RE: Amapa valuation17 Jun 2022 10:28
Clearly we need to get the PFS done and clear up the 49% ROFR (incl the buyback clause), China is desperate to get away from Australian ore so I don't think it will be hard to sell some or all of the project at a significant premium to what it was purchased at. That is how value will be realised and the share price will follow. The current market conditions are sub-optimal, can't blame management for that. Management need to deliver on realising value from the assets not PR in my opinion, the belief and value will come when shareholders can see how they are going to get a return from the investments Cadence has made, that means deals with Ganfeng, Hastings and Indo Sino, LT/LS deal completion, those can all produce massive returns if successful. The current decline is only an issue if needing to raise, market would like to hear that that is not necessary and there is a different route to 49%, for example can we flip it on to another buyer for a profit, perhaps via a short term loan/sale agreement, there has also been talk of Indo Sino also wanting to realise value, perhaps through an IPO of the Amapa project, these are the things that will create real returns, we all know £20m doesn't do this justice at all but that is where the market is today, EMH is suffering a similar decline as are many many other shares.
The first whiff her of talks with Ganfeng, Glencore, Tesla or some other suitors and things will change rapidly.
Remember:
https://www.benchmarkminerals.com/membership/exclusive-ganfeng-eyes-us-oems-for-strategic-stake-in-mexican-lithium-project/
2012:
At least four suitors including commodities trader Glencore GLEN.L are in the bidding process for miner Anglo American's AAL.L majority stake in the Amapa iron ore operation in northern Brazil, according to sources familiar with the matter.
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