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A Corcel nickel deal with a large company like Tesla would set fireworks under the CRCL share price.

As an example, last September-October shares in Piedmont Lithium (PLL) soared about ten-fold within weeks, before and after it announced an offtake deal with Tesla.

Though they've since moved even higher.

PLL is currently AU$0.895 on the ASX, a market cap. of AU$1.409 billion.

"ENERGY SEPTEMBER 28, 20202:36 AM UPDATED 6 MONTHS AGO

Australia's Piedmont signs lithium ore supply deal with Tesla, shares surge

By Reuters Staff 2 MIN READ

(Reuters) - Piedmont Lithium PLL.AX on Monday said it signed a five-year deal with Tesla Inc TSLA.O to supply high-purity lithium ore mineral to the U.S. electric carmaker, prompting an 83% surge in the Australian lithium miner's shares.

The initial five-year agreement implies that Piedmont will supply about a third of its planned 160,000-tonnes-per-year spodumene concentrate produce from its deposits in North Carolina. Both companies have an option to extend the deal for another five years. ..."

https://www.reuters.com/article/us-piedmont-lithium-deal-tesla/australias-piedmont-signs-lithium-ore-supply-deal-with-tesla-shares-surge-idINKBN26J03H

"... New Caledonia (/?kæl?'do?ni?/; French: Nouvelle-Calédonie)[nb 1] is a special collectivity of France in the southwest Pacific Ocean, south of Vanuatu, about 1,210 km (750 mi) east of Australia[4] ..."
https://en.wikipedia.org/wiki/New_Caledonia

" ... New Guinea (Tok Pisin: Niugini; Hiri Motu: Niu Gini; Indonesian: Papua[1], historically Irian) is the world's second-largest island, and with an area of 785,753 km2 (303,381 sq mi), the largest island in the Southern Hemisphere. Located in Melanesia in the southwestern Pacific Ocean, it is separated by the 150 km (81 nmi; 93 mi) wide Torres Strait from the Australian continent. ... "
https://en.wikipedia.org/wiki/New_Guinea

Significantly, both the Goro nickel mine and Corcel's nickel projects are located in islands of Australasia.
Both New Caledonia and New Guinea are islands relatively near Eastern Australia.

"Goro mine
From Wikipedia, the free encyclopedia

The Goro mine is a large nickel mine in the south of New Caledonia, near the township of Yaté, Prony Bay, in the South Province. It is owned by the Brazilian company Vale, who are in the process of selling it to Melbourne-based New Century Mining in June 2020 following years of technical problems and low production.[1] The large mine and plant was opened at Goro in 2010 although it has had frequent stoppages.

Details
Goro is one of the largest nickel reserves in New Caledonia, which produces 25% of world nickel reserves. Goro has estimated reserves of 370 million tonnes of ore grading 1.6% nickel.[2] The 370 million tonnes of ore contains 5.92 million tonnes of nickel metal.[2]

The Goro mine is targeted to produce about 40,000 tonnes of nickel per year, and also some cobalt from saprolite deposits. It was designed by the Canadian company Inco, and completed by the Brazilian company Vale after it purchased Inco.[3] Ore comes from a huge open cut mine on the Plaine des Lacs. Nickel and cobalt are delivered by conveyor to Prony Bay. The processed high grade Nickel Oxide is then shipped to Vale's refinery in Dalian, China. Vale have a 69% share and a joint company called Sumic Nickel Netherlands, Japan's Sumitomo Metal Mining Co. Ltd., and Mitsui Co. Ltd., hold a 21% share. The three provinces of New Caledonia hold the remaining 10%. [a sale of the operation is in process, 2020, changing these percentages if it goes through] ..."

https://en.wikipedia.org/wiki/Goro_mine

Tesla's new partner, the Goro nickel mine, is one of the largest nickel mines in the world:
• 370 million tonnes of ore grading 1.6% nickel.
• Contains 5.92 million tonnes of nickel metal.
• Targeted to produce about 40,000 tonnes of nickel per year.

