Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
Just had a quick peak over on FAR board and can see some of you have been providing some opinions.
I see the annoyingly smug OlderandWiser chap is tucking into our very own LS.
Cant believe the 13 million CEO dump has been dressed up in that RNS as a placing ffs.
Expect some turbulence over there tomorrow......
With most researched analysts predicting rising PGM prices (particularly Pd and Pt), it’s reasonable to use a PGM basket price of say $2,250/oz. This is based on a 3:1 ratio of Pd:Pt, plus there are also unknown amounts of Rhodium etc.
With production costs of $400/oz this gives a GP of $1,850/oz. The mine plan of 1 million oz per annum therefore give a GP at that production level of $1.85 billion. Deduct $100 million for other cost (sales and admin plus depreciation). Then 20% tax deduction and $1.4/£ exchange rate gives annual post tax profit of £1 billion.
Round numbers admittedly, but I cannot envisage a sale price that would essentially equal only one year’s future post tax profit, when there appears to be at least 15 million oz to get through.
Yes there would be a 20% deduction for the part of MT that EUA do not own, but you get the picture.
My thinking is that we will be sold for at least £1.
Holding till the end.
GLA
Bass - just throwing numbers around. Let’s say a valuation of £60m is agreed for BE, which is then reversed into MUST and unlocking the value.
BMN / MN retain 65% of MUST and BMN /MN receive £20m for the dilution.
Bass - a separate listing of BE would allow investors to hold a stake in a pure Energy company rather than a mining company and the Market would apply a valuation on that basis, as is the case with IES.
Bass- a spin out could possibly begin to realise some value to us shareholders. Yes there would be some dilution but we should start to see some appreciation of value for that side of the business. I think most would agree that at 17p there is no value for BE baked into the current SP.
For arguments sake, a 25% dilution but a new platform for the story to be told, attracting new stakeholders and growing value. Currently BE has no value, so a mechanism to unlock that value via an RTO, with BMN retaining a large stake could be a positive step forward. I may be way off here, so interested to here thoughts.
From Mustang accounts:
“The Company was formed to undertake an acquisition of a target business, or asset(s) with operations in the energy or natural resources sectors.
The Directors believe that their network and profile following Admission mean that the Company will be able to target an Acquisition where the target company or business or asset(s) has a transaction value of between £2 million and £50 million.
The Company's determination in identifying a prospective target company or business or asset(s) in the energy or natural resources sectors will not be limited to a specific geographic region, stage of development from exploration through to production. However, it is the Company's preference that the target is generating cashflow or has the capability of generating cash flow within 12-18 months of acquisition.”
Just musing, any thoughts on BE being spun out into Mustang?
Gambit, I understand the frustration with short term “traders”, but in the big picture it really matters not. We are clearly on the same side, and I think both of us will call someone out when we feel necessary. So no problem with a gentleman’s disagreement lol.
Onwards and upwards and hopefully a positive few days and weeks ahead.
Cheers
Gambit - I commend your continuing positivity, but come on, that’s a ridiculous comment. Jvetch bought some shares and then sold them - at a loss!
Also Knuttie posted earlier that he had sold a million shares recently - are you going to rip him one next?
@Jvetch - some incredibly harsh and unnecessary comments this morning regarding your position.
Personally I appreciate your honesty and transparency and you clearly believe in the story, just not convinced on a few things, particularly the timing.
I’ve read some of your excellent contributions over on the AVCT board. I also have a significant holding there although choose not to post.
Anyway good luck with your strategy and hope to see you back here soon.
PS. From your moniker, are you a “Jack” by any chance (Swansea fan)?
Hi James, yes I have a lump in EUA and been holding for over a year pre suspension so very low average. I still think it will come good so holding till the end - fingers crossed.
If a sale goes through at a decent price, a chunk will be heading this way. Best scenario for me is if that the deal happens soon while BMN sub 20p as I honestly cannot see BMN being at this level for much longer.
GLA
It just occurred to me, can anyone confirm that the 27.4 million sale back in January was printed as a trade on LSE.
The RNS confirmed the sale and I may have missed the trade being printed. If it hasn’t been printed then why not?
@Mongooser, from my notes....
Stillwater was acquired for $2.2 billion (offer Dec 2016) and was carrying bank debt upon acquisition of $275m.
Stillwater’s proven and probable reserves measured 39.4 million tonnes grading 15.6 grams per tonne for 19.9 million contained oz. platinum and palladium (78% palladium and 22% platinum).
For 2016 when acquired Stillwater had AISC of $622 per PGM mined ounce produced. This compares to EUA of approximately $350-$400 per ounce.
Palladium prices were significantly lower at the time of acquisition at approximately $600/oz.
Hope this helps.
Vanadiumprice.com showing European V205 prices up a further 2.63% today to $7.80/lb.
That’s a compounded rise of 6.85% this week.
https://www.vanadiumprice.com/
Vanadiumprice.com showing European V205 prices up 2.70% today to $7.60/lb.
https://www.vanadiumprice.com/
Not sure if posted, but Vanadiumprice.com showing European V205 prices up 1.37% today to $7.4/lb.
https://www.vanadiumprice.com/