Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
I think many may be tempted to sell with this bounce but the Sheffield involvement is a huge vote of confidence. Everything starts to point to an large uptick, the wider geopolitics in particular. Russia‘s war and the need to source new gas streams, the EU declaration of gas as a transition fuel, the demand in Asia on our Aussie doorstep, the commerciality thresholds being met etc etc. I can see this hitting 20s in the coming weeks and who knows, with the Sheffields on board this may go far higher, their involvement will be a trigger for much wider institutional interest.
Great news ! Regarding the 12p placing price paid, the Sheffield family gets a royalty interest in return, so this would dilute the 12p mark and settle us down somewhere between 11.30 to 11.50 I believe. That would be the notional value they paid. That’s back of an envelope and hope I‘m wrong but nonetheless, this is fantastic news and kudos to Hydro for tipping their involvement. GLA Davo
as an example shares are loaned when the price is 10p. Borrower collateralises back to lender usually in bonds at market value of the underlying share. Borrower sells the shares at 10p and waits for the shares to drop. Any change in value of the underlying shares results in collateral being rebalanced with the lender (usually a daily mark to market). When shares drop to say 5p, the borrower buys back in and has made 5p per share. He returns shares to lender and gets his collateral back. The lender makes a fixed % on the daily value of the loaned stock so he's happy, he gets his shares back and has made a small % return on what would otherwise have been a static portfolio investment. The borrower has made a 5p spin. I'm not saying it's right, but stock lending and collateralisation makes the world go round, it is a trillion++ dollar business and most funds lend out stock in this way to increase their returns (yes, even some pension funds).
it was a good presentation, 20 questions answered and a few more, as much as POQ could say anyway. He did also say that an exit would definitely be with outright sale of the company's stock and not piecemeal, as he talked to possible tax implications of selling assets only.
Beetaloo, many thanks for forwarding the presentation. Origin/Falcon are now apparently on the Beetaloo extension ! I re-read the updated Falcon investor presentation on the website, it's hard to reconcile the sp action of yesterday with the positive messaging in that document. Long term I think operators will eventually crack the fracking code for this enormous resource, I'm hoping for positive news from our acreage and an exit within 12 months upon (hopefully) our declaration of commerciality. Risky business at a risky stage, but the underlying reason we are invested hasn't changed, there is gas and oil there in enormous quantities. GLA
Canary - potato, potatoe. My wording was that Newcrest will not stump up based on future possibilities (what might be), it will be based on factual data implying actual potential (knowns) today, not so much on what if’s down the track. 30 years in the securities industry and a fair amount of time in data rooms and valuations experience tells me this. Thanks for your humble opinion, I‘ll stay invested as x10 so far has been rather nice and I can see another x2 or x3 in due course. GLA
I agree with your comments. I think the end result will be where neither party is ecstatic but each can live with the agreement. In other words, a successful negotiation where both parties can be aligned and move forward. I don't think GGP will force the highest valuation possible and squeeze Newcrest to the point where good relations are at risk (we are after all partners in this). Newcrest will also be wary of an over high valuation of the 5% as it affects their own book value calculations on their 70% and living up to their shareholder expectations from that point. Whatever happens, this is the acid test of what this is really worth to a buyer at this point in time, based on known data - not future possibilities.
Ha Jiffy! I knew that was coming, it's actually DAVO 5 - but I get the connection. My point is that initially the doc is good, based on fact and how the offshore Eurodollar world got started. My issue with it is you soon get a raft of politically driven folks popping up with an agenda rather than a factual analysis. The TJN, Occupy Britain in their bobble hats, lefty professors etc, really not that credible. Trusts are how companies deleverage their balance sheet, no airline owns a plane, no car manufacturer owns any of their customers leases, they all get wrapped into securitizations held by....trusts and sold to (bond) investors, that wasn't even mentioned and it is the bulk of trust related work. The doc misunderstands global finance and casts a shadowy light on everything, with an agenda to disrupt rather than understand.
Off topic, sorry.
Back to GGP, I don't see a bid coming but will say we are already highly valued at 600mio. World class asset but at the development stage so I am pinning on an exit of circa 1.2 - 1.5 bio - I don't see the upside as much north of 30p - speaking as a LTH I'm happy with that.
This film/documentary is partly based on fact but then twisted into something sinister by a coterie of lefty professors and investigative journos. One to avoid unless you are a dedicated Guardian reader or far left Labour voter. Why let real facts obstruct a political agenda eh ?
we know the acreage valuations, but it was again interesting to see these in his presentation. Our share price reflects a 100 dollar valuation per acre. Typical North American values, albeit in proven commercial areas, are 1,000 (exploration), 4,000 (appraisal) and 12,000 (production). Not news for most, but for me in the context of the overall positivity this was again underpinning the scale of this thing, the toenail of the elephant chestnut came up again. Big talk also of the remoteness of the Beetaloo but proximity to major pipelines and investment (Inpex, Total). Not all new but as a package, this 1 hour was very, very compelling.
regarding funding, yes that was interesting. POQ did say there is 9.4 mio in the bank as a result of the 2019 capital raise and that we don't need funding, but to extend any exit timeline to be on our terms, it may be needed - there was a huge emphasis on the word MAY - unlikely across 2022 in any case from what I read but for sure, this is uncertain. He was not to be drawn on the Origin spend and how far into the carry we are, but this was encouraging, with caveats (?!). I liked his wry smile at the mention of our noisy neighbours 'core Beetaloo' - POQ stated clearly we believed back in the day we had the best acreage and that end commerciality decides what is core or not, but we are v happy. What I liked is that the better our neighbours do, the better for everyone - this may be obvious, but the news expected east of us at end December is very, very important to the overall perception of the Beetaloo.
I thought the meeting was excellent for shareholders. Not much new but you can glean a huge amount of positivity - key words used often - hugely exciting, Inpex mentioned a lot, monetising through sale of CAD co / topco, exit route on our timing and terms, commercialisation will no doubt attract supermajors but on our timing - I thought POQ came across very well, hope they do this again as governance and disclosures allows. May invest more on the back of this, the undercurrent of positivity was very strong, 2022 looks like finally being our year (or early 2023) as all stars are aligning (my words).