed to try and reverse takeover of Bacanora
It keeps going down for 3 main reasons
1) dilution - constant diluting to raise funds.. not pretty not nice!
2)BOD do not appear to have any credibility in actually investing in anything that either will or has the capacity to return any shareholder value at all. Even when they do ie BCN they de invest at a loss !!
3) most investors and the market has lost faith with Cadence who appear to not know what they are doing. Ie the handling of BCN , the great strategy change To own assets and Saint Luis in Argentina.. Anyone know how that panned out .. The RNS staring we were going to invest in the new Saudi Arabia of Lithium in PREM and the great Zulu project only to decide a month later that it wasn’t for us (not that I minded. We could have told them it was tosh) or now a sudden dart into Brazil and Iron Ore .. it all seems very chaotic, not very strategic and might I say highly highly speculative
Not sure we are still invested, involved or bothered by BCN. I noticed it was admitted from mention during Kieran’s much maligned VOX podcast show yesterday.. not mentioned at all as a key asset.. Those of us who have been involved, invested since the early days of 2013 will find it hard to understand how we spent so long pushing prodding BCN , billed as the ‘Saudi Arabia’ of the Lithium world to now a complete disinterest! How that asset / investment has been so poorly managed by Cadence needs a thorough investigation.
I always told you Peter Secker was an arrogant slow moving fool and I have been proved right. IMHO Sonora will never get to production and Secker should be firmly held accountable.. So slow, So cumbersome. He is no doubt telling everyone the opportunity for Lithium is 2050 ha ha ha .. Get rid !
You can sense the anger from the fact it’s true a big placement is coming and I for one predict Bacanora in its current form will never come to fruition. The only way it gets mined is if a Rio Tonto or another major player like SQM buy the whole damn lot ..
Oh dear some one has seriously hacked off Peter Secker .. That’s not a bad thing as I don’t think there is anything that could be more appropriate than getting under Secker’s skin
The simple fact is that this is never going into production...... the only hope is that the bod can sell the whole lot
What you don’t like Peter ‘We have all the time in the world’ Seker ? He should have been effectively removed around 2 years ago ..
Why is Derek having the monopoly on asking questions???!!!
Alan Green is such a poor interviewer.. Why is there no question with regards to company strategy.. Lady year if you remember Kiran was all excited telling an attractive Blonde about our change in strategy and that we were going to take control of assets! What has happened to that strategy???! So far we have seen a disastrous PR around both Saint Luis and Prem .. WTF is going on
“Cadence is a unique early investment strategy & development firm, within the mineral resource sector. We identify undervalued assets, with irreplacable strategic advantages. We invest in them and help turn them into powerhouses” Can anyone provide or site a real world example to where Cadence Minerals has invested in a company and help to turn that company into a ‘powerhouse’? Does ‘powerhouse’ mean something completely different in the context of Cadence Minerals ??
Does anyone know when the next planned company Webex is planned for ?? God knows we need one and KM needs to seriously consider his position imho..
Ivy bush why would anyone in their right mind hold 85m shares in Cadence.. I’m guessing the performance over the past 12 months gives you enormous confidence ha ha ha
Ivybush if you provide clarification on what has been gained by effectively borrowing £12m then please highlight?
Just a quick question but when is Secker expecting BCN to be in production?? I’m ASSuming it’s now something like 2023 or 2025 , that’s ASSuming it does actually get to production.. I’ve been In this nearing 5 years and for me this asset has done nothing but drift with “we have all the time in the world” Secker! I would now much rather see the whole thing sold off in one deal to a Major.. It’s the only way we are going to see a return here.. The only downside is Secker would walk away with a lot of cash..
Ok time for a coffee and just pressed play on Michael Caine and Zulu ..
Surely the time has changed me to sell the entire thing on to a big player that can actually fully fund the development and get this to production.. The SP tumble clearly indicates the market has lost faith and that Joe Lowery’s recent assessment (LinkedIn post) of mines solely reliant on Clay requiring funding where the market has zero confidence