Member Info for euclid55

Excellent post

But what are the recovery factor, cpr shows low RF%

Plus NPV value need’s divided by 10B shs in isshe

Attractive Erfelden commercial Net-back metrics of ~US$58 per barrel @ $80/bbl at peak production*

PBS reservoir 2C net prospective resources of 17.0 mmbbls with a COD of 50%*

• The Buntsandstein reservoir of the Steig Deep prospect has a 2U prospective

resource of 16.0 mmbbls with a COSg of 30%*

https://beaconenergyplc.com/media/1114/20221222_corporate-presentation_v5.pdf

Taken from the BN

Potentially 17mmbls in the Pechelbronner section

The deeper Pechelbronner discovery (c.800m depth) is higher risk but

potentially much larger. Flow was achieved (c.160 bbls/d), but drawdown pressures were high.

If the reservoir can be shown to produce commercially the horizon may contain as much as 17 mmbbls in the 2C case (13-22 mmbbls 1C-3C).

Taken from the rns

The SCHB-2(2.) well has encountered good quality oil-bearing reservoirs in the Meletta-Schichten ("Meletta") sandstones and the Pechelbronner-Schichten ("PBS")

The well has encountered oil bearing reservoir in the Meletta and PBS sandstones, both shallower than predicted with the PBS being a thicker interval with more sand and of better quality than pre-drill estimates. These results imply significant upside to the reserve range assigned to the Stockstadt Mitte segment in the CPR published by the Company in December 2022,

Steig comprises two Tertiary reservoir sections at the Meletta and Pechelbronner stratigraphic levels. The shallower Meletta formation (c.600m depth) is thin, but with a suite of modern wireline logs showing oil saturation, and a well test of c.60 bbls/d proving mobile oil, is low risk.

SGS estimates between 0.5 and 2.2 mmbbls recoverable in the Meletta sands, with a best case of 1.6 mmbbls. The deeper Pechelbronner discovery (c.800m depth) is higher risk but potentially much larger. Flow was achieved (c.160 bbls/d), but drawdown pressures were high.

If the reservoir can be shown to produce commercially the horizon may contain as much as 17 mmbbls in the 2C case (13-22 mmbbls 1C-3C). Together, SGS classifies Steig 2C resources as ‘Development Unclarified’, with a chance of development risk factor of 50%.

Page 11 of the Broker note

Https://beaconenergyplc.com/media/1124/230220_bce-shining-light.pdf

We estimate some US$18m EBITDA in 2024, falling to

US$10m in 2025 (as a result of the accrued earn-out royalty – see transaction details above),

before rising once more to c.US$11m in 2026. We expect the capex programme for 2023 to

total US$9m, which will be covered by the funds from the placing and operating cash flow. Next

year the budget is expected to total US$6m, leaving around US$9m of free cash flow

On an NPV10 basis, we value the 2P reserve base at US$51.6m, or c.US$13.6/bbl, versus the

implied acquisition price of US$5.2m, or US$1.4/bbl. In valuing the 2C resources we have

applied a 25% discount (i.e. risked at 75%), to reflect the fact that these barrels are further from

production, taking our 2C unit value to US$10.2/bbl.

Applying SGS’s commercial chances of success for each respective project results in a risked valuation of US$12m for Schwarzbach South, US$14m for Graben and US$95m for Steig. After corporate adjustments this results in a

Core (2P) NAV of US$52.8m, and a Total (2P+2C) NAV of US$174m

Core 2P = £42m – Total 2P + 2C = £137m

See page 6 on the broker note below:

https://beaconenergyplc.com/media/1124/230220_bce-shining-light.pdf

Hi Richard, why would they have to reach a cap of £30m on their first asset ?

How can it be undervalued when it doesn’t own any assets- and just has a small amount of cash balance?

Not that I know of, no loans or debt

Read the 3 Oct 2022 RNS - see extract below

Given this interest out of China and the relatively short period to complete this test work over the next 6-9 months the Company has taken the decision to postpone its plans to build an on-site pilot plant facility of 2,000tpa at Orom-Cross. Binding offtake contracts to purchase Orom-Cross graphite would likely remove the need for a pilot plant, as the principal rationale for its implementation was to provide product to would-be offtakers to enable them to assess its viability for their own uses.

