The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Ref
https://www.news24.com/fin24/climate_future/massive-shift-ahead-for-mining-in-africa-as-bans-on-unprocessed-mineral-exports-surge-20230930
The relevant sentence that shows how irrelevant this (hardly even deserving the title of a) proposal is to Atlantic's now rapid progress, re:
"CAA Mining's CEO expects the facility to open in 2026, according to Africa Mining Market with the establishment of the refinery linked to a license to explore for further lithium deposits"
not only tells anyone with the most basic analytical sense that it comes from an operator of micro size that has done nothing on the ground, but also that they have no grasp of reality if they think that ANY co at their stage of not having even pegged anything out can come up with delivering lithium concentrate at economic scale in 3 years.
It's tosh, it smells highly dubious. So who would take it seriously?
Something in the air?
Https://cleantechnica.com/2023/09/22/electric-vehicle-sales-in-us-hit-the-accelerator-pedal/
https://www.electrive.com/2023/09/12/chinas-nev-sales-hit-new-high-in-august/
https://insideevs.com/news/687160/germany-electric-car-sales-august2023/
Be ready for the inevitable turn coming here:
http://www.dailymetalprice.com/metalpricecharts.php?c=li&u=kg&d=240
The mood will change with it.
Last month tho
https://www.innovationnewsnetwork.com/how-atlantic-lithium-is-perfectly-positioned-to-meet-surging-lithium-demand/36966/
Second wave buying now. It's taken a while for the significance of this to sink in it seems.... and they had all day in Aus. Slow witted? Africa prejudice? 3.5% by end, really? 27% up here!
;-)
Project risk has been significantly reduced today with this deal. Highly positive. The signs were there with MIIF tuning up in Perth.
The $5m share investment at 21p values Atlantic at $165m, however the much larger $27.9m investment in Ewoyaa for a 6% stake now effectively values the project $465m, some 2.8x Atlantic. What remains unknown FMU is whether this investment counts towards the previously flagged expected 10% Ghanaian take up of a stake Ewoyaa or will that be on top of this?
With finding the some probable $30m remaining cash requirements for the project I expect a significant part to come from the up coming offtake deal/s (end rns) where hopefully there will be an element of forward payment/s.
AISI there is no logic now that says this mine won't go ahead because of sovereign decisions.
ALL looking good.
Https://www.asx.com.au/markets/company/A11
Useful production comparison chart
"Plug-in electric car registrations in the UK – August 2023
BEVs: 17,243 (up 72%) and 20.1% market share"
https://insideevs.com/news/685276/uk-plugin-car-sales-august2023/
Await US & EU figures then all combined to give world figure for August. Sept UK looking to be a record breaker.
Most markets now well past the take up tipping point where EV buying only accelerates.
The lithium supply imperative only becomes more pronounced.
Interesting that 3 mincom executives have gone out to Perth. Long way to go just for a chat with a team that they see on home turf regularly....Perhaps there is something they plan to reveal and want the significant publicity they would get at such a highly attended forum?
We'll see.
NH & KM will be speaking ahead.
The co should resist anything above 5%/30m shares imo.
Needs to be got out of the way.
With lithium demand is EVs' high growth in US being eclipsed now by battery storage?
https://www.spglobal.com/commodityinsights/en/market-insights/latest-news/electric-power/082523-us-battery-storage-capacity-tops-125-gw-in-q2-35-gw-planned-in-q3
https://ieefa.org/resources/coal-closures-battery-storage-solar-generation-energy-transition-everywhere
https://reneweconomy.com.au/rapid-us-coal-exit-has-lessons-for-australia-as-it-faces-down-fossil-lobby-once-again/
Pressure builds. Sign off needed.
Morning. Gradually looking up prior to news.
Lest there be any doubt (it doesn't surprise that some don't/won't read rns's... but WTT? ;-) ....) , it is categorical that the co has fully covered the exercise cost of converting these options for Len held by Melisa with a company loan under the esop scheme.
https://www.marketindex.com.au/asx/a11
"Application for quotation of securities "
Yes. ESOP options that were to expire.
The 900k has been borrowed from the co.
Both LK & AH (march) have shares issued and now debts owed to the co via ESOP. Potential rewards are great but as are the risks to them. If Atlantic fail with Ewoyaa the co will be under huge pressure to find cash and call in debts, but in that circumstance the share would also have lost value.
It gives me assurance with the mine as I see them as competent not greedy fools.
It certainly will.... However the volume of media reports on an announcement (I've spotted around 20 on this one) can give those interested an idea on how much following of this project is out there. Media are primarily interested in how many views something about a given co gets as views lead to money for them. If they see reporting on Atlantic is little followed they will stop.
That they see (and so we can also infer that) this project is being more followed and well followed it seems obvious to conclude that when a genuinely important positive price sensitive and risk reducing announcement comes along, where there is presently significant market uncertainty, there will then in high liklihood be a large scale and fast pile on to this share.
I can think of one incoming.
Who's ready then?
A good demonstration that Piedmont have as much confidence as Atlantic does that Ewoyaa will go ahead. Piedmont not proceeding with completion of Stage 2 would have been disastrous for ALL holders.
However I would not expect much from today's news re the sp as both cos and their holders are still left with an uncertainty with Ghana and the licencing. AISI the ML remains the kicker.
Onward.
Yes, doesn't that confidence contrast rather starkly with the notion now doing the rounds from some that there will be no ML progress for Ewoyaa until the Ghanaian parliament has had a good old year end chinwag (or next year, or next decade!) about the new minerals policy.
Guess we'll see who's right soon enough.