Member Info for EV_Bull

Apr-May 2021 26p-31p
https://www.lse.co.uk/rns/KDNC/first-iron-ore-shipment-from-amapa-since-2015-tc6c4vu5xq87xj0.html

There is a substantial profit margin on the stockpile at current rates my calculations suggest possibly $10-$15m on top for Dev after the banks are paid off. We might be able to lock in the rates this time.

Starting at 21:45
https://youtu.be/6sCMiBr3tfk

Biden meeting with Trudeau plenty of mention of critical minerals.
https://youtu.be/s2izKFusxAQ

AMLO in 1 hours time

Anything he knows that is price sensitive would need to be announced. Which I think is why in the PFS it was stated we are in negotiations with strategic investors. It is also the case that Ganfeng are directly negotiating with the Govt so Cadence wouldn’t be party to that.

My personal expectation would be that any deal would include enough cash for us to get to 49% of Amapa, could be part cash part royalty or something of that sort. Fingers crossed.

@roger65 from this interview last week:
https://www.reddit.com/r/CadenceMinerals/comments/104ta5q/progress_at_amapa_lithium_and_rare_earths_with

Read the last two lines very carefully!

[Kiran]
The next one, which people are a lot of talking about is the Sonora Lithium Project. That again, multi-generational, I think it's, you can look up its size of deposit. Again, we have a license and it's owned by Ganfeng, who bought it out from Bacanora a while ago. We have a license that gets mined, a 30% of the license that gets mined later in the mine life of the asset. But I think the many things that people have been talking about or asking about is certainly on the bulletin boards is, you know, Mexico went through a period of transition in which they sought to sort of pseudo-nationalize or have a government institution to run all lithium projects, all new projects. And there was a lot of speculation how this would affect that. I certainly, you know, we've obviously been in discussions with Ganfeng. The opinion from their side, and we certainly concur with that, is that as these licenses were already granted, they are still valid and they, you know, they should be developed. It's a substantial asset with a multi-generational and strategic asset. So, you know, it's owned fundamentally by Ganfeng. We are joint venture partner on part of it. And we certainly believe that it is, the licenses are still valid. And as the Mexican ruling was effectively, that's for new licenses. So I really can't say much more than that because, of course, anything that Ganfeng or discussions that occur between them and the government are commercially sensitive. And once there is something that is significant and price-sensitive, we will announce it, and we'll make the public aware of it.

@roger65 if LitioMx wants to have any lithium to sell in the next 5 years as they state then the only way is via the Sonora Lithium project so any news around that such as a deal with Ganfeng is what we could hear.

Ganfeng is in discussion with LitioMx and already said they are looking for strategic partners e.g Tesla, Ford or GM on Sonora, this could be massive for Cadence as any scaling up means our areas come in to play much sooner and become more valuable.

Well it gives AMLO an excuse to show he's listened and backpedal slightly from the 100% nationalisation agenda too. They need the investment $$$ and knowhow.

Looks to be timed to coincide with this:
"2023 will start with a meeting to establish the operation plan for Litiomx in Sonora, including its vision and objectives," said Durazo about the gathering will be on Jan. 12 , 2023

Here we go.....
https://www.sdpnoticias.com/negocios/justin-trudeau-recomienda-a-amlo-que-inversion-privada-pueda-extraer-litio-y-petroleo/

Justin Trudeau , Prime Minister of Canada, recommended to President AMLO that private investment be able to extract lithium and oil.

It should be remembered that President AMLO published the decree so that lithium is the property of Mexico and can only be exploited by the state through the Lithium for Mexico organization.

However, in November 2022, AMLO announced that companies from the United States and Canada were being considered to participate in the construction of infrastructure for the exploitation of lithium.

In this sense, the Prime Minister of Canada, Justin Trudeau – who arrived in Mexico on January 9 for the North American Leaders Summit – made a recommendation to AMLO.

What did Justin Trudeau say to AMLO about the fact that lithium and oil can be extracted by private initiative?
During his visit to Mexico, Justin Trudeau said that the Mexican government must allow minerals such as lithium and oil to be extracted by private initiative.

Therefore, he recommended that AMLO grant this option, since he pointed out that in this way North America would become the leading region in the production of electric cars.

In this sense, the Prime Minister of Canada assured that his nation is a reliable partner in the commercial relationship in the region, for which he offered his mining companies to take advantage of the aforementioned minerals.

Since he pointed out that the exploitation of critical minerals such as lithium and oil will not only allow the use of clean energy through the development of electric cars, but will also generate jobs.

Supposed to be 21:30 tonight GMT according to this website
https://www.ruptly.tv/en/events/202301102130-LIVE13011-Biden-Trudeau-AMLO-hold-press-conference-following-trilateral-meeting-in-Mexico-City

Biden, Trudeau, AMLO hold press conference following trilateral meeting in Mexico City
Mexico, Mexico City
US President Joe Biden, Prime Minister of Canada Justin Trudeau and Mexican President Andres Manuel Lopez Obrador (AMLO) will meet for trilateral talks in Mexico City, on Tuesday, January 10.

During the North American Leaders’ summit, the three are expected to discuss economic stability, climate change, security and immigration, among other topics.

It will be the first in-person encounter between them since late 2021.

Key assumptions: Long-term average price for 62% iron ore concentrate of US$95/dmt this is currently around $117/t or 24% above.
https://tradingeconomics.com/commodity/ironore62
This roughly doubles the NPV to $1.8bn by my reckoning at current FE prices going off the sensitivity analysis
https://www.cadenceminerals.com/wp-content/uploads/2022/12/Figure-1.3..png
Truly staggering

"In what some observers see as a bid to defuse the energy dispute, AMLO has touted a grand plan with the US to produce lithium, electric vehicles and solar energy in the northern Mexican state of Sonora, in part to serve the semiconductor producers that Washington plans to draw to Arizona, just across the border."

