Member Info for Glengarth

BB don’t think the number of shares for the BAT deal will change - they’re fixed at the price of 103p. BAT shareholders have voted for the deal and it’s supposedly just with the country regulator now.

Reggie they also used £5m raised in the IPO for funding to expand capacity to the current 12,000tpa which is now operational per the last RNS. The £10m was raised additionally to fast-track the next 18,000tpa module and develop the 1st stage of the hydropower station which by the sounds of it has been mostly funded and is nearly complete result in cost savings.
I wouldn’t be surprised to see debt funding used once the company demonstrates its growing revenues and move towards profitability which is aimed to be reached this financial year to March 2023. With growing revenues, and subsequent profits and well known demand growth from the Li-ion, flame/thermal control markets and other industrial uses I would not be surprised if TGR is able to onboard a flexible debt partner.
Those who previously criticised the high level of family ownership were rather short sighted not to contemplate possible dilution would reduce their holding % - of course the flip side is they would want to retain as high a % stake as possible in their business.

GLA

Indeed InB

Vulcan is high capex and a complicated process yet to be fully commercialised/proven at industry scale like you say. Indeed there’s a risk there perhaps along the lines of what’s been seen with Lake Resources and doubts over its tech.
All this makes a conventional large scale spodumene project all the more appealing to avoid such technological issues and high capex.

Chameleon- talking about low carbon energy I believe Portugal is also quite good on hydropower which DA has referenced for the project quite a bit.

Good weekend all

link to investment:

chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.investi.com.au/api/announcements/vul/5a778020-7ac.pdf

The OEM (read car maker) major Stellantis has announced a €50m investment into Vulcan Energy in Germany, the first example of upstream investment in a listed lithium company by a top tier automaker.
This is probably the benchmark/blueprint now for automakers - at the Benchmark Intelligence GigaUSA event it was made clear that automakers will need equity stakes in Lithium (and other battery materials) companies if they are to have greater control on the finished product they need to produce batteries for their vehicles.
Judging by the number of gigafactories lined up for Europe and SAV having the most shovel ready, conventional Lithium resource in Europe I suspect we will see a mad rush for similar arrangements here - if not pre-emptive 'in principle' arrangements in advance of the EIA?
Either way the above news goes to show incredible risk v reward opportunity here imo. GLA

Feeling even more confident with ALL seeing others trying advertise their companies on here. Yawn.

Great find. Ducks lining up.

Thanks for posting this

The PLS auction shows just how strong demand is for Lithium - at this stage of the cycle - before a couple of hundred gigafactories even come online, before their demand kicks in.
We are sitting at the very start of an industrial revolution requiring significant volumes of the right critical materials. Position accordingly!

Agree Cigam.

One option may be if they demonstrate the profitable potential of the expanded modules I don't see why debt funding can't be an option. If they borrow say £2-3m and use £3-5m of profits/cash flow from the enlarged operations to get capacity to the next leg up of 48,000tpa successfully then subsequent profit levels could be used to pay down that £3m and/or start a flexible facility to grow further to the next level of 66,000tpa.

From the IPO document each 18,000tpa plant had a CAPEX cost of between £4-5.2m.

GLA

I would hazard a guess that at 4,800tpa in Patalganga, the net profit at a basket price of $3,000/MT may produce another net profit of around £3,000,000 for TGR's coffers - I would like to see TSG deal complete and financials consolidated with TGR's asap, but imagine that operating costs are much lower than the primary side with all its moving pieces on the ground.
Based on figures contained with in the IPO prospectus/admission document, considering a total of £15m was raised at IPO and subsequent placing it's my belief they are more than funded to deliver the 18ktpa plan in Madagascar and the expansion at Patalganga.

GLA

Agree Neavo.

Unlike most on your list TGR actually makes and sells something and is building multiple valuable parts of an in demand supply chain and has a management heavily invested as we.

If anyone can explain how a Bitcoin miner makes money and provides a return I’d appreciate it, I still don’t understand. To me they just ‘mine’ Bitcoin and leave it in their wallet/account - what use is that to anyone? Happy to be enlightened

Now the combined 12,000tpa capacity is up and running and de-bottlenecked i'd expect the rest of the year to be another strong leg up on last year both production-wise and financially. Indeed, in the interview i've just watched Shishir is targeting cash positive/positive bottom line this financial year. Certainly with industry leading low-capex and the upcoming 30,000tpa capacity this will be very attractive for investors as profits can be re-directed into capex, derisking the investment proposal here. Important to note that a lot of the spending is already complete for this step and now the higher production and sales can fill the company's coffers. Extra infrastructure like the road programme is essential and good to see Shishir is prioritising this to be done by the next rain period.

Looking forward to the next results for last year, the half yearly for this year to September and the end of year results which will hopefully contain that all-important profitability. GLA

I don't know what the exact split is but some material will be shipped to India to be used in making the value-added (as stickybob refers to below) downstream products, so I expect some will have been used for that. Good question though and worth asking TGR for more info.

glynBristol - this is an update from the primary operations in Madagascar - that is only production and sales of flake concentrate at various sizes from Jumbo to small etc. It's an average basket price.
'junk' grade as you put it doesn't exist but the fine flake market which the likes of Syrah resources predominantly sells into is currently at about $500-600/MT.

Lastly, spherical graphite and the downstream graphite products like the flame control products as sold in the UK by our partner Minralis for example sell for over $3,000/MT and are made in the India located downstream operation by TSG which the company is in the process of merging with, hence why are not included in this operational update.

I think it was part of the strategy to reach early production faster and scale up modularly

Update today is neither bad nor fantastic, not looked upon favourably in current conditions at all. But those of us who have stuck around still know the impact the new module will have, and points to further news coming this year. Glad the company released this detailed RNS covering multiple bases - mention of the hydropower and CFS (with the team flown in from TSG) is good news.

GLA

Slowly but surely SAV are developing a fantastic project with today’s announcement highlighting work for the flow sheet, to be ready to go all guns blazing if and hopefully when the EIA is awarded. Come on Portugal, lead the way for Europe! GLA

They won’t be similar considering TGR will have produced over 1,000MT more than the year before as per announced guidance in previous RNS (3,200-3,500MTs) so should have improved. Of course the real
Improvements and likely profitability is likely for this financial year with the commissioning of the huge new module of 18,000tpa and downstream to 4,800tpa which is funded and due in the next few weeks and Quarter respectively.
GLA

My take on the designation of Lithium as ‘hazardous’ is that it will raise costs for importers of the material shipping it from South America etc for Ocean transit and long journeys to be handled through major ports and trucked to processors like the Albermarle plant in Germany mentioned in the article.
This is classic European regulation stuff, getting in the way where it doesn’t necessarily doesn’t have to - and could arguably be an example of protectionism by raising costs for those exporting into the European market.
On the flip side it could possibly be a positive for domestic producers such as SAV which I imagine would probably have stringent precautions in place as a producer given the market leading example in Europe it is trying to be and because the material has to cover much shorter distances to reach market, avoiding extra costs associated with shipping etc

quite a stretch comparison there Astro lol

It's like the market isn't considering future growth just round the corner in the grand scheme of things. Next updates are very important and are not far away now.

I've had multiple responses since IPO - but not to every email but I don't expect them to respond to every one. My advice would be to keep the messages short and the questions relevant. I try to keep each one to a single subject so email them multiple emails on different days, seems to equal a greater chance of response.

Could have seen capitulation here now back at IPO prices even though the company's production and financial profile is about to improve massively over the next 2 quarters with the new primary and downstream expansions. Confirmation of work being completed and sales volumes rising will do wonders imo.

GLA, DYOR.