Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
TheTruth - POW is fully funded, 1m pounds raised recently + stakes in other companies like KAT
the cash on hand is enough to fund an early drill program + company does not do dilutive placings unlike vast majority of AIM - plays to the best-in-class standards when raising capital (last placing done with no discount)
bumhands - agreed
this is the deadline pre-suspension forms I believe
I don't think buying in the last few days is subject to 8.3s
According to an earlier post potential bidders are likely to be prevented from buys shs in open market by NDAs and regulations of Takeover Code
Way I've understood things to far, Palladium occurs in slices aka reefs - like a plate of chocolate
We've got 2 strong intersections at existing 2 license mining areas (Loipishnyune and West Nittis), but that only intersects a small part of the overall reef
The reef extends will into flanks, and based on historical mining + drilling that's how our BOD is sure re we are looking at 15moz + 4moz in flanks de la flanks + another massive area 20moz in older license areas like Volchetundra (Wolf Tundra) to a total of 40moz
Another huge factor is not just geology but the fact that almost no infrastructure build out is required which is why capex is ultra low:
- existing smelter net door who would be super happy with extra revenue
- 3km from a town - road is super expensive to build so that saves hundred of $ millions on road capex
Moneymaker - I am relaxed about topping up here
An M&A deal will be done with a premium (=RockRose Energy is a great recent example). A bidder will be accumulating shs in open mkt before making a bid - my guess is that they'll try to get to 30% threshold mandated by UK TAkeover Code when making a bit becomes mandatory.
this flow to 30% will keep pushing the price up (+flanks will be a catalyst) so I think we will blow through 30p in no time
Besides - no one is selling except a profit taker here or there, but not in size. Then after 30p, we ll start seeing possibly either more catalysts or a bid released taking us to the 70p+ zone
I strongly suspect the timing of return to market is (very) strategically timed by EUA and UBS!
Expecting flanks to drop very very shortly. They also have enough cash for a drill program on the flanks from the WK cashflow, without any JV/external funding!
Thronegames - you're right re exact figures
Numbers I gave was just a rough estimate re how to put an approximate order of magnitude on the valuation
I did a full on valuation early on during suspension (the Gulag Capital excel file) comparing all of the key methods (trading comps, M&A comparables, DCF and EV/resource), I ended up arriving at the midpoint between these methods of around 70p. All of the major recent valuations put value between the 50-80p range (GMF782 puts it at 78p, ACF at 54-60p)
Same here re 'not used to such returns' ! I think might be one of the fastest multibaggers on record in fact
I sold a small clip (11k shs) on the open to 'feel the cash' and then ended up adding quite a bit over Friday. Am holding till the end here!
Valuation is fairly straightforward - rule of thumb shortcut is up to 4% of in situ value (this is shortcut often applied for gold projects, PGM assets trade at a premium because they are scarce and more competition from acquirors)
4% * 1500 (basket price) * 15moz = $900m on the low end valuing this as a gold asset
EUA shld trade at a substantial premium to the valuation of a similar-sized gold deposit because:
- only PGM asset globally with near-term potential to make it to production
- fully permitted + financing locked in
- close to infrastructure (incredibly rare - tons of $ saved on building roads, smelter etc)
hence the $1.5bn+ price target (70p+)