The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
I don't expect bidding interest from the big players here - I also think nor does the market as this is so little loved presently.
The co have clearly stated they plan to go forward with the present deal and addition to that, to production. So any bidder would be going over the board's head and will only get half of Ewoyaa production unless they persuade/buy piedmont as well to get the rest.
Majors are looking for large production from large resources. It's usefull to look at what Albemarle are after. Presently they control some 300mt of resources and are after Kathleen valley's ~150m. Buying Atlantic alone would get them 17 1/2mt. A small poppy even with further exploration potential.
To me strategically for a major in their nearterm it would make more sense to take out Piedmont and Sayona (in the grant lucrative NA triangle) and leave Atlantic and the Atlantic deal as is and let them get on with it.
From what I agree appeared to be a cool response to the potential of MIIF investing, there will be no new issue on offer to them.
From that it would be very unlikely they would spend 30m in one go, instead build up a stake over time. Even some post production? Low relevance to the co imo unlike the ML, the offtake , the FID and whether any late dilution can be avoided via either the offtake covering all need or early sales from modular production being able to cover later costs for the DMS circuit.
And Youtube
https://youtu.be/tnmGtCpP8V0
Presentation pdf rns
https://www2.asx.com.au/markets/company/a11
Https://insideevs.com/news/674765/tesla-production-deliveries-2023q2/
Peidmont will be a major supplier to Tesla....
Atlantic will be a major supplier to Peidmont.....
No stopping!
SW.
Circa 180m capex was surly a cert? PFS 2mt ROM, capex 125m. DFS ROM 35% higher (flagged months back), all things being equal capex also up 35%? That takes it to 170 , inevitable add from inflation....
Damage to ALL is geared though as Peidmont pay a fixed 70m + 1/2. So now Atlantic to cover some 55m. There is no certainly that an offtaker for part/all the remaining 50% of production will be paying anything up front and if so one can bet it would then involve a big SC6 price discount.
That would dilute Atlantic's future bottom line. Alternatively it's probably share dilution to raise capex cash. Hopefully now significantly less with some modular* sales pre full DMS kit bills coming in, but I always expected some dilution somehow.
Appears perhaps many did not??
An add for the patient
*Was this choice a delay adder sacrifice for early revenue?
ATB.
OK finally got around to checking the Proactive chat with KM. He seems pretty absolute on getting early cash flow in from modular production.
https://youtu.be/NXxrXsTyceQ
Re 'Table 12 stated first shipment date' actually table 16 last line.
If they can get revenue in prior to paying all the bills for the main DMS Plant that would make a large difference to how much cash or - in the best scenario - if any would need to be raised from new issue.
Reckon rotating in to more sticky hands from here.
With this:-
" Development of an early production DMS plant ahead of completion of the main process plant, for early production of spodumene products for early revenue streams, as well as training of operators and developing co-ordination between mining and operations departments"
It may be so. Pre shipment payment? (Table 12 stated first shipment date). Getting some modular revenue (est total 150m) before having to pay for all the main plant (~70m) could do wonders for reducing pos ALL dilution.
I don't exclude it.
AISI it's this in particular that has instigated the sell off. The primary driver for your average AIM PI nowadays is quick return it seems. There is little patience.
Apart from this delay being finally quantified there is little that departs much from what had already been flagged up for those paying attention. Not pay back or IRR, even though the numbers depart significantly from the PFS this is explained because the initial modular operation has lower ROM input.
Looks as for continuity sake SC6 pricing has adhered to the previous, sensible but the outcome I expect l have high confidence will turn out mistaken. Double l would say, 4k today regardless of severe Li selloff. With AISC around 600 and selected sc6 price at circa 1600 there is around 1.7x gearing on cash flow vs sale price. 3k spod offers some 3 1/2x cash flow/NPV.
With a committed partner covering 70% of capex, 50% of product not contracted and no debt obligations (think PREM) as Africa projects go this remains best in class IMO.
Been adding.
GLHs.
Is it that time of day?
It is said that around 3-30 / 4ish certain parties have access to the lists of who is releasing news in the morning, but not what is in it.
Just maybe.
I wrote this the other day:
"From June 2020 to now PREM has 8 bagged"
Reckon best I shut up about them now....... and just quietly wait for Atlantic to grow.
;-/
Https://www.nytimes.com/2023/06/22/business/energy-environment/ford-battery-plants-loan.html
NH was appointed chair at PREM in June '20 until he moved over to Atlantic.
From June 2020 to now PREM has 8 bagged.
Just sayin' ;-)
Https://twitter.com/AmandaHarsas/status/1671734165346320386?s=20
Interesting.
Done.
...... Morning.
D_Jimenez_Sch:
" the fastest path to production will be from teams that have done the job before"
https://twitter.com/ACheesey/status/1671301154410725376?s=20