A direct impact of this decision is that there is no longer a requirement to raise substantial cash (circa US$10M) in the near term via the equity markets to fund the on-site pilot plant.

https://www.investegate.co.uk/blencowe-resources--bres-/rns/strategic-party/202210030700065047B/

Is there a Broker note?

Dr. Heinz Schimmelbusch, AMG’s CEO, commented, “AMG’s investment in Zinnwald is a valuable strategic opportunity. As a partner with Zinnwald, together we will pursue a definitive feasibility study for their project in Eastern Germany. Establishing a raw material base in Germany close to our Bitterfeld operations has obvious logistical and strategic benefits for AMG, and we look forward to working with Zinnwald on this exciting project.”

https://amg-nv.com/investors/press-release/amg-advanced-metallurgical-group-n-v-announces-25-shareholding-in-zinnwald-lithium-plc/

Zinnwald Lithium Plc
@ZinnwaldLithium
#ZNWD is looking forward to the unveiling of the EU’s new #CriticalRawMaterials Act on 8 March aimed at securing the bloc’s supply of critical raw materials needed for #EV production including lithium:

LONDON, Jan 25 (Reuters) - European Commissioner Thierry Breton urged European financiers this week to provide more funding to suppliers of minerals needed for the energy transition, as the European Union prepares its Green Deal industrial plan.

The EU is due to unveil its Critical Raw Materials Act on March 8 to secure the bloc's supply of critical raw materials including lithium, cobalt, nickel, manganese and graphite needed for electric vehicles.

https://www.reuters.com/business/sustainable-business/eu-urges-european-banks-step-up-funding-critical-minerals-2023-01-25/

Or could be

Https://chartwellip.com/staff/mark-d-tindall-cfa/

Mark is a Portfolio Manager for Chartwell’s equity investment team managing the large cap growth strategy. Prior to joining Chartwell, Mark was a member of the equity team at Columbia Partners and served as a co-team leader on their large cap equity portfolios. Prior to joining Columbia Partners.

Https://chartwellip.com/staff/mark-d-tindall-cfa/

could be Mark Tindall CEO of Tana Africa Investment Managers

Tana is managed and advised by a team of professionals with many years of Africa-specific experience in private equity, management consulting, merger integration, and transaction services.

Https://www.tana-africa.com/team/

Below extract taken from the recent BN report

SOC and PCC By-products Reduce Unit Costs

The processing plant has been designed to reduce/remove acid consumption (and disposal) and use potassium (K) units for the precipitation stage thereby allowing the production of SOP as a by-product (c. 30% of K units originate from the ore). The process will also produce precipitated calcium carbonate (PCC) for the paper industry.
Both have large markets within Europe and should be readily saleable.

Based on an annual production of c. 12ktpa LiOH, the mine will produce approximately 57ktpa of SOP each year which at $950/t (c. EUR875/t) price assumption adds $54m pa in revenues (or 18% of total). According to our modelling this brings the cash cost down from $10,800/t LiOH to $6,120/t LiOH making the Project highly competitive versus it peers

Perhaps some investors have finally noticed the below extract from the last operational update in Nov 2022

drill results support the plan to consider the Albite Granites (previously referred to as "Ore Type 2" in the recent Preliminary Economic Assessment ("PEA")) for the Mineral Resource and future mine plan, with potential to materially increase the total Mineral Resource

One of the goals of the ongoing in-fill drilling programme is to materially increase the MRE, which could, in turn, accommodate greater mining capacity for an expanded Li-product output. Historic estimates quantified the tonnage potential of the Albite Granites alone at above 200Mt, an estimate that the Company is working to verify.

Https://www.investegate.co.uk/zinnwald-lithium-plc--znwd-/rns/operational-update/202211230700042702H/

Sorry meant June 2023

£140,000 cash burn a month so expect another placing around June 2024