Compare to CRCL's nickel projects:
• Mambare: JORC Resource of 162.5 million tonnes @ 0.94% Ni and 0.09% Co (1.53 million tonnes of nickel)
https://www.corcelplc.com/projects/mambare/
• Wo Wo Gap: Resource of 125 million tonnes @ 01.06% Ni and 00.07% Co (1.33 million tonnes nickel + 83k tonnes of cobalt)
https://www.corcelplc.com/projects/wo-wo-gap/

Mambare could actually contain 10 million tonnes of nickel, and grow the resource to 250 million tonnes of ore and beyond.
The future mine life is already 30 years at 40,000 tonnes per annum of nickel output, and this can grow up to 30 years at 80,000 tonnes per annum of nickel output.
https://twitter.com/Oilplayer2009/status/1350818357340229632?s=20

Mambare and Wo Wo Gap are under a hundred miles apart, and there are obvious synergies here.

"Tesla has partnered with a nickel mine after Elon Musk said the metal was the group's 'biggest concern' amid shortage fears

Kate Duffy Mar 5, 2021, 1:00 PM

• Tesla may become an adviser of a nickel mine in New Caledonia, a deal seen by Reuters showed.

• The agreement may allow Tesla to buy nickel for its battery production amid concerns of shortages.

• Musk tweeted previously, "Nickel is our biggest concern for scaling lithium-ion cell production."

• Visit the Business section of Insider for more stories.

Tesla on Thursday agreed to partner with a nickel mine in New Caledonia in an effort to secure more of the resource, which is key in the production of lithium-ion batteries in electric cars, Reuters reported.

Tesla is expected to become an industrial adviser at the Pacific island's Goro mine, which is owned by Brazilian mining giant Vale and is a French overseas territory.

Reuters reported that the electric-car maker is set to help with product and sustainability standards and buying nickel for its battery production, an agreement with the New Caledonian government showed.

The move comes amid growing concerns about the demand for nickel, as the acceleration of electric-vehicle production could lead to low supplies."

https://www.businessinsider.com/tesla-partners-adviser-nickel-mine-elon-musk-biggest-concern-2021-3?r=US&IR=T

10th May 2021 7:00 am RNS Acquisition of 50MW Flexible Energy Project
" ... with AE becoming a second cornerstone investor in the Company, alongside the Chinese owned Sinom Group ..."
https://www.lse.co.uk/rns/CRCL/acquisition-of-50mw-flexible-energy-project-m1fdprog0jxj0xo.html

Thanks to HawaiifiveO on this board for setting out how Simon will facilitate the development of the nickel projects in PNG:

HawaiifiveO Posts: 2,336 Price: 1.325 No Opinion
RE: Cant buy any volume 18 Jan '21
"This is poised for a major move, it was exceptionally hard to buy online all day, someone seems to be taking anything on offer, Corcel has interests in some very large nickel deposits in PNG yet still is valued at sub £4m m/cap.
The introduction of Sinom Group HK Ltd as a strategic investor in Corcel is material, in the most recent investor web event it was confirmed that Sinom would fund and/or provide off take partners/financiers from China to develop the PNG nickel projects, early stage near surface mining (similar to tailings dumps) has been targeted as soon as the Mining Licence is awarded.
The shares are tightly held, expecting to see a major re-rate, this could be the next multi bag sector play."
ReplyRecommend (4)Report Post
https://www.lse.co.uk/ShareChat.asp?ShareTicker=CRCL&share=Corcel&page=34

Zumore,

There are 104 companies listed in the London Stock Exchange Mining sector :
https://www.londonstockexchange.com/live-markets/market-data-dashboard/price-explorer?markets=AIM&categories=EQUITY§ors=551020,551030

As far as I'm aware, only two of these, CRCL and KIBO (via its MAST subsidiary) have entered the UK reserve power generation sector.

