Well there is a willing - and persistent - seller for a chunk of that!
Jurisdictional/political risk in Mali is a huge red flag now imo. Russia taking control, UN thrown out. French interests being eliminated. What chance a small AIM miner?
Douglas CHIKOHORA runs CAA Mining Ghana plus many other cos across Africa. Resident in Hertfordshire. I've not found anything suggesting exploration has happened or there is a JORC in the licences reported to be adjacent to Ewoyaa though there is apparently a licence to mine.
I suspect the licences are speculative with a view that CCLP may make an offer for them at some future date. Interesting.
Will keep looking.
"KP worried me with his statement that they will pay less than S900 for ALL spod"
Mick, thein effect reality from the deal is that they are not buying any spodumene mined from Ewoyaa (and definirly not from Atlantic), they instead will be the (joint) mine owners, they will own the ore before any production. Peidmont are buying around half a mine for $103m plus half any capex overrun above 70m. I guess their bill will total around 140m in the end.
As part owners of CCLP Peidmont will also be liable for around half the mining costs. This is what Phillips is on about when he stated: "in Ghana we'll get more tonnes at lower cost", he is looking at Ewoyaa's OPEX, far lower than the 900/t they will pay NAL. The SC6 pricing formula is about the pricing being set between CCLP and Peidmont Lithium Ghana, it's accounting transparency since CCLP will have 3 share holders. Peidmont pays that to CCLP, then gets around that much back minus costs via what they will earn from owning their stake in CCLP.
For Peidmont this is the benefit of vertical integration. For Atlantic (and their share holders - us) the benefit from the deal is two fold:
*we have been paid cash to explore, develop and then mostly build this mine, avoiding raising that from the market has saved what would have been a great deal of expensive dilution on a then ~£100m company,
*we have consequently been able to fast track the development, I don't think they could have moved as fast whilst having to also do multiple raising.
Pre the deal Atlantic as Iron Ridge I think spent around 40m over 5 years bringing on Ghanaian lithium prospects. For that and with this deal and all going well they will end up with a large 45% stake in a mine I suspect will have many years of multiple billion earnings.
Investing in a win-win for all concerned aisi.
Spodumene software as Mr Klein likes to opine!!
"Am I missing something here"
Mick do try and understand what the deal is.
The July 21 RNS wording:
"Offtake pricing will be determined via a formula, which is linked to the prevailing price of lithium products, ensuring IronRidge captures value-add margins"
The wording in the ASX prospectus last year:
"Price and Payment
The price paid by Piedmont for each shipment of the Spodumene Concentrate will be determined
using the prevailing price of lithium products, ensuring the Company captures value-add margins."
As already said this pricing formula is not disclosed. But I would imagine both sides would not have got agreement on the formula pricing if it were to throw up prices for SC6 that would then depart greatly from the pretty consistent ratios that are found from market average contract pricing of hydroxide and carbonate compared to that of SC6. Varies not that much around 12:1.
Peidmont's great advantage from having this JV and offtake compared to just buying spod in the market for Tennessee is that they will own 45% of the CCLP (ALL 45%, Ghana gov 10%). So not only will they get the refining profits (some 7t of spod makes 1t of hydroxide and at market it is 1/12th the hydroxide selling price, noted there will be other costs) but they will also gain profit from their CCLP holding and that ill be enhanced more so by Ewoyaa's very low OPEX. NAL is significantly higher.
For Atlantic they sell 50% of Ewoyaa production including the byproducts where they like and make profit from their 45% holding in the CCLP.
One can see what those may well be like from 9B's useful projections.
https://twitter.com/Paydirt_Media/status/1621027848097263623
;-)
Of course what KP was actually trying to get over was that Peidmont's value would be 'fair' if the present values of their holdings in ALL and SYA (which he is taking as being fair) were being fully reflected in the valuation of PLL. That presently is obviously not the case.
Fully comprehending is so vital. .... and when applied correctly would have been a blazing red light screen out for, say, the likes of MODE! But hey ho.
Still have the remnants of DGR's holding to sell down. 23.4m as at 10th January but appear to be selling into the market some 5 -10m per month.
A restraint, but now not for long. Could see a party/party deal? Ala Assore.
https://www.youtube.com/watch?v=oY1WlxYbchc
Comprehensive Peidmont.
Ewoyaa well covered. 25th January.
Did I read some decrying that Atlantic should be joining the - get the fast buck, never mind what you said about ESG - DSO band wagon? Well coincidentally:
https://www.**********.co.uk/articles/atlantic-lithium-significant-mineral-resource-estimate-upgrade-confirms-ewoyaa-as-a-best-in-class-project-76bfb40
That's 'vox mar kets'
Take abvantage of high pricing and quick cash generation is good, but shocking carbon footprint from trucking and the boat to China. Best to also get the separation plant(s) (@3mt/y?) Built ASAP.
Difficult to say no to ~900/t at sub 1/10th of that OPEX though
Presure building here.
I think certainly even with present sc6 pricing and very likely also going down to half that then a 0.2% (central is 0.4%) cutoff for Ewoyaa will be economic. They have that at 45.3mt MRE.
A lot of room developing to up the RoM in the DFS. 3mt/y easy.
MRE 35.3mt
And..... umm.... teeeechniiicaly in January. NH just make sure those ops pay ......Us all!
I you all will :-))
LL don't fret so, that is just a Direct quote from the 13th October RNS.
ATB.
https://www.timesnownews.com/auto/electric-vehicles/us-ev-battery-booming-as-orders-overwhelm-lg-energy-solution-article-97413811
ALL - right place right time.