George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
We have a seven year old Toyota Yaris hybrid. Generally a good little run-around but we have had trips all over the UK from Cornwall to Orkney and it has never let us down.
Main thing I don't like about it are the headlights are not very bright, even after changing them to the more expensive bulb option. They have stupid plastic fresnel lenses which limit how hot the bulbs can be.
Maybe somebody could clarify if I have this right or not?
So DFS is now due Q4 2023. At least with DRA Global on board we might hope they will want to do their part in a professional and timely manner.
However Keith said "... during this time the Company will be in the process of finalising permitting, offtake, and Project Finance matters."
But my understanding is the EIA has to happen, presumably there can be challenges and revisions required to the EIA and the permitting. I would have thought that the DFS is contingent on getting these agreed, is that correct?
Looking for a positive spin.
When I bought at 20p the price was supported by little more than sentiment.
Nothing much has changed, indeed the company has successfully raised further funds.
And yet the price has dropped to below 9p.
I cannot see any significant, material change for the worse in ZNWD in the last few months.
Obviously the macro picture has changed for the worse.
Also lithium shares were hit by Goldman and other doomsters.
Joe Lowry thinks these doomsters are wrong and lithium has a great future over the next 5 years or more. I agree, lithium prices are only going up.
So it seems entirely possible that sentiment alone could lift the share price back to 20p or more. Maybe the management might be able to make a substantive announcement in the next few months.
In the longer term the EU might try to galvanise the mining of strategic minerals in the way the USA did a few days ago.
So there is a case to not sell at such a low point and hope for a recovery, or a partner, or a buyout offer. It seems quite possible that in such a case the share price could bounce up.
Unless you have somewhere better to put the money then maybe not a good idea to sell at the lowest prices since December 2020. Mining is a long game and patience can be rewarded.
I considered all this but personally I have lost trust in the ZNWD management due to their seeming lack of any dynamism, maybe further patience would have been rewarded but the key thing is that I have other places that I feel the money can be better invested, hence the decision to bail.
But maybe Maxey is right and ZNWD will make him rich(er).
Thanks to everyone on this board. I have found the postings to be informative and the questions raised made me do further research on ZNWD and rethink my position. Hence my desire to post my thoughts for the board. Everyone’s investment position is different so each has to make the decisions that are best for them at that time.
Jim
Couple of extra thoughts.
Maxey is probably smarter than me and maybe has access to information that can make a great ZNWD investment case, or maybe not.
Disclosure; I have £10K invested in EMH and had about £25K invested in ZNWD.
I lost money in BCN but still having faith in lithium invested in ZNWD.
I was alarmed when I found that Secker was involved with ZNWD but the story looked good.
Lithium mine in Germany near to Tesla, VW etc.
Maxey has put a lot of money into ZNWD so clearly has some confidence.
So why did I sell my 20p shares yesterday for 8.6p and take the hit?
Because I now believe nothing significant is going to happen with this company for many years, if ever.
The product is zinnwaldite. Some Internet sources, DYOR, state that this will need a special processing plant. As far as I am aware there is no such plant in Europe, or anywhere.
EMH are talking about building such a plant for their zinnwaldite mine, across the border.
ZNWD do not have the money, or the likelihood to get the money, for such a plant IMO.
So ZNWD cannot have any offtake agreements without the possibility of processing the ore.
If and when EMH build their processing plant then maybe ZNWD will be able to send their ore there, but that is years away and meanwhile the directors burn through the money with nothing to show.
The possibility of a BCN style buyout may be what the directors are hoping for and might offer some kind of bonus for some shareholders.
IMO Germany is unlikely to let a Chinese company take over a national resource.
EMH would be a logical buyer, but they have a lot on their plate at the moment developing their own mine and processing plant, with no pressing or compelling need to spend cash on ZNWD. In any case I think EMH need to prove that zinnwaldite can be economically mined and processed at scale before they consider buying the German half of the deposit.
But perhaps some deep pocketed party like Tesla or Centerbridge or VW will take ownership of the mine and party up to build a processing plant.
Personally I think the lithium story is still compelling but the ZNWD story is not.
Maybe I am wrong DYOR. Best of luck.