Member Info for degsie

A very positive RNS.
Bacanora CEO Peter Secker said "Recent research reports predict the lithium industry would need US$30 billion in investment in upstream capacity to meet its forecast of 1 million tonnes of supply by 2025 (a threefold increase on current levels). In order to secure funding, any new lithium project needs to be low on the operational cost-curve, without having to rely on by-product credits to artificially lower that cost per tonne. A project also needs to have reliable engineering cost estimates. A project needs to be of sufficient scale, in a location with a favourable environmental and political climate and deliver a high-grade end product. The Sonora Lithium Project is one of the very few projects globally that can deliver on all of these factors."

Last year was held on December 13th ; notice was issued on November 19th.

Energy efficiency
The market in lithium-ion batteries is expected to expand by at least tenfold in next decade. Some predictions estimate it will be worth about $25bn by 2025.The EU Commission goes further suggesting that by 2025 the global market for lithium-ion market for cars alone could be 40-55bn euros a year.

Energy efficiency
The market in lithium-ion batteries is expected to expand by at least tenfold in next decade. Some predictions estimate it will be worth about $25bn by 2025.The EU Commission goes further suggesting that by 2025 the global market for lithium-ion market for cars alone could be 40-55bn euros a year.

Bannor, I do agree but BCN /Ganfeng will not say anything ahead of deal. I do wish KDNC would give shareholders some idea of value.

Extract from report. about Sonora .
Currently our assumptions assume that the economic interests across the concessions remain unchanged, however, we do not rule out the potential r a deal which gives BCN a 100% interest

Increased to 10% of October car sales

ABD. Have you read it?

With a clear runway to project financing and the start of construction owing to
the successful completion of the agreement with Ganfeng we believe that the
Sonora project has been significantly derisked with 80% of the project
financing covered and execution risk reduced by the addition of an
experienced partner. We therefore expect the shares to rerate as the project
initially achieves full funding and then as it advances towards commissioning.
We reiterate our Buy recommendation and target price of 114p/sh.

Hanwa are listed as holding 9,883,794 shares in Annual report published in October.

Bannor. When did KM " has said in the past that the JV value 'in his opinion' is worth a couple hundred million to us". I have asked several times , most recently earlier today, for value of JV but KM won't say.

Extract from Annual report issued in October
We are now focused on securing strategic partners to help fund the €159 million capital cost to develop Zinnwald, which the Zinnwald feasibility study forecasts will generate average annual EBITDA of €58.5 million over LOM. As part of this process, we are actively considering a public listing for Deutsche Lithium GmbH (“DL”), our 50%-owned subsidiary that holds Zinnwald. Bacanora acquired its 50% interest in DL from SolarWorld in February 2017, along with an option to acquire the outstanding 50%. SolarWorld has since entered into administration and during the year an agreement was reached with the administrators of SolarWorld to extend the option period to February 2020. The year ahead will see us look to finalise the finance structure for Sonora and spin out Zinnwald. These two projects combined have an independently estimated NPV of more than US$1.7 billion and individually are ideally positioned to supply high value, battery-grade lithium products to the fast growing Asian and European EV markets. It seems a day does not go by without a report or study on the rapid rise of EVs appearing in the mainstream media. In July 2019, the BBC1 covered a report by the European Federation for Transport and Environment, which forecast a tripling in the number of electric car models available to European consumers by 2021 to 214 models from 60 in 2018. In May 2019, the International Energy Agency’s Global EV Outlook 20192 put forward a scenario where EV sales could reach 43 million vehicles as early as 2030, an eight-fold increase on the 5.1 million vehicles in circulation globally in 2018.

Wolfi. Peter Secker replies to emails so just ask.

I did ask Peter Secker in October about raising $300m and he replied as follows
" the numbers are in the public domain, but in summary the Sonora Project capital cost is $420M. BCN hold 77.5% and Ganfeng now hold 22.5% with and option to increase to 50%. We have a $150M debt facility from Red Kite, our major shareholders are Ganfeng 29.9%, M&G 10%, Hanwa 10% and Igneous 12%".

I agree that Ganfeng has done a very good deal but I do think all shareholders will benefit. The other major shareholders; five listed in annual report, own about 25% of shares and will wish to protect their interests. I, too, think that Zinnwald could be spun off and as NPV is 428m euros should be worth at least £10m. The NPV of Sonora is $1.25B equal to about £4.50 per share. There will be dilution but the NPV has been discounted by 8%pa for 12 years so should increase in value to compensate. Market cap is only £54m at current share price. A better bet than Uber or Lyft or Peleton.

Canaccord: Lithium Needs US$30 Billion to Meet Long-term Demand

https://investingnews.com/daily/resource-investing/battery-metals-investing/lithium-investing/canaccord-lithium-needs-long-term-demand/?mqsc=E4098321

Canaccord: Lithium Needs US$30 Billion to Meet Long-term Demand

https://investingnews.com/daily/resource-investing/battery-metals-investing/lithium-investing/canaccord-lithium-needs-long-term-demand/?mqsc=E4098321

Canaccord: Lithium Needs US$30 Billion to Meet Long-term Demand
https://investingnews.com/daily/resource-investing/battery-metals-investing/lithium-investing/canaccord-lithium-needs-long-term-demand/?mqsc=E4098321

HH. It states 70% in the narrative below.

I do not understand the fall in share price since the deal with Ganfeng was confirmed and I do not understand the constant complaints about Peter Secker. His presentations are a little wooden but the business seems well managed. The lithium market was overhyped and funding became difficult. The deal with Ganfeng should underpin the future development and the predictions for lithium Market are more positive.
I have looked at directors’ share dealings and the only seller has been Derek Batorowski who resigned in June. Mark Hohnen bought 950k of shares at 70p to 82p in 2017. The NPVs of the Sonora and Zinnwald are about $1,253b and 428m euros respectively and although there will be some dilution existing shareholders will be substantial beneficiaries. There was a write up in FT last Saturday.