George Frangeskides, Exec-Chair at Alba Mineral Resources, discusses grades at the Clogau Gold Mine. Watch the full video here.
Https://www.nacion321.com/gobierno/mas-de-80-empresas-europeas-estan-interesadas-en-plan-sonora
The Ministry of Foreign Affairs ( SRE ) reported that more than 80 European companies are interested in the Sonora Sustainable Energy Plan , which seeks to boost trade and attract investment to Mexico.
Look at the value of EMH to KDNC when it was £1/share and check the Iron Ore price and this was also prior to Mex Gov nationalising (and this was also prior to the war which tanked a few stocks) 30p was good value at that time but things changed as mentioned prior. 30p is probably about fair value now according to Edison so it's a 5x from here, how is that not a strong buy?
Edison's view: https://www.edisongroup.com/research/a-mispriced-miner/32481/
Cadence is a relatively small investment company in a sector that is dominated by large capital, and therefore will not be on the radar of many professional and private investors who follow mining. It is also relatively small in a corporate sense, so management is focused heavily on de-risking its assets and creating long-term value. It is in this context that the de-risking and growing investment stake in Amapá has probably been overlooked by the wider market, and led to the discount emerging.
In terms of catalysts, the progression of Amapá to full DFS status would lead to a reduction in the discount we apply (and the discount that is applied by the market). The costs and timing of this are uncertain, but the orebody is well understood given its prior operating status, so the progression will centre on licensing issues and further engineering studies. Cadence could progress this itself (and has recently secured mezzanine debt funding to achieve this if it wishes) or bring in potential partners at the asset level.
The development and progression of the Sonora lithium project is more uncertain given political uncertainty in Mexico (although we understand that Sonora is not affected by the changes in Mexican legislation given its licensing status, however the market is likely to continue to treat Mexican lithium assets with some caution). Our valuation of Sonora allows for this risk, so any progression to full operation by Ganfeng would be a clearly positive catalyst. The lithium market will need assets like Sonora in the longer term, and there is potential for this asset to be larger than the BFS metrics on which the takeover was made and our valuation is based.
This is the catalyst TJ_MAC:
"Cadence and Its joint venture partners have agreed that the lowest risk and currently best commercial approach to developing this project is to bring on a highly experienced mining operator or EPCM contractor as a joint venture partner, and we are working towards this goal. We currently have three interested parties reviewing the data room in this regard. However, the above strategy does not preclude the option for our joint venture company developing the project or embarking on trade sale of the project."
Not sure why one would sell prior to news on that as it's priced at zero now so big upside from the above.
Https://www.youtube.com/watch?v=3v1cd5i6P14
For Bynoe: "we're gonna drill our best targets early and hope for discovery later this year if we get the permits or early next year"
Results of the ANT trial at BP33 (Figure 6) were an outstanding success with the BP33 body imaged as a distinct low
velocity anomaly, showing excellent correlation with the pegmatite body interpreted from drilling, including the
dyke-like shape of BP33 (Figure 7 - bottom). The survey was done with 200 m-spaced stations on an approximately
square grid, but with a reasonably short baseline of 1.5 km which meant velocities could be modelled to 500 m depth.
The model highlighted a number of other low velocity zones (Figure 7 – top right), which represent new pegmatite
targets that have never been drilled.
https://static1.squarespace.com/static/553f799ae4b0306c99f97080/t/64a51085876d4d17c3cdb33e/1688539275480/ANT+for+Lithium+Pegmatite+Exploration+-+Bynoe+Field.pdf
By the way...
"EverGreen priority ANT targets show similar low velocity features as Core Lithium's BP33 survey."
"Core Lithium has received approval for early works at the BP33 underground mine at its Finniss lithium project in the Northern Territory."
https://www.australianmining.com.au/a-new-mine-for-finniss/
https://www.londonstockexchange.com/news-article/KDNC/corporate-update-evergreen-lithium-ant-analysis/16018020
Key word is "if", who knows what the drilling results will be, but IF we get results similar to BP33 on Core's side they (EG1) will absolutely fly. BP33 is very close to EG1's tenement so it clearly has promise. Core was a 20-30x over the past 3 years.
BCN would have been down significantly if it was still listed based on the nationalisation agenda so be careful what you wish for.
HAS and Sonora from Lenigas days is what I'm referring to, Evergreen and EMH seem to have worked out fairly well although would have been better to sell around the £1 mark but it could get back up there and beyond post DFS.
I am not so interested in the past as you Bannor but more interested in the future with Amapa, aware of salaries and dilution thanks I have seen far worse. The NAV is way way higher and that is what I would base underlying performance on and it's BoD's job to start realising that NAV so lets hope they can.
You absolutely should compare this to a mining or lithium ETF and on that metric to date the share price performance has been poor, current management didn't choose all of the assets so can't give all the credit/blame but they did choose the Amapa project and that is what will decide if the company is a success. Somewhat unlucky with Mex gov on Sonora and the war / cost of living / inflation. The ~$1bn NPV is compelling and we have to see what kind of deal management are able to do before judging if it is a success or not, the SP is not reflecting the underlying value which presents an opportunity for investors at this level. I have my own opinions on what the company should do longer term regarding shareholder returns but I think we need to see the outcome of Amapa first.
Certainly not much liquidity, with a retail held stock the economic cycle and interest rates are a bigger factor. Most are investing their pensions and some are forced sellers to pay day to day living costs. Contrarians will get the bargains and reap the biggest rewards ultimately.
Https://www.tusbuenasnoticias.com/noticias/buenas-noticias/2023/07/10/21523-gobierno-de-sonora-busca-atraer-inversionistas-de-japon-presenta-plan-de-energia-sostenible
Government of Sonora seeks to attract investors from Japan; presents Sustainable Energy Plan
The governor of Sonora, Alfonso Durazo, reported that the Sonora Sustainable Energy Plan was presented to 1,500 companies in Japan.
Https://www.telegraph.co.uk/business/2023/07/10/uk-companies-are-cheapest-in-world-gloomy-view-of-britain/
UK companies are cheapest in the world because of ‘gloomy’ view of Britain, says Morgan Stanley
Https://miningdigital.com/articles/neo-begins-building-europes-first-rare-earth-facility
HAS has a stake in NEO
Https://www.afr.com/companies/mining/rio-hunts-in-the-outback-for-lithium-20230711-p5dnff