Member Info for Laverda

Xinmao - bloomin heck

Agree Daz, plus Hainan can fund it how they wish, it may be beneficial for them to move capital from China to the UK and build up income in Zinmao, nobody knows what they are planning for the future.

Not necessarily negative.

Once income starts rolling in it should trade above NAV, but like you say no guarantee, but there is no guarantees on sale prices of goldfields either.

Badoman, good I am glad we see things in a similar way.

I did not say that the share price would rise 10 fold. I said if Kodal predict the net asset value at DMS stage for example 10 times higher then it would be a better investment than placing 2m dollars (again as an example) anywhere else.

Nielle is virtually maiden, I don't think it will cost 3m dollars to complete then it will be saleable, yet more cash in Kodal.

PS the resource has been increased 40%, so the NPV post tax will now be higher too. I don't think we have a figure?

Badomen, 2m to 20m would not require a large fall in share price if Kodal had internal predictions of a multiple of NAV which equalled a 10 fold increase in the current share price.

Badomen, your posts always read as if we lost something, reading all of your posts since you started posting from day one you don't have a good grasp of business.

Kodal were nothing but an explorer and they bought an exploration lease. They built up a jorc resource and a BFS with an NPV of over 500m post tax.

This means that all of the potential money from the mine from start to finish was just over 500m dollars post tax. If someone was going to sell you half of their 30k wage for the year you would not survive in business if you paid 15k for it upfront. Likewise Hainan would not either.

So Hainan paid us 100m dollars for 51% of the project. Which then meant we could move from paper and theory to real world mining. From a tiny little explorer to a reasonable junior miner. None of it could be done without Hainan's money. There was nothing to lose, just a dream.

This part is the most important part to grasp as many investors are greedy about what they see as theirs in the ground with no cash or means to get it out to get it out. There are no cheap shortcuts to have a good mine you need over 200m dollars to get any decent production going. It has to come from somewhere.

Kodal UK mining is separate and it holds the mine in the percentages you say.

Kodal Minerals owns all of the Gold Assets and as you say 49% of the capital value of the lithium.

However the government owns 10% of the revenue from the lithium when due from the subsidiary in Mali. But not the capital and not any liability.

Shareholders in Kodal Minerals only own the capital value of the shares, no matter what the underlying value of any assets may be and unless they have a controlling percentage of shares have little influence over anything within the company.

Badomen, that is not how it works, the two companies are entirely separate, they have absolutely no controlling interest in Kodal.

Furthermore investing capital at Kodal level is purely for capital return, spending 5m dollars on a goldfield for 20m return would be stupid if the share price dropped enough to spend 2m dollars buying your own company shares for a 20 million dollar increase in capital.

It is commonplace in AIM for companies to purchase their own shares if they fall undervalue significantly.

Bernard is purely trying to increase capital value for shareholders, of which he is one.

With Hainan's 17.5m, the 5.8m repaid and the future leo lithium 2m dollars they are way over the amounts needed to complete Nielle and Nielle to fund the next and so on, gold is also a business and should not require money from the lithium side. Unless after flotation plant they decide to purchase something huge.

Dazguard, Kodal the parent company funds will remain at that level none will be fed backwards into the subsidiary otherwise Hainan would own 51% of it.

Badomen - predictive text

Abdomen= Abdomen.

Abdomen, Not from the 100m, which is what you were implying that we said.

From the 17.5m, 2m from Leo and 5.8m repayment of investment in Bougouni, 10% or so of that.

Badomen, which is exactly what we are on about.

Out of the 17.5m. Develop Nielle sell it use the proceeds to develop Fatou. Revenue from Lithium net into Kodal fund buy back with a share of the proceeds.

PS, I agree regarding 10% from the DMS, I have mentioned that before too. Not divendends, a share buy back schedule.

Rory, you have a good point there, at this share price it is better to put money into buying shares back than Fatou. Develop and sell Nielle, use Nielle capital to develop Fatou.

Simply tick Fatou over on a slow drilling program until Nielle capital lands.

Good point.

PS figures are taken from their official accounts submitted to HMRC. Not some pratt off the TV.

Onlyking, I agree regarding Leo, it would have been better for us if they hadn't ballsed it up in the first place or been sorted before our RNS release.

However while I think it will go up on this news, investors migrating over in case Leo messes up again, I think it will be moderate growth.

The news at present is strangling the life out of the country.

However, Tynemouth port profits up, Immingham now the biggest port in the UK by tonnage and booming, plus big surprise surprise, Dover profits in 2018 4.05m, in 2022 6.6m, someone is telling some big porkies on the TV.

Items have to be bought and sold and passengers travel both ways for these to increase profits. Items have to be made or grown here too.

Music absolutely no concern in that area.

My only concern is if Bernard as a CEO always heads a company where the NAV is greater than the market capitalisation by such a big margin, when Kodal is large and established, he may struggle to remain a CEO. Remember though the NAV is set to go up here, not remain the same.

As far as share price goes value in a company cannot be ignored and if we all held until the flotation plant institutions would be taking the shares not joe blogs wheeling and dealing to get a new set of alloys on their beemer and spitting the dummy out if they don't get them before Xmas.

Once this companies NPV is into billions it is a different ball game.

Exactly Rory, immediately I can think of a French project that would be unlikely to get off the ground at the current lower lithium prices.

Also all of those who can still continue but used the high market prices in their calculations have to turn to their investors and highlight that the 25% drop in revenue all comes out of the net profit, translating to much more than 25% out of the investors share.

Bernard used conservative figures and continued with a low cash burn project, putting in proven lithium plant with very low overheads per tonne to ensure the profitability of the project.

Stupid he is not.

All Bernard's costs and projected profits remain on track.

Lol, listening to Bernard always gives you confidence.

We all thought he was way under playing it with his 2,080 dollar per tonne spodumene in his projections last year. Many companies had, and still have projections based on 3-4000 dollars per tonne.

Many would have thought him crazy not to take a capped and collar lithium price offtake agreement years ago for a pre payment agreement but he did not. Instead he took a deal which allowed free market movement at a time when lithium prices were in their hundreds not thousands of dollars.

Talk about a person who can read the market, absolutely spot on.

Those investors with low early price fixed deals are unhappy and those with 4k spodumene prices in their projections have got to be nervous, especially if they have high cost operations per tonne.

We are in a happy place.

Have a good weekend everyone.