Member Info for Laverda

MH01, Resolute were in cash problems and failed to meet their drilling commitments with us so Bernard pulled the plug on them.

They did some restructuring and turned things around.

Recently they seemed to have made a miraculous turnaround considering the short time frame involved.

Then they appear to have been caught up in this audit.

Alleged non tax payments in some of these companies are running over half a billion dollars, if reports are correct by running ore between mines so it is not included in the extraction mine figures for tax.

If they have caught themselves up in this and that is the reason for the quick change of financial position - then it is not for people to condemn.

It seems that no journalist is covering the finer detail of the old mining licences and what these mining companies have been doing.

Elcobble I also think there is lot of power in Bernard's hands with the offtake.

Look how even Elon Musk squirmed and panicked when lithium prices went high.

Hainan will be a processor and manufacturer in lithium not just miners.

Look at the spread, people aren't parting with their shares easily.

Ijr, yes the Spodumene price only matters when you are selling it.

This offtake floor price will be interesting. I bet Haining are sweating about it, if they are greedy and stupid they will set it too low with potentially no cap or a very high cap, in which case if lithium rockets up in value again they will be scrambling to buy us out so they get costs under control and can control the second offtake on the flotation plant.

If they set it high with a low cap and lithium remains low priced they will be kicking themselves over the offtake term.

Again maybe pushing them towards a buy out.

Without any floor or cap they are vulnerable to market movement.

It will be an interesting outcome.

Second George's comment.

You would not normally 'see' this bill because it would normally occur if the office had been open at the time of the JV and changing of monies, licence etc.

Stuck out here in the open it is gaining attention that it would not normally attract.

Ironically nobody seems to have the interest I did in it, which was the reference point for future gains. I looked at this years ago. I seem to remember it was good because it created a value reference point much higher than our exploration total costs for future CGT. Meaning any future capital gain is very much lower had this process not been in.

Imagine if our reference point was what we paid originally and the costs, to whatever we may sell for in the future.

I feel sorry for those who panicked and sold. Hopefully they are young and learn from the experience.

Onwards and upwards.

Watch out for the trolls inventing the next big catastrophic event between now and production.

I like John Meyer, listen to a lot of his stuff and agree re new exploration in the short term but disagree with him long term.

Exploration is not just about taxes. There are many countries they can go where there will be low taxes and much encouragement plus potentially incentives.

To get it over the line the material in the ground must be good with low impurities otherwise costs rise and production falls.

Good road infrastructure is important otherwise Capex soars and transport escalates.

Most countries where the taxes are really low don't have the skilled contractors and equipment to complete construction and operation meaning a DFS or BFS may never happen.

Water is important in abundance and nearby. Power must be nearby and reasonably reliable.

Mali has all of those things, so like the West it can increase taxes.

I think too many people think Africans are mugs.

Roger has set off for the meeting already:

https://m.youtube.com/watch?v=T-RkuXPj3Q4

Spodumene price has to be above the mined price, it can only slump with over production relative to demand for small periods.

Demand will exceed low cost mine production because low cost mines take years before they produce, 7 years plus on average.

Pullone and that is the small plant!

Pullone, superb looking plant makes you want to be over there and amongst it all.

And Bernard discloses the floor price negotiation in the q&a section

https://m.youtube.com/watch?v=ZSlTX1I5FtQ.

Only king, a floor price normally comes with a condition of a cap, an upper price limit, between the two it works on a floating market price.

They could do something more complicated, like a taper. But cap and collar is the simplest.

If they get a floor price in the offtake then you have a minimum NAV on the DMS plant, the brokers can then do their calculations.

For anyone processing lithium and providing product protecting from high lithium prices has to be their priority.

Capped offtake or 100% of the resource - buyout - their only control.

Has Tesla done any deals while the price is low or are they tied into contracts?

Potato this is the stage where loads of people buckle seen it loads of times animal instinct.

The fun of chasing multi baggers on AIM.

Must be expecting that RNS to be cleared up before the meeting.

Announcement for the meeting released today - not cancelled.

Https://docs.londonstockexchange.com/sites/default/files/documents/AIM_Rules_for_Companies_January_2018.pdf

Two links posted again

https://www.pinsentmasons.com/out-law/guides/disclosure-of-price-sensitive-information--fsa-rules

First one

Sharebug, look at the links with regard to the rules around AIM etc and Hainan will have similar on their index.

Incorrect information was released which created a marked fall in a share price look at the two links and see what will have been triggered.

One of the announcements is incorrect - the process to correct them will have to be followed. The FSA will want an explanation.

Elcobble no doubt of profit when it all comes together and it is very close.

We need some drilling in Nielle asap and we need to maintain high cash levels so Bernard should not be concerned about a small fund raise if need be to keep that cash high.

Not to make the mistake of others on AIM.

It is a shame in 2022 he didn't do a small fund raise and continue Nielle to maiden. It will be a reasonable chunk of cash to come into Kodal plc.