Member Info for degsie

Frankie. Below is an extract from Hannam & Partners research dated May 2018
Valuation Update
We have updated our Cadence valuation incorporating the following:
• Results from the Sonora BFS,
• The implied valuation for Cadence's 30% holding in the Yangibana Rare
Earths project based on the 03-May-2018 market capitalisation of
Hastings Technology Metals
• The implied valuations for Cadence's 13% holding in Macarthur
Minerals and 7.7% in Auroch Minerals based on their respective market
capitalisations on the 03-Mayil-2018
• Our updated lithium price deck
Derivation of 0.87p price target
% Owned $m P/NPV $m £m GBp/sh
Investments:
Bacanora Lithium 7.0% 34.2 0.5 17.1 12.8 0.16
Sonora Mexlit JV 30.0% 22.1 0.5 11.0 8.3 0.11
European Metals 20.4% 100.3 0.5 50.2 37.6 0.48
Yangibana Rare Earths 30.0% 34.3 1.0 34.3 25.7 0.33
Macarthur Minerals 13.0% 0.9 1.0 0.9 0.7 0.01
Auroch Minerals 7.7% 0.4 1.0 0.4 0.3 0.00
Greenland Rare Earths 100.0% 0.0 1.0 0.0 0.0 0.00
Net Operating Assets 192.2 113.9 85.4 1.09
Net Cash -10.3 1.0 -10.3 -7.7 -0.10
Corporate G&A -12.8 -12.8 -9.6 -0.12
Net Asset Value 169.1 90.8 68.1 0.87
Source: H&P estimates, Company rep

Frankie. Page 6 of Annual Report

Clancy Exploration Limited (“Clancy Exploration”)
In September 2017 Cadence announced that Clancy’s investigations into its tenure determined that there were 28
overlapping licences out of Clancy's 200 licences that were preceding priority claimants ('Preceding Claims'). These
Preceding Claims cover a total area of approximately 12km2 and included the historical Nockelberg and Leogang
mines. Clancy continues to have priority over the balance of the project area, being 172 licences covering
approximately 68km2 ('Remaining Licenses').
Prior to the investigations, Cadence acquired a 10% interest (refer to ASX release dated 3 July 2017) in all 200 licences
held by Clancy, and the parties entered into a joint venture. Cadence was subsequently made aware of the licensing
situation and we agreed with Clancy to continue to evaluate the Remaining Licenses, in which Cadence holds 10%.
Furthermore. the board of Clancy, in discussions with Cadence, have considered it appropriate to issue Cadence
140,000,000 fully paid ordinary shares at a deemed price of $0.003 ('Clancy Shares') as compensation for the discovery
of third party priority over the 28 overlapping licenses (including the historical Nockelberg and Leogang mines).

Wood Mackenzie estimates battery demand for transportation is set to rise by almost forty times by 2040.China is likely to be building the bulk of those batteries over the next few decades, as the number of battery factories in the country expands. Half of global battery production capacity is likely to be in China by 2028, according to Benchmark Mineral Intelligence.That growth will put increasing pressure on the raw material supply chain. As a result the largest carmakers are already switching to lithium-ion batteries that use 75 per cent less cobalt than current technology. Low cobalt batteries will make up the majority of the electric car market by 2025, according to Wood Mackenzie. “Not only does this battery chemistry ease the supply constraints and ethical concerns arising from high cobalt use, but it also provides far superior energy density over the traditional chemistry, thereby reducing overall materials costs,” the consultancy says

Electric vehicles
Add to myFT
Grid storage batteries help electric vehicles go truly green
Lower costs and wider take-up promise future where cars supply power to grids
https://www.ft.com/content/1df47fa6-5376-11e8-84f4-43d65af59d43?desktop=true&segmentId=7c8f09b9-9b61-4fbb-9430-9208a9e233c8#myft:notification:daily-email:content

Electric carmakers step up pursuit of enhanced EV batteries
Supply constraints drive interest in alternatives to current lithium-ion technology
https://www.ft.com/content/b0414a1c-8042-11e8-af48-190d103e32a4

I do agree.Very encouraging RNS. The extract below about permission for drillling suggests that the Czech government are accepting EMH's mining rights.

"The permission granted for the geotechnical drilling has allowed the Company to commence these works before winter to allow a final design for the portal and decline position which form a large part of the ongoing EIA process."

Thanks.

KDNC ????
Major Shareholders
Name Type Amount Holding %
Hanwa Co Ltd - 12,333,261 11.11
Prudential PLC - 13,456,784 10.20
BlackRock Inc - 13,138,292 9.96
M&G Investment Funds (3) - 8,399,642 9.87
Igneous Capital Limited - 10,500,000 9.73
Cadence Minerals PLC - 12,285,058 9.31
Mr. Junichi Tomono - 12,333,261 9.20
Capital Group Companies, Inc - 8,573,925 7.72
Estate of Colin Orr-Ewing - 8,413,962 7.59
D and A Income Limited - 5,303,030 -

See RNS. Good news!!

Bannor. I don't understand your comment - other than Sonora. I thought you were very bullish of Sonora. The Iskander deal did not turn out well but mistakes are made. From what was said at AGM the BOD are conscious of dilution/funding and did think that funding could be arranged on reasonable (?) terms.

London. KDNC is an investment company and as I said in my earlier post the BOD has made good investments. KM is certainly engaged and very active in promoting KDNC. In addition to monthly share purchases KM & DS bought 9.6m shares between them in December 2017 at prices ranging from 0.27p to 0.31p about £30k.