So if CRCL is 'dawdling' as you so ludicrously put it, what on Earth are the others doing!

The comparison with SMS (a £925M. cap. company) isn't comparing from an equal starting point, as SMS has had a three month head start on developing its Burwell energy storage project: SMS starting from 17th. March last year, and CRCL (then called RGM - Regency Mines) starting from its 19th. June 2020 50% acquisition of Weirs Drove Development Ltd ("WDD"), a developer of energy storage and solar projects in the United Kingdom with an initial site in Cambridgeshire.
(CRCL has since acquired the other 50% to give it full ownership.)

17 March Partnership Agreement to develop CaRe Assets
" ... The Energy Management division is now well positioned to extend its offerings to a wide range of CaRe assets and services. SMS has identified a pipeline of opportunities across a number of vertical markets which are at various stages of development, from initial proposals through to feasibility studies and trial stages.
The initial CaRe assets identified include energy efficiency systems, energy storage, distributed generation, EV charging, and these assets and services will be developed for a range of end customers, including critical nation infrastructure (water authorities, rail, mobile telco's), public sector, developments, and retail / enterprise. ..."
https://ir.q4europe.com/solutions/smartmeteringsystems/3678/newsArticle.aspx?storyid=14635294

19th Jun 2020 7:00 am RNS Acquisition, Fundraising and TVR
https://www.lse.co.uk/rns/RGM/acquisition-fundraising-and-tvr-iphgr88fvse1e3y.html

Since its acquisition of the Burwell battery project, progress on this project has included:
• Completetion of a positive project economic review.
• Receipt of planning permission.
• Receipt of a grid connection for the project.
• Agreement of lease heads of terms with the landowner.

This is highly impressive progress, especially during a pandemic, and is the very antithesis of dawdling.

All that is awaited now is completion of the land sale, which is expected any day.

But that's out of CRCL's hands, as it's neither the buyer or seller of the land, so how can you accuse them of dawdling over it!

So CRCL's Burwell project won't just be a one-off.

We can expect a stream of such projects ... with the next one expected in the near-term, according to CRCL's update this week:

5th May 2021 7:00 am RNS Operations Update
" ... Flexible energy storage and production remains a very attractive sector here in the UK for investors, and the Company notes the recent successful Mast Energy Developments Plc (AIM:MED) IPO and implied valuation read-across. The Company continues to focus on this space and expects to expand its footprint in the sector in the near-term." ..."
https://www.lse.co.uk/rns/CRCL/operations-update-7orlzqy6h0kokow.html

From Align's 21st. January 2021 research note on Corcel:

"Corcel’s FGS Pipeline

Already, the company has a pipeline of energy production and storage projects in development or under review for sanction that include gas peaker plants (natural gas burning power plants which only run when there is high demand for electricity), flexible energy storage, combined heat & power systems and solar projects.

Such energy storage projects can provide electricity potentially to something like thirty markets. Options including power arbitrage where the batteries are filled up at 6am when power is free and then some two and a half hours later the power is sold for £120 per MW when people are up and about and demand is higher.

It is more than likely that Burwell will provide a blueprint for further deals in the sector with the company having the ability to take available opportunities, with some going into electricity generation and others being monetised. With the target of developing 4-5 such FGS projects a year, it is clear that this rapidly growing division is set to create a growing stream of longterm reliable earnings which can be used to fuel the company’s battery metal ambitions. Moving ahead, this means that at Corcel, investors will not have the normal concerns about small cap exploration plays with their regular fund-raising exercises that cause significant dilution and poisoned relationships with long term shareholders."

http://www.alignresearch.co.uk/wp-content/uploads/2021/01/Corcel_Initiation_Align_Research_Jan_2021.pdf

The last two funding hurdles (i.e. agreement of terms, and banking due diligence) have been passed recently, and the company is keeping us well updated.

