Member Info for EV_Bull

Cadence Minerals from 17 mins
https://audioboom.com/posts/8051701-alan-green-discusses-ab-dynamics-corcel-cadence-minerals

https://www.asktraders.com/analysis/cadence-kdnc-shares-rose-on-the-amapa-pfs-update-whats-next/
Cadence Minerals shares edged higher on Amapa pre-feasibility study update.
The miner just appointed Wardell Armstrong International as the PFS manager.
Many investors and analysts expect the PFS results to be highly positive.
"Cadence shares look attractive at current prices and could head higher in future."

1) the statement from KM is that we can stick at 27% (see my earlier posts), therefore that leads me to conclude that we can transfer that right because "that can be a new partner going into the asset at the asset level, so we'd still have our 27 percent or of course you know we could go up to 49 percent, it really depends on the economics, the great thing is we have choices here"
2) KM has said he expects the 49% will be called upon leading me to conclude Indo can't / won't put the money up.

In my opinion: I expect that if we don't want to invest to take 49% then if we are able to find someone that will, we can transfer that right to a third party and retain our 27%. Only in the event we couldn't find someone willing to invest could that 1.5x clause be invoked, my guess is that Indo don't have that kind of money lying around to deploy and buy our stake even if they wanted to.

https://youtu.be/5iOT8agwzIY?t=1250
and you know in terms of the question about financing depending on different commodities and risk profiles mining projects are financed by a mixture of project debt and project equity typically 60 to 70 percent of it being debt and the rest being equity our investment structure uh by our first right of refusal allows to increase our stake to 49 which I estimate and I hasten to add that I estimate would be between 20 and 30 million dollars to take us to that point and that will of course change that could change depending on negotiation we can choose to participate or not and that decision will primarily be based on the opportunity cost of capital and the expected return on our investments if we choose not to invest then of course we retain our 27 however if more equity is needed we could be diluted further if there's more equity needed in the project we could dilute it further

3)What we’ve seen now is, it’s obviously all shipping price dependent and iron ore dependent, is that we will start to ship again and we’ll announce when that happens, and we’ll ship to pay down the banks as per our agreement, about 90% of the net value of that goes to pay down the banks and pay down the credit value of that and 10% can be utilized for the company and its development.
So, when is very much dependent on when we see enough margin, and lock in that margin, to typically pay down the banks, in a linear manner and ensure that in two years’ time, which is about the timeline of paying the banks, the bank’s debt is completely paid and we’ve also generated some revenue to invest in the equity of the project from that stockpile.

https://www.reddit.com/r/CadenceMinerals/comments/sngah2/comment/hwd023g/

CEO Kiran Morzaria has stated the below in a 2020 interview available here: https://youtu.be/mGhDQjFgP7k?t=541

"we'll be looking for project funding on or around 2021 of $24 million, that will be project equity, that can be a new partner going into the asset at the asset level, so we'd still have our 27 percent or of course you know we could go up to 49 percent, it really depends on the economics, the great thing is we have choices here and then you look for one hundred and forty to one hundred and fifty million worth of debt financing which would fund the recommissioning"

This has been stated more recently (Jan 2022) as estimated $20m-$30m to go to 49% https://youtu.be/5iOT8agwzIY?t=1273

MacArthur Up 17%
EMH up 12%
CLA up 25%

FS* not PFS
also their Maiden Ore Reserve for Lake Giles Magnetite Project
https://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=02501062

https://www.asx.com.au/asxpdf/20220321/pdf/45767f9j59nd4m.pdf
Well this should put things in perspective for some when you compare Macarthur to Amapa. Amapa will have 75% more production for 1/3rd of the upfront capital cost and a lower cost workforce, our own railway and port. One day the market will wake up to this opportunity!

Certainly good to get an update from Ganfeng and sounds like they will be pressing ahead.

(Dev can also be Gerald Metals)

She's booked for DEV btw GRAND DEMETER due in on the 23/03/2022: https://shipfix.com/ship/grand-demeter_IMO-9445174

Ganfeng breaks it's silence in Mexico quoted as saying "We are going to continue in Sonora because the laws of Mexico allow lithium to be exploited"

"We are not thinking of abandoning Mexico; we are confident that the Sonora project complies with all laws and is going to be very positive for the country and the region," Ganfeng said through it's official communication, in a message totally opposed to that of the Mexican government, who in the voice of AMLO assured that he does not want " conflicts between the powers" because of the mineral.

https://www.reddit.com/r/CadenceMinerals/comments/tgyvn2/ganfeng_we_are_going_to_continue_in_sonora/

https://shipfix.com/ship/grand-demeter_IMO-9445174

No, not 12 months, look at the timeline, Estimated Cadence first right of refusal (49%)
https://www.cadenceminerals.com/wp-content/uploads/2022/02/Cadence_PPT_Feb2022.pdf

Targets
Amapa Iron Ore
• Completion of 27% vesting into asset
• Completion of Pre Feasibility Study
• Re-establish joint operating agreement with Tucano – to increase
mine life
• Define value of remaining 22% first right of refusal
• Crystallise value on at least one of our non-public assets

look around, the entire market is being smashed, I believe this is worth multiples of where we are today, small caps always sell off more, look at EMH it's no different, time will tell...

My understanding is that our right of first refusal could be transferred, that is if we don't want the 49% we would offer it to another investor that does want it, failing that then Indo could buy the shares back for $9m, I believe this is unlikely to happen though. Listen to the YouTube links I posted if it's not clear.

For those wondering about the 49% option - https://www.reddit.com/r/CadenceMinerals/comments/q800za/amapa_details_on_the_49_option/

CEO Kiran Morzaria has stated the below in a 2020 interview available here: https://youtu.be/mGhDQjFgP7k?t=541

"we'll be looking for project funding on or around 2021 of $24 million, that will be project equity, that can be a new partner going into the asset at the asset level, so we'd still have our 27 percent or of course you know we could go up to 49 percent, it really depends on the economics, the great thing is we have choices here and then you look for one hundred and forty to one hundred and fifty million worth of debt financing which would fund the recommissioning"

This has been stated more recently (Jan 2022) as estimated $20m-$30m to go to 49% https://youtu.be/5iOT8agwzIY?t=1273

http://irservices.netbuilder.com/ir/cadence/newsArticle.php?ST=REM&id=31142822768995648

Cadence CEO, Kiran Morzaria, commented: "I am pleased to report that following the recent oversubscribed fundraising, we have formally completed phase two of our investment into Amapa to acquire 27%. I know our new and longstanding shareholders share our vision for Amapa, and I am pleased to report that the mine rehabilitation plan is progressing on schedule."

"I look forward to reporting back to you on further operational progress in the coming weeks."

https://www.bloomberg.com/news/articles/2022-03-09/amlo-s-power-bill-stalls-as-mexico-lawmakers-demand-key-changes
"Leading opposition lawmakers in Mexico say they won’t back the government’s nationalist electricity bill unless it changes significantly, reducing chances one of the president’s most ambitious proposals is approved in congress any time soon."