Member Info for degsie

It would be good to know value of JV to KDNC

Ord Minnett has emerged as a fan of Hastings Technology Metals (ASX: HAS).
The broker released a report late last week tipping the stock to double to 30 cents in spite of the cold shoulder its shareholders gave its capital raising in May.
There were four reasons why it found Hastings attractive. First was its high value orebody at its Yangibana project.
“Yangibana contains one of the world’s highest concentrations of the highly sought rare earth NdPr which represents 35 per cent of the resource and ultimately 40 per cent of its future production,” said analyst Dylan Kelly.
Its resource, 21.7 million tonnes, enabled the product to have a basket price of US$20 per kilo, substantially higher than existing producers.

I emailed BCN about outstanding approvals and received reply stating "submitted to relevant authorities".

If there was any adverse news BCN would have had to issue RNS. The sellers are probably showing a profit because of rise and are moving on.

https://www.bbc.co.uk/news/business-49022684

I have had a look at the various investments held by KDNC. Market cap is currently £11m and the quoted investments, EMH, MMS, AOU and CLY have a market value of about £8m. I believe KDNC has loans of about £2m and £2m has been deposited, pending approval of the agreement, to acquire an interest in the Amapa Mine. In addition there are the JVs with Hastings- Yangibana and BCN- Sonora, the Greenland Rare Earth Projects and the interests in Lithium Technologies and Lithium Supplies.
I believe the BOD has made some very promising investments; I cannot recall a failure although I am puzzled by the dealings in BCN. I do think the BOD should advise shareholders of the value of JVs, Greenland and the potential of the other investments. The AGM is an opportunity to ask for this information.
The BOD has shown its belief in KDNC by its investment of £350k in shares at 0.11p at end of June.

https://seekingalpha.com/article/4283884-look-emerging-electric-aircraft-sector?isDirectRoadblock=false

MJFMSG. I have been reading your posts and cannot find one for any company that is positive. Are you a professional shorter?

I have re-read Business review and Chairman's statement. Very positive and well worth a read.

https://www.bacanoralithium.com/cms/wp-content/uploads/2019/02/31-Dec-2018-Interim-Financial-Statements.pdf

From Annual Report
Clancy Exploration Limited (“Clancy Exploration”)
Through a compensation agreement in relation to preceding claims over the the historical Nockelberg and Leogang
mines, Cadence were issued 140 million fully paid ordinary shares in Clancy as compensation for the discovery of
third party priority over the 28 overlapping licenses (including the historical Nockelberg and Leogang mines). As of
the date of this document Cadence holds approximately 3.9% of Clancy

Clancy Exploration (ASX:CLY), which is now known as Sagon Resources, put out a simple update on the progress of its planned acquisition of the Cummins Range rare earths project and investors went nuts.
Shares jumped 225 per cent to 6.5c on Friday morning on the trading of over 2 million shares.

Plus Directors bought £350k worth of shares at 0.11p at end of June.

The value of shared held in BCN is almost immaterial , the dealing in shares is very puzzling, but JV could be of substantial value. See extract fro Annual Report below-
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. 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. A simple calculation NPV $1.25b . 30% of 12% is $45m £36m . Could be but???

High Voltage: A ‘false narrative’ is driving lithium stocks down, Benchmark says

https://stockhead.com.au/resources/high-voltage-a-false-narrative-is-driving-lithium-stocks-down-benchmark-says/?utm_medium=email&utm_campaign=Stockhead%20Morning%20Newsletter%20Tues%20Aug%206&utm_content=Stockhead%20Morning%20Newsletter%20Tues%20Aug%206+CID_d15a936cca684d97607a8f14b0434267&utm_source=Campaign%20Monitor&utm_term=High%20Voltage%20A%20false%20narrative%20is%20driving%20lithium%20stocks%20down%20Benchmark%20says

The market cap of KDNC at current share price is about £11m.
EMH has market value of £29m and NPV of $1.108Billion (post tax.8%) £900m.There will be substantial dilution but KDNC should see a substantial increase in the value of its holding of nearly 20%.

Directors invest £350k at end of June.
I cannot think that directors would invest unless they were very confident about prospects.
Kiran Morzaria and Donald Strang have participated in the placing for 45,454,545 ordinary shares each. Exception Capital, a fund managed by Adrian Fairbourne (a Non-Executive Director of the Company), has participated in the Placing for 227,272,727 ordinary shares. The participation of these 3 parties constitutes a related party transaction under Rule 13 of the AIM Rules for Companies. The independent director, Andrew Suckling, having consulted the Company's Nominated Adviser, WH Ireland Limited, consider that the terms of the transaction are fair and reasonable insofar as the Company's shareholders are concerned.

Comments in Annual Report
Chairman’s statement.
Whilst our equity stake is lower our JV interest became increasingly valuable.
Strategic report.
The Mexalit JV with BCN will provide 12% of plant feed for the mine plan.

This is very speculative but the potential value based on NPV of Sonora of $1.25 B is 30% of 12% =$45m or £35m.

research-tree

www.xxxxxxxxx.com

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The link below gives limited access

https://*********************/companies/uk/industrial-metals-iron-steel/european-metals/research/whireland/update-lithium-hydroxide-production-confirmed/2598e159-ca93-4045-8800-e5c922cbd8bf

https://mailchi.mp/macarthurminerals/z721ovht4k-2760733?e=043e0f3dd8

Macarthur Minerals Limited (TSX-V: MMS) (the “Company” or “Macarthur”) is pleased to provide an update to Shareholders outlining an active and significant second quarter 2019 in the ongoing development of the Company’s Lake Giles Iron Ore Projects and exploration activities across the lithium, gold, nickel and cobalt projects in Western Australia and Nevada, USA.

SECOND QUARTER HIGHLIGHTS

- Closing US$6 million institutional Convertible Note offer to fund a Bankable Feasibility Study (“BFS”) on the Lake Giles Iron Project
- Glencore participation in the financing to fund the BFS
- Appointment of Orbit Drilling Pty Ltd to complete the infill and metallurgical drilling program to support the BFS
- Filing of the Preliminary Economic Assessment NI43-101 Technical Report, for a combined hematite and magnetite project (the Lakes Giles Iron Project). This re-evaluation resulted in:
~ a reduction in the operational costs for the hematite product;
~ rationalisation and reduction in Capital Cost for development of a combined magnetite and hematite project; and
~ revised logistics transport solutions and costs
- Progress of a rail haulage agreement by entering into an Exclusive Negotiation Agreement with Aurizon.
- Repositioning of Macarthur’s portfolio of highly prospective lithium and gold projects in the Pilbara region of Western Australia through an earn-in Joint Venture Agreement with Australian listed exploration company Fe Limited (ASX: FEL)

Mr Cameron McCall, Executive Chairman of Macarthur Minerals commented:

“The uptick in the iron ore price to US$122.60/tonne continues to drive major momentum in the iron ore industry. Premiums for high grade ore and discounting of lower grade ore have contracted during 2019 but remain well above 2018 spot prices.

The Company’s focus on delivering a product of +65% Fe will create price support when the iron ore industry returns to an oversupply market environment and continues to engage with potential strategic partners to create short-term cash flow and deliver the Lake Giles Iron Project through to production.

The Company assessed the recoverable value of the projects to be in excess of historical capitalised costs. The impairment change of $55,851,937 raised in 2016 has been reversed as reported in its audited annual report for year ended March 31, 2019 filed in July 29, 2019. The Iron Ore projects’ book value reflects the historical costs of exploration and evaluation expenditure capitalised in accordance with the Company’s accounting policy and Australian accounting standards and IFRS."