Buying in at such a steep discount to the placing price is a massive buy opportunity.

18th Mar 2021 7:00 am RNS Diamond Production, HMS Extension and Investment
“… Investment package agreed subject only to banking due diligence. Total investment of €9,130,000 via equity and convertible loans at a price of €0.03142 per share.
... Progress continues to be made on the proposed investment by a local Namibian investor referenced in previous announcements. The terms of the investment package have now been agreed for an overall investment of €9,130,000 which will be made in two tranches: ...”
https://www.lse.co.uk/rns/KZG/diamond-production-hms-extension-and-investment-9vwiy3fo5z69cvc.html

31st Mar 2021 7:01 am RNS Interim Results for the 6-months ended 31 Dec 2020
“ … The critical pathway to monetising TVM remains construction of the Orange River Pipeline, which now has all the necessary governmental approvals required to begin. Financing for the project has made progress during the Period, with the Company close to securing a proposed investment by a local Namibian investor of €9,130,000. ...”
https://www.lse.co.uk/rns/KZG/interim-results-for-the-6-months-ended-31-dec-2020-umfu90d7c7lxqbn.html

14th Apr 2021 7:00 am RNS Due Diligence Completed for Namibian Investment
“ … the Board have now been informed that the banking due diligence on the investment package totaling €9,130,000 announced in previous RNS's has now been successfully completed.
The Company is now awaiting final confirmation of the transfer of funds, at which point it will make a further announcement. ...”
https://www.lse.co.uk/rns/KZG/due-diligence-completed-for-namibian-investment-6w0ayfaifnhenru.html

" ... I wrote to JP yesterday and today and finally received a reply. ...
... will build the NAV by unlocking current assets ... We do believe this will provide shareholders with significant value in the medium term ... "

Yrabsmurruc,

You're clearly a hard man to please!

A reply after just a day is impressive, but you're complaining!
Check out the KIBO boards, where shareholders never get answered at all, which is not unusual for AIM.

And building up CRCL's NAV by unlocking the hidden value in the medium-term is also impressive, yet once again you're complaining! How long did you think it was going to take?

I think that a reasonable definition of short/medium long term is:
Short-term: days and weeks.
Medium -term: months. - Minimum 2 months.
Long-term: years. - Minimum 2 years.

But as share prices reflect future expectations, that doesn't mean that the s.p, as opposed to NAV, can't increase in the short -term.

Some events can be important steps on the road to increasing NAV, and the s.p. will be rewarded as they are passed.
E.g. signing the Burwell lease, or agreeing a share of the Wo Wo Gap nickel project from RMI.

I'm certainly expecting the CRCL s.p. to increase very significantly over the coming weeks and months.

But by all means don't buy more ... and leave more cheap stock for the rest of us!

Thanks to Coinbase on ADVFN for this useful post this afternoon:

coinbase 5 May '21 - 13:34 - 748 of 759 0 2 0
"Cracking RNS, the company has played an absolute blinder. The decision to shelve the solar project has saved them (and us) a small fortune. Onwards and upwards."
https://uk.advfn.com/cmn/fbb/thread.php3?id=48090403&from=731

Yrabsmurruc,

I don't think they wouldn't have known at 7a.m. today whether the sale completion was happening tomorrow.

But even if they did, I still think that it makes sense to have a general update first, and then the lease signing in a separate RNS.

Companies do sometimes release news on consecutive days, and indeed last October CRCL released news just two days apart:

26th Oct 2020 7:00 am RNS Placing, Broker Appointment and TVR
28th Oct 2020 7:00 am RNS Exercise of Debt Acquisition Option

"imminent also means “on the cards”."

Yrabsmurruc,

We're not fighting, just debating, which is fine.

That said, imminent absolutely does not mean "on the cards"!

It doesn't, and cannot, mean that at all.

Any minor 'uncertainty' in the RNS isn't based on the word "imminent", it's based on the word "expected", because expectations aren't guaranteed to happen.

