The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
That's not what happened with Firefinch, $130m last year in exchange for 50% of the project, enough to cover the development of the project only. I don't believe they'll be giving KOD half bn to buy in on top of the financing.
If a JV half of the 1bn would be gone in exchange for financing (1bn based on Bougouni alone)
4755 - 500 cost of mine let's say X 240,000 tonnage (increase of 9% recovery - which I think is disappointing given Firefinch increased theirs by 50% approx)
= 1bn approx
Then halved with JV
500m divided by the outstanding shares 16.9bn gives approx 0.03 share price
If spod keeps going up and up then great
I'll go back on the board, I read it here. I think a takeover is far more likely? As a buyer, the lithium price will be eyewatering in future. Makes more sense to buy companies like KOD now. Even at 1p or 2p per share?
Hi everyone,
Lithium per ton is now USD4300 approx, going up every week steadily. A JV doesn't make sense to me if KOD can get financing themselves and they have people who have done it before. Why give up half the profits if the company has the ability and experience to go it alone?
Suay Chin want 30% of the product, but does this mean they will get it at reduced rates? If lithium continues growing at the rate it has been, it will be above $10,000 per ton in 2 years.
Also, does anyone know how the lithium will be sold if no offtake agreements in place?
Totally agree. I'm using this time now to buy as much as I can. Is there anything that could go wrong in the meantime? A coup in Mali, collapse of the Feb elections? A move to non lithium batteries (although I read your post on that Laverda). Agree the board is really constructive, a good read!
Laverda thanks for the info, seems like it is way more complicated hence your increase in price. But obviously worth it! If it's average this year of 1250 for spod 5, what would spod 6 be? Putting in the top price of 2350 for spod as per the last RNs sends the figures into orbit. Also would assume a dividend from the JV and 1b lands in KOD account? On top of the pps increase
Laverda thanks for your reply. The loss of 50% of the revenue, whilst the numbers are huge if the lithium is 1250, is something KOD would want to avoid no? Unless it's not practical, as they need the expertise from a JV partner to run the mine?
The figures are still good even with that though. At that price of 1250 per ton, but at 50%, I make it approx 1bn NAV, 6-7p a share?
1250 X 220,000 = 275,000,000
X 8.5 LOM = 2.3b
Less 7% = 2.17b
Then halfing that if it's 50/50? Not incl the 25% Mali corporate tax and the £117m. That full £117m was included in the DFS, would you know why?
Please correct me if my numbers are wrong!
I am invested here, really exciting.
But if I was part of the license committee or party to this application on the gov side I'd be loading up on shares at cheapest prices before it's granted. And delaying too to that end.