Frankie/Barksy. Thank you for your comments. I have time on my hands at moment as “not mobile” because I am waiting for new hip.
Frankie. Apart from the fundamentals- demand for lithium, investments with potential- I am optimistic because of KM’s response when he was asked about options. I felt there were things going on that he could not share with shareholders yet. Your thoughts?

Stag. Please give some reasons for your gloomy view.

I am obviously a bull of KDNC but like everybody else disappointed in share price. However I do not see that the BOD has made mistakes. The investments have either performed well- BCN & EMH- or show promise.- MMS, AOU, CLY and San Luis. Zulu is subject to DD. KM advised at AGM that he was trying to realise value from JVs. Both MMS and AOU issue frequent reports that are positive. I cannot recall a write off of a failed investment. The dealings with BCN do puzzle me.
The share price is down because (1) Morgan Stanley suggested that demand might not meet supply but subsequent reports have disagreed. See link https://www.morganstanley.com/spc/knowledge/managing-wealth/research/auto-industry-bracesforelectricshock/ (2) Delays in funding BCN but with a NPV of $1.25b compared with a market cap of £64m that should be resolved and (3) EMH has had problems with Czech government but the politicians are back from holiday next week. The NPV is $540m against a market cap of £25m. (4) All the negative postings on this board.
The BOD has responded to shareholders concern about remuneration by agreeing to reduce fees/salaries and at the AGM in August 2017 the BOD agreed to cancel the options granted in July 2016 with an exercise price of 0.44p and replace them with options with exercise prices of 0.92p, 1.82p and 2.18p, these options expire in February 2019. At the AGM held in August 2018 KM when asked whether he was hopeful that options would vest replied “it was not down to hope”.

Public charging locations
As Europe moves towards its 1.3 million EVs goal, consumers will likely be required to power up their cars at home before heading out each day if the number of public charging locations remains limited.
At the end of 2017, Europe had around 80,000 public charging locations and although this number is expected to increase 25% to reach 100,000 by year end, EV Volumes cautioned it may fall short of demand.
“The number of public charging locations does not keep pace anymore… unless public charging becomes easier and more reliable, it will restrict all EV adoption,” it said.
In May, some of Europe’s biggest car manufacturers announced they would join forces to improve the EV charging experience – and simultaneously, encourage EV sales – by building a network of reliable and powerful charging stations along major highway routes.
Since its launch, the Ionity joint venture between BMW Group, Daimler AG, Ford Motor Company and Volkswagen Group has opened stations in Germany, Switzerland and France.
Despite a slower-than-expected start, the joint venture is confident it will reach its goal of 400 ultra-fast charging stations, averaging six charging places each, by 2020.

https://smallcaps.com.au/europe-targets-electric-vehicles-road-december-accelerated-sales-growth/

Well worth a read but it is 25 pages. I am not mobile at moment so have time to spare.

I hope this link works

https://investingnews.com/free-report-online/lithium-forecast-and-lithium-stocks-to-buy/

Well worth a read but it is 25 pages. I am not mobile at moment so have time to spare.

file:///C:/Users/Derek%20Bennett/Downloads/Lithium-Forecast-Lithium-Stocks-to-Buy.%20(3).pdf

https://smallcaps.com.au/europe-targets-electric-vehicles-road-december-accelerated-sales-growth/

Europe targets 1.3 million electric vehicles on the road by December amid accelerated sales growth

I would appreciate some sensible comment on this posting.
The market cap of KDNC is £13m and the value of its investments in quoted companies – BCN,EMH, MMS, AOU and CLY – is about £12m. Borrowing in last accounts totalled £4.2m and cash was £2m.
The NPV of BCN is $1.25B with lithium prices at $11k and the NPV of EMH is $540m with lithium at $10k. KDNC has about 8% of BCN and 20% of EMH, therefore its share of value if NPVs is about £160m but this will be diluted so reduce that to £50m.

Other assets.
There is the Yangibana JV and Sonora JV from which KM advised at AGM he was trying to realise value.
10% of Cly’s licenses in Austria.
Right to acquire San Luis.
Possibility, subject to DD, of investing in Zulu.
Interests in Greenland.
BCN has 50% of Zinnwald.

Anyone of the above could be a winner.

Demand for lithium is growing and the price is predicted to increase.

IMO the BOD has made some excellent investments although the dealings with BCN have confused me. I thought the questions were well answered at AGM and the small attendance did mean that those present could join in.
I do think the AGM should be held on a more convenient day and I also think the annual report should be issued in March with the AGM in April.

Severn Trent has bought renewable energy business Agrivert UK in a £120m deal that will boost the energy giant's green power division. Agrivert UK is a leader in renewable energy generation from food waste and the acquisition will add 106 GWh per annum of energy generation to the 354 GWh currently produced by Severn Trent's broader energy and renewables portfolio. Liv Garfield, Severn Trent's chief executive said: "Renewable energy is strategically important to Seven Trent and the UK as a whole as we work towards achieving

https://www.pv-magazine.com/2018/08/29/germany-reaches-milestone-of-100000-installed-storage-systems/

Dyson
https://www.bbc.co.uk/news/business-45345778

https://www.canberratimes.com.au/business/companies/orocobre-dismisses-lithium-price-volatility-taps-into-ev-boom-20180827-p5002l.html?ref=rss&utm_medium=rss&utm_source=rss_feed