Adam Davidson, CEO of Trident Royalties, discusses offtake milestones and catalysts to boost FY24. Watch the video here.
Agree HappyInvestor100. Combustibles are challenged which is hardly new news and the impairment is only a recognition of this. The BAT share price decline over the last year or so really has already taken this into account. The balance sheet remains strong, free cash flow outstanding and dividends are being maintained. With interest rates toppy and likely going south this is a bond like play with a modest growth overlay. Topped up this morning.
Good point tropicalblast about premium pricing for the lithium from Barroso. Will have a low carbon footprint which will appeal to all our Euro friends. See also renewable electricity production supplied 87% of Portugal's electrical consumption in November which was close to a record. So nice low carbon electricity will be going into the production of the lithium. Plus prolific wind and hydro prodcution meant that energy tariffs were the lowest for for almost 3 years. This will be good for the DFS result.
https://expresso.pt/economia/economia_energia/2023-12-05-Renovaveis-abasteceram-87-do-consumo-de-eletricidade-em-Portugal-em-novembro-8eb42a23
“There is a clear disconnect between carmakers’ electric vehicle goals and their critical mineral strategies,” said Julia Poliscanova, senior director for vehicles and e-mobility supply chains at T&E. “Tesla and BYD are way ahead of most European players who are only waking up to the challenge of securing battery metals now. This report should sound the alarm to CEOs and investors to engage further upstream in their supply chains.”
https://electrek.co/2023/12/04/european-automakers-have-secured-less-than-a-fifth-of-the-battery-metals-theyll-need-by-2030/
Portuguese PM on opening a fleet of LIB ships in Portugal said:
António Costa went to defend the decision of the Government to take advantage of these natural assets and position itself in this new “energy revolution”. “This ship wouldn’t run if there wasn’t lithium mining. It is an opportunity for the country that has often complained about not having natural resources” now has “one of the largest lithium reserves”.
https://expresso.pt/politica/crise/2023-11-28-Costa-na-margem-certa-a-esquerda-a-defender-o-litio-e-o-hidrogenio-7e325698
Canada sees the opportunity for Lithium: https://www.mining.com/canada-uncorks-1-1-billion-critical-minerals-fund/
In Portugal youth unemployment is running at 19% https://www.portugalresident.com/almost-quarter-of-a-million-young-people-in-portugal-at-risk-of-poverty-social-exclusion/
Portugal demographic timebomb: https://www.theportugalnews.com/news/2023-11-20/portugal-loses-over-a-million-children/83418
Maybe time to see through the noisemakers and think about Lithium as a new, industry for Portugal providing skilled well paid careers for young Portuguese?
Comments by the Minister for the Environment to Parliament from Expresso
Duarte Cordeiro: "It is important to distinguish research from conclusions that are hastily drawn"
LILIANA VALENTE
The Minister of the Environment is being heard in Parliament and asked about the suspicions that fall on projects in the area of the Environment, Duarte Cordeiro says that it is important to distinguish the “moment of investigation” from the “conclusions”.
“When faced with complaints, the Public Prosecutor’s Office carries out investigations. For the sake of the future of our country and of any government that succeeds us, it is important to distinguish, especially after today, between the moment of investigation and the conclusions that are hastily drawn. The country has laws that regulate environmental impact, processes are registered and it is important to give credibility and value to this. With regard to the Boticas and Montalegre lithium mines, all the steps required by law were completed and that is how it should be in a rule of law,” he said.
https://expresso.pt/politica/crise/2023-11-13-Centeno-esclarece-que-nao-teve-convite-do-PR-IL-pede-demissao-do-governador.-Mariana-Vieira-da-Silva-defende-Orcamento-no-Parlamento-4b67a123
SAV lining up some big time advisers. Increases the competitive tension for potential offtakers and partners seeking an almost unique opportunity in the Euro Li space. Barrenjoey will help marshal Australian interest where there has been a flurry of corporate deal making in the Li space
Agree Inbrackets. SAV raised £6.1m only 3 months ago at 4.67p for a total cash balance of £11m. The cash will cover all the planned activities for 2024 such as drilling and DFS and Offtake/investment deal. Plus the people who took the placement at 4.67p would be vastly unhappy if the company did a another placement considering they are already down 36% on their investment. The addition of Sprott is simply a broker rejig. Chance of cash fundraise = 0%
Good to see a new face on the companys broking panel with Sprott Capital. Maybe we will see some North American investors. In Australia the lithium corporate landgrab rolls on with Minres believed to be on the hunt for Wildcat Resources
After a slow start the EU is trying to play catch up to the US Canada and Australia in building its own lithium value chain. Europe has plenty of natural advantages including lithium deposits, plenty of chemical processing expertise and massive downstream demand from Euro EV manufacturers
Hopefully the BOD is onto this event in London this eweek
https://www.mining.com/web/us-uk-and-partners-working-on-15-critical-minerals-projects/
Well spotted Inbrackets. The key sentence about the partnership process is where he says: ''That said, there are offers that can't be refused'' The word translates as ''refused'' but what he seems to be saying is that the offers are ''very solid'' which is only what you would imagine they would be having regard to the flurry of M&A activitity in the global lithium industry and the almost unique features of the Barroso lithium project in its European context
Interesting to see Atlantic Lithium today announce they are looking at the opportunity for quartz and feldspar co-product production for the Ghanaian ceramics industry. Highlights the advanced nature of Savannah's MdB project which already has a resource plus a lot of testwork done plus local demand from huge established glass and ceramics industries in Portugal and Spain
The lithium ion battery space is not only a contest for mineral resources but also between the competing lithium battery technologies around battery chemistries being NMC and LFP. There is a good easy to read outline of this in the FT today at https://www.ft.com/content/67abc929-db1a-43c3-b03a-259a4316fd76
Takeaways are that Lithium is a continuing feature of these chemistries and that the West is determined to build strategic autonomy over both the minerals and the technology.
All good news for Savannah
Can't see where it says Savannah has not won approval to process Lithium. The DIA which was approved by the government involves the processing of spodumene ore to produce a spodumene concentrate. The concentrate will be transported to a refinery owned by someone else and they will produce Lithium hydroxide. There are many refineries planned in Europe
Verkor raising €2b to be the second best capitalised gigafactory start up in Europe. Keenly focussed on shoring up p its supply chain (a critical move for battery cell makers). It’s working with Renault to secure cobalt from Morocco and it’s in discussion with Viridian, a French startup working on a lithium conversion plant.
The opportunities for Sav lithium just get better
https://sifted.eu/articles/verkor-french-gigafactory-2bn-fundraise