Can't wait to hear about this.

The dialogue between the two leaders, which the White House mentioned tonight, also included two economic issues: the supply chain, especially with regard to semiconductors, and lithium from Mexico as a key input. And "the economic opportunities created by North America's clean energy transition, including investments in renewable energy and tax credits under the Inflation Reduction Act to increase the production of batteries and electric vehicles."

Well worth watching
https://www.reddit.com/r/CadenceMinerals/comments/107b6v5/kiran_morzaria_of_cadence_minerals_2022_in_review/
"possible DFS partners" ... "we are already, as any company at this stage would be are in discussions" .. "and that's gonna be my focus over the next 6 months is pushing those forward and you know maybe getting to MOU stages and so on and so forth with various parties"

[Interviewer]
Thank you. So just one final question here on Amapa, Kiran, before we move on to the rest of the portfolio. From my understanding there was a number of stockpiles at the Amapa project and there was some shipping activity last year. I mean, is that something that's ongoing? Is there any update on what's happening there?

[Kiran]
Yeah, absolutely. So for those that don't know or don't remember, apart from this whole pre-feasibility study, there was a whole, because it was a receiver ship, there was a whole legal process called equivalent of a chapter 11 that we had to go through to gain ownership of this asset which we actually only got the full, our JV company only owned 100% of this asset, completed roughly this time last year in fact. But as part of, and that was part of that was to settle with the secured bank creditors. So there was a historic liability with some bank creditors that lent money to redevelop this asset historically and that needed to be paid back or would need to be paid back. We agreed a settlement which was signed and last year, well, sorry, last year was signed in December 2021. And that then precipitated our ownership and to repay back those bank creditors, we were to use our stockpiles. And last year, those, you know, the margins, we still had the, you know, we had the effect of slowing down sort of economy instead of iron ore in China and COVID policies there re-dropped iron ore prices. And in addition to that, we still had this backlog of huge amounts of high shipping rates. That has changed, particularly in the last three months and we're seeing margins that will, that are improving. Now, the whole way that this works with the banks is that they also, when we're selling, they have to see that there's a reasonable margin and they would like us to sell that material. And at the moment, you know, we see that there's a substantial margin and hopefully the banks will approve, continue to approve the sales and we should start seeing hopefully some shipments dependent on the banks, you know, approving them to effectively pay back that credit to the bank. So I certainly hope doing this year, we will start, if the margins remain the same, we'll start re-seeing the restart of shipment of the iron ore concentrate stockpiles at 58%, which are held at our port.

(transcript generated by AI so may contain inaccuracies)

https://www.reddit.com/r/CadenceMinerals/comments/107b6v5/kiran_morzaria_of_cadence_minerals_2022_in_review/
New presentation video

https://www.**********.co.uk/media/63bbe892fa69cdd6655326cf/?context=/listings/LON/KDNC/multimedia/
New presentation video

[Interviewer]
So Kiran, if we may, could you just talk about your ownership structure? So at the moment you have a 30% interest in the AMAPA iron ore project with a first right of refusal for sake of 49% stake. I mean, is that something that you feel you're gonna be taking up and what are the factors that would dictate your decision to take up a greater stake in the project?

[Kiran]
So I think initially we will be of course increasing our stake because we are funding the asset and therefore we will slowly increase our stake as we continue to fund the asset through these initial stages, certainly for the improvement of the PFS in terms of the trade-off study that we've already done and the expansion resource possibly. After that, and it will really be depending on discussions with potential strategic partners into the asset, we may decide that it be better to take money from those people to fund those assets rather than either divest some of our shareholding or dilute our equity position in the UK by placing. So our view is to look out for the best for our shareholders as a whole and of course we're really attracted to this asset and if the pricing was right in terms of the ability to raise capital and we had liquidity in some of the returns that exceeded our expectations of some of those assets, our raison d'etre is to invest, get a good return on investments and then reinvest to grow again and so that's what we would intend to do. It all depends on outcomes across the board but at this point in time we are increasing our stake because ultimately expenditure is still ongoing as we move on to the next stage through DFS but if there is a good opportunity from a strategic investor, there is no reason the joint venture partners wouldn't consider taking that money and for us that would prevent any further dilution in terms of funding going into it by selling off investments that we didn't wish to or raising capital in the market.

[Kiran]
The next one, which people are a lot of talking about is the Sonora Lithium Project. That again, multi-generational, I think it's, you can look up its size of deposit. Again, we have a license and it's owned by Ganfeng, who bought it out from Bacanora a while ago. We have a license that gets mined, a 30% of the license that gets mined later in the mine life of the asset. But I think the many things that people have been talking about or asking about is certainly on the bulletin boards is, you know, Mexico went through a period of transition in which they sought to sort of pseudo-nationalize or have a government institution to run all lithium projects, all new projects. And there was a lot of speculation how this would affect that. I certainly, you know, we've obviously been in discussions with Ganfeng. The opinion from their side, and we certainly concur with that, is that as these licenses were already granted, they are still valid and they, you know, they should be developed. It's a substantial asset with a multi-generational and strategic asset. So, you know, it's owned fundamentally by Ganfeng. We are joint venture partner on part of it. And we certainly believe that it is, the licenses are still valid. And as the Mexican ruling was effectively, that's for new licenses. So I really can't say much more than that because, of course, anything that Ganfeng or discussions that occur between them and the government are commercially sensitive. And once there is something that is significant and price-sensitive, we will announce it, and we'll make the public aware of it.

(transcript generated by AI so may be some minor inaccuracies)