But the company is simply being responsible in not saying that it WILL be signed imminently before it has actually happened, even though they regard this as likely.
It would be unprofessional to do otherwise, which makes it rather ironic that you are criticising them for it.

Markets can be funny creatures: sometimes shares do rise on bad news, and fall on good news.

I read an RNS and make up my own mind.

"imminent"
"adjective
1 likely to occur at any moment; impending:
Her death is imminent.
2 projecting or leaning forward; overhanging."
https://www.dictionary.com/browse/imminent

As regards the dictionary definition of imminent: the example usage of someone's death is obviously based on someone who is at death's door: it's clearly not saying that death is imminent for everybody ... and therefore it's not saying that imminent can mean some way off.

The problem here is that some people cannot apparently understand plain English.

Yrabsmurruc,

Today's fall is a one day wonder. Traders will be looking to get back in ASAP.

There's nothing amateurish about today's update in my opinion: it's very professional, very informative, and contains multiple pieces of good news.

Yrabsmurrac,

I don't believe that CRCL would lie in a RNS, which could be the serious criminal offence of fraud.
If they say that they it's 'expected imminently', then that is what they expect.

Of course it could potentially delayed; but then again it might not be delayed.
What take the risk of missing out on a potentially huge opening rise, when it will probably be difficult to buy any reasonable quantity at anywhere near the previous price, and the share price is so undervalued.
Plus of course there could be other good news announced at any time.

We were due a company update, and there lots of news in today's RNS, so thanks and well done to the company for issuing it.

The Burwell lease signing is so significant that it is worthy of a seperate RNS on its own, so it's good strategy to give a good general update just beforehand.

Corcel's Investor Presentation Feb 2021, on its website, shows Burwell financial close as occurring by end the end of June:
https://www.corcelplc.com/wp-content/uploads/2021/02/202102_CRCL_PPT_FINAL.pdf

After the signing of the lease, this will be another major step forward in realising the project's value.

Yrabsmurruc,

CRCL's statment that the Burwel lease signing is imminent corresponds what I would expect based upon my own research & analysis.

My understanding is that this is the site -

"County council ploughs £3.4m into farm deal
John Elworthy
Published: 8:46 AM January 26, 2021 Updated: 9:20 AM January 26, 2021
... A 241-acre farm put up for sale with an asking price of £3.4m has been sold to Cambridgeshire County Council.
It is the first farm bought by the county council to add to its 33,000-acre estate in 50 years.
Lower Portland Farm near Burwell was put up for sale after the Mason family – who had farmed it for three generations – retired.
Lower Portland Farm near Burwell was put up for sale after the Mason family – who had farmed it for three generations – retired. ..."
https://www.huntspost.co.uk/news/local-council/council-buys-cambridgeshire-farm-7072540

The typical time to complete the sale of land shouldn't normally be longer than about three months, which would be late April is this case.

The heads of terms for the lease have already been agreed, so when the sale of the land completes it should be signed immediately.

5th May 2021 7:00 am RNS Operations Update
"Burwell Energy Storage Project
... The Company continues discussions with the landowner of the property regarding the execution of a binding option to lease. The Company has been informed that the landowner is currently managing a land sale process and Corcel therefore expects the lease to be signed with the new landlord following that land transaction completing; which is expected imminently"
https://www.lse.co.uk/rns/CRCL/operations-update-7orlzqy6h0kokow.html

Signing of the lease for Burwell is probably the most important milestone to be crossed, as that was the major potential stumbling block.
Once the lease is signed, everything else can just follow on naturally.

The fact that it could be signed any day is great news.
Bad news would have been a lease delay, or a problem.

I would certainly expect the lease signing to break the CRCL one year closing sp. resistance of 2.3p, and from there the next stop should be 3p and more.

So a rather silly share price fall today, which is presenting a great buy opportunity.