UK Investor Magazine Podcast with Kiran9 Jan 2023 10:12
In case you missed the latest podcast with Kiran on Friday:
https://ukinvestormagazine.co.uk/progress-at-amapa-lithium-and-rare-earths-with-cadence-minerals/
[Interviewer]
Fantastic. Right, Kiran, let's now move on to the rest of the portfolio. So, you know, let's look at, we can look at everything, but actually just before we do that, I've got some numbers scroll down here on Amapa. Of course, you mentioned there the 949 NPV with 30% stake. You know, there were some thoughts that I had before we recorded this about the valuation and the current valuation of cadence and then the overall valuation of Amapa and, you know, it appears that there's a disconnect. You know, if you look at that figure, you know, the $949m, you know, how much of that can be translated down at this point into a potential book value for cadence? And, you know, how much do you feel there is a disconnect between that value and the valuation of the equity at the moment?
[Kiran]
....
"Where do we see the value? Look, I certainly agree that this is undervalued. You know, WH Ireland, I think attributed, I might misquote, but people can have a double check of it, you know, just on this asset attributed around the 30p valuation on the results of this PFS to cadence. Then we have our other assets, which our book values are very clear to see, and I don't even need to speculate the valuation. The book value of our public portfolio is somewhere in the region of five million or there or thereabouts. We have Hastings Technology Metals, which we've got to deal with them, which is attributing stock in theirs of about 5.1 million. And then you have Evergreen, which we've got stock of theirs of 2 million. So just on that alone, we're sitting at 12 million. Forget about the value that Amapa iron ore would add to us. And then of course Sonora, which book value, how much we paid for it is another 3 million. So it certainly looks like the market is certainly not ascribing any value based on a PFS to cadence. And I think, you know, as we see a change in the economy, you know, as China is coming out of its COVID, whether we think this is an advisory policy or not is a different matter, but we will see China coming out of its COVID restrictions and we will see a growth in the economy and stimulus across the board. So I think China is where the large amount of the market is. I think 70% of the iron ore market, that's going to drive iron ore prices. And I think that will drive an improvement in our share price as we move forward during the year. I would certainly, you know, I'm not going to be investing at these prices thinking that it's going to go up a very small amount. I certainly feel there's substantially more value that we've had in Cadence."
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