Member Info for Edgein

True guys, great to see the renewal of Wowo gap today as that makes up a big part of the new IBM JV. That really is a massive indicated Ni reserve for a company worth about £2.5m. No wonder that 540k tns contained Ni brought in those large SE Asian companies. Be interesting to see what happens to the market cap here as they progress this JV. The new REE and lith assets are just a bonus to these huge Ni assets. Might soon be time for the market to start to factor some of this into our valuation. I wonder what would happen if they added Brazilian production to this mix. :)

Regards,
Ed.

Shaa,

You're welcome. Yeah there's gonna be a mountain of paperwork for them to agree on, COPL lawyers will be all over it most likely. Its been going on since September so almost 6 months, hopefully near over the line now. As you say one RNS can change everything, fingers crossed its the next one. A large recognised company will want to nail down every fine detail.

Regards,
Ed.

Good afternoon Shaa,

Yes I would imagine that the JV will be at the parent company level and not at the SWP subsidiary level. I'm sure we're all looking forward to seeing those fine details once agreed. Certainly the uplift in production recently has derisked this to an extent. He certainly could do with signing off on the RBL/JV sooner rather than later. It'll be interesting to see if the re-entry of the next CCU well has happened yet. I hold a company drilling in Northern and Western Alberta and weather hasn't stopped them drilling let alone well reentry. At least the last update was a step in the right direction. He would need to squeeze out more than one recompletion before he could make a material difference to the 40.5mmbbls 2P.

Could Art class the JV as a material event and suspend, possibly especially if it brings in immediate material value cash/carry. Its likely to involve areas of booked reserves, not just the Feed deeps imo. The prospectus was related to the bond conversions due to the amount of new shares that needed placed and the tight main market rules. I've not seen a jv previously trigger an RTO or need for an admission document like we had with Atomic etc.

Regards,
Ed.

Mcfcnige,

Hard to say how it would be funded, likely debt and equity. I have mentioned one of my holdings is doing the same thing right now and getting Trafigura to stump up $335m for their Angolan acquisition. For CRCL its likely to be a debt/equity mix. They're apparently looking at production, that means reserves too and that opens up reserve based lending (RBL). Could be a combination of debt/equity/CLNs etc. They do have supportive shareholders here with the Chinese wanting in at a premium etc. Either way if CRCL comes out of this with production and reserves it will look like a different company. Perhaps then the market will add some value to those large Ni assets too.

Regards,
Ed.

Mcfcnige,

Well he certainly seemed to think that they were positive of a successful outcome from Brazil (perhaps what the end of March rebrand is all about). It wouldn't take much to shift the dial here, for example EDR at the moment is valued circa £15m and they only produce about 233boepd and they don't have a JV with large companies on a large Ni asset. A small asset like that may not require RTO given the current assets here. Interesting times in the next few weeks. Interview suggested weeks not months.

Regards,
Ed.

Fastfood,

I hope HH doesn't mind me answering your question, the 1640bopd would be gross before state royalties etc.

Regards,
Ed.

HH1983,

Yes its certainly a very important time for the company to be increasing its production volumes to 1400bopd with 240bopd shutin due to weather. Clearly the operations are starting to have an impact on volumes produced. Hopefully as the weather clears they'll add this 240bopd in the near term as well as incremental production across the CCU and BFU.

Regards,
Ed.

Mcfcnige,

That's a possibility. If they establish themselves as a Brazilian oil and gas producer and find something in either the REE assets or Lith assets then IBM could become less important to them. KRS did redistribute the shares in CAI to its shareholders after demerging its gold assets in Australia. So yes its possible. IBM is the perfect way to develop Mambare and Wowo gap as if they had to go it alone, rather than have those large JV partners, getting drilled up to DFS would have resulted in more dilution than the current JV route. Also being backed by those large cathode producers should make eventual development funding for the Ni assets much easier.

Regards,
Ed.

Don't forget the biggest hook of all, integrated battery metals, that's where the core value lies with this one currently and attracted in those $1bn+ Chinese and Korean companies. The FGS assets were just a distraction, the share price should have went up when they ditched those low margin assets. A lot of oil wells can have IRRs over 100%. They've also got the bluesky upside of Mt Weld and the new lith asset.

Regards,
Ed.

McfcNige,

Yes they have to be exercised at a strike price of 0.0021p and bring in cash at the time they are exercised, they work pretty much like share options.

Regards,
Ed.

I know what you mean those salaries could be very lucrative indeed:

"Corcel Plc (London AIM: CRCL), the natural resource exploration and development company, with interests in battery metals including nickel, cobalt, vanadium and rare earth elements, announces that Mr. Parsons, the Company's Chairman, has elected that, rather than draw a monthly cash salary, that he receive his remuneration for the next four months in stock of the Company."

Well positioned for sure ahead of the meetings in Brazil this week.

