Member Info for degsie

Bandit. I am not expecting any confidential information but I have asked him to clarify matters. He did suggest I looked at page 208 of feasibility study - link below - in response to one query.
https://www.bacanoralithium.com/pdfs/Bacanora-FS-Technical-Report-25-01-2018.pdf

Mr C . I can understand your disappointment, I am OK with BCN but under the water with KDNC which was overhyped by DL. I have no problem with present BOD and I find Kiran replies to emails and telephone calls. You must know from my posts that I think BCN and KDNC are very undervalued. I do think there are too many negative posters who are undermining share price and as you are holding on be more positive.

Mr C . If I was as gloomy as you I'd move on .

Extract from Annualk Report Page 5
The Sonora Lithium Project consists of ten contiguous concessions covering 97,389 hectares. Two of the concessions
(La Ventana, La Ventana 1) are owned 100% by Bacanora through its wholly-owned subsidiary Minera Sonora Borax
S.A de C.V. (“MSB”). El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 concessions are owned by, Mexilit S.A. de
C.V. (“Mexilit”) (which is owned 70% by Bacanora and 30% by Cadence). These concessions are located
approximately 190 kilometres northeast of the city of Hermosillo, in Sonora State, Mexico. They are roughly 170
kilometres south of the border with Arizona, USA. The San Gabriel and Buenavista concessions are owned by Minera
Megalit S.A. de C.V. (“Megalit”) (which is owned 70% by Bacanora and 30% by Cadence). The asset has Measured
plus Indicated Mineral Resource estimate of over 5 million tonnes (‘Mt’) (comprising 1.9 Mt of Measured Resources
and 3.1Mt of Indicated Resources) of lithium carbonate equivalent (‘LCE’) and an additional Inferred Mineral
Resource of 3.7 Mt of LCE, Sonora is regarded as one of the world’s larger known clay lithium deposits.
Key Operational Highlights on the Sonora Project are as follows:
? Published its Feasibility Study (“FS”) on the project. The FS targeted a two-stage open-pit operation,
reaching 35,000 tonnes (t) of lithium carbonate (Li2CO3) per annum (“tpa”) in year four.
o The FS has a pre-tax NPV of US$1.25 billion and an IRR of 26%. The capital and working capital
costs of the first stage of production (17,500 t of Li2CO3 per annum) is estimated to be US$460
million.
o Under our estimation, The FS mine plan currently has some 12% of the plant feed being mined
from the 30% joint venture areas owned by Mexalit.

I agree.All the gloomy posters undermine share price. Try looking on the bright side,.
The NPV of Sonora is $1.25 billion and Zinnwald is 428m euros. A major player, Ganfeng, has become a major shareholder and investor in Sonora.
I find if I email Peter Secker he responds although he is careful not to give me any inside information.
I agree his presentations are a little underwhelming but better that than someone who is a ramper.
The market cap after the shares are issued to Ganfeng will be about £65m and I don’t think there will be much dilution.

Ganfeng has bought into Sonora Lithium Ltd that owns all BCN's concessions in Sonora.
Extract from KDNC Annual Report
"Under our estimation, The FS mine plan currently has some 12% of the plant feed being mined
from the 30% joint venture areas owned by Mexalit, "

I emailed BCN yesterday to enquire the capital cost of Sonora Project and was told $420m . The Annual report that is due on Monday should tell us more,

Tomcat. I think my latest post gives same information as my first post about concessions owned by Sonara Lithium Project.I think the RNS states the position correctly.

KDNC still has 30% of Sonara Lithium Project. Ganfeng has paid £7.58m for 22,5% of BCN's share as set out below. As I said in my original post "Without more information it is not possible to value the 30% owned by KDNC but it does give some idea of potential value and I would think that BCN/Ganfeng would like to own 100% ASAP.", The value of the share retained by BCN is about £30m.
The Sonora Lithium Project is comprised of the following lithium properties: La Ventana lithium concession, which is 100 percent owned by Bacanora and El Sauz and Fleur concessions, which are held by Mexilit S.A. de C.V. ('Mexilit') which is owned 70 percent by Bacanora and 30 percent by Cadence Minerals Plc.

Per RNS issued on Oct 14th

Ganfeng has 22.5% JV investment directly in the Sonora Lithium Project ('Sonora').

That is what recent RNS said.

I have listened to Peter Secker again and he does not say how much further funding will be required. The annual report is due next week and I hope it will be covered in that.

Strangerstill I agree with the suggested values you place on BCN but as production is planned for 2021 I think your date of 2026 is pessimistic.

Ganfeng has paid BCN £7.56m for 22.5% of Sonora Lithium Ltd which owns 100% of La Ventana concessions and 70% of El Sauz and Fleur concessions.
Without more information it is not possible to value the 30% owned by KDNC but it does give some idea of potential value and I would think that BCN/Ganfeng would like to own 100% ASAP.

We reiterate our Buy recomendation and 114p target price.

A reasonable chance that Ganfrng will wish to buy KDNC out .

Interesting article.
www.blackrock.com/uk/individual/products/investment-trusts/our-range/blackrock-energy-and-resources-income-trust/trust-information/insights/natural-resources?siteEntryPassthrough=true&cid=native:investmenttrusts2019:beri:ii:link

The market cap is now £8m, IMO ridiculously good value. W H Ireland said fair value is 44p per share and a potential unrisked value 165p. The directors invested £350K at 11p at the end of June and at the AGM they were very positive and enthusiastic.
EMH alone is worth £4,5m and MMS and Amapa could be worth considerably more. I'd like to know value of JVs ; I do think Sonora is worth more than £8m.

Just been catching up on the last two days postings -very thoughtful and interesting. I am impressed by research.
I was at AGM and when questioned about issuing shares and diluting shareholders the BoD said they would only do so if necessary - raising debt would be preferred and possibly selling an investment. The BoD made the point that they did not wish to be diluted as they are shareholders. Agree that they also said they would consider including existing shareholders.

Why investors should pay attention to director dealings
One informal indicator market watchers like to keep an eye on is “director dealings”. When a director buys or sells a significant chunk of shares in the company they work for, it always draws attention. After all, who is better placed to know a company’s prospects than those who run it?

This is why “insiders” are only allowed to buy and sell shares in their own firms at certain times – eg, a CEO can’t buy or sell in the run-up to their annual results coming out (this is known as a “closed period”).

Big buys by an insider are obviously bullish. Big sales don’t look so good – yes, they might be needed to resolve a divorce or a tax bill, but it’s rarely good news to see top managers baling out of their own stock.