Surely the warrants aren't in the money quite yet as they're mainly owned by the Chinese who bought in at a premium to the current share price.

Regards,
Ed.

Mcfcnige,

We'll just have to wait and see, perhaps not very long due to their meetings next week. I3E managed to transform themselves with oil and gas production acquisitions and are now the best dividend payer on AIM. SRSP are going through the same process of transformational RTO. So who knows what will happen here, the two new projects here at Mt Weld and the lith look exciting. Fingers crossed they'll bag some production onshore Brazil.

Regards,
Ed.

Mcfcnige,

They didn't specifically say Brazilian oil and gas production, just assets, that may mean an exploration licence, it may mean something more material. Also talk of transformative deals may also mean cathode production as mentioned in some of their online interviews, i.e. more downstream on the battery metals than just aiming for battery metals and REE development. As mentioned on this site they'll be in Brazil next week so there should be a clearer idea if they can add something else in addition to the Ni assets, the REE and the recent lithium assets. If SRSP can land large Angolan production when they really didn't have any other assets then there's certainly hope for CRCL.

Regards,
Ed.

Mark,

True we broadly know the operation in Utah, but the specifics could make a lot of difference. Like has the 2500tn mined at the end of last season been sold. Has the increase ROM reduced the cost per tn, has the margin also improved with the rock phosphate price? Are sales at the start of this spring season matching or exceeding the strong sales by August last year and ultimately when are they going to hit their current 25k tn target? Hopefully get the answers to those soon, we had an ops update early April last year.

Regards,
Ed.

Mcfcnige,

"Whilst primarily focused on buy and build opportunities in its chosen extractive industries and geographies, the Company also confirms that it is also exploring various potentially transformational transactions in other sectors, which could potentially repurpose the listing. The Company will continue to consider these as they originate, focused on providing access to capital through a listing to existing revenue and cash generating businesses."

From the ops update they suggest moving into oil and gas and mention Brazil. If it turns out to be a cash generative business with reserves and production then given CRCL's status as a small cap non-producer its likely to require an RTO and therefore suspension and admission document if it were a transformational transaction as described from that recent update.

Regards,
Ed.

Also this may turn out to be a rubidium asset if there are commercial quantities there, as that stuff is worth a lot more than lithium per kg.

Regards,
Ed.

Dicko,

The lithium asset maybe, we'll just have to see, but if Riversgold hit REE's in Mt Weld I don't think they'll slip that into IBM, they'd be mad if they did.

Regards,
Ed.

Dicko80,

The only assets involved with IBM at the moment are the Ni assets and the Argentinian lithium brine assets. With CRCL also farming out the REE asset at Mt Weld CRCL have their hands free, well they did until they got the option over this additional asset. CRCL have been repositioning themselves away from those high risk gas peaker plants into much higher upside assets like the Ni and Mt Weld assets. They're now a much more attractive proposition than they were at 2p. No wonder the Chinese wanted in here at a premium. It'll also be interesting to see what JP brings to the table for oil and gas too as SOU was one of my top 5 gainers years ago under his helm, back when SOU had assets in Indonesia. Share price went from 0.6p to around 6.25p. Brazil onshore oil and gas could be lucrative especially if its an RTO of a producing asset. All this for a cap around £2m.

Regards,
Ed.

Wwal,

I don't believe that Art stumbled across the big discovery by chance. When you look at the PRB there are lots of companies producing a lot of oil from the Frontier formations. By reading over the Cuda information at the time of the Atomic acquisition it was clear to many on here that the potential of the Frontiers, Lakota and Dakota formations were large (at least several hundred million bbls). Granted while Art at the time didn't know the exact scale of the discovery its potential as large was known by our neighbours and the broker reports on the Cuda site. Art just went on to prove that with the Fed Deeps discovery well and subsequent results now at cole creek. The logs turning up for the CCU wells showing oil in the returns etc was also further evidence of this potential, that may have been stumbled across by chance. Also fortunately the large discovery has been reported by the company and RS as enormous potential from just part of the licence area. So from what I can see its a combination of knowing the large potential and being fortunate that its turned out to be potentially over 1bn in place rather than several hundred mmbbls. Also by good fortune was the fact that it attracted in a large recogmised company that Art had worked with before and are working on detailed terms, according to Art.

So come on Art get the show back on the road again with JV/RBL.

Regards,
Ed.

Duster,

Yeah that is a question that many of us have been asking. He's turned this into last minute Larry. Hopefully he knows a lot more about the current position of the term sheets and JV than the rest of us do. Given the current size of the 2P (last audited by RS in July) under the conservative NI51-101 you would imagine that the RBL shouldn't be a problem. Lets wait and see. If a basket case like SRSP can suddenly conjure up $330m then there's certainly hope for Art yet.

Regards,
Ed.