Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
He can barely keep the grin from his face - love it!
But not down as much as expected, indicating potential further delays in interest rate cuts (hence UK markets down across the board today).
Yes they could use cash to buy back shares, this typically has the impact of supporting the share price. However there is an opportunity cost to doing that in that the cash used is not invested in the business. So a business would typically only do a buy-back when it hits cash cow stage.
Hadrian - I question your credibility when you say things like this.
Kod Share Price
4th March: 0.364p
Today: 0.415p
Increase: 14.0%
Spod Price
4th March: $990
Today: $1,135
Increase: 14.6%
So actually, given there was not much in the latest update we didn't already know (aside from the corporate shenanigans), the price has pretty much recovered in line with spod price.
It's very colourful (and loving the Space Invaders vibe), but what's the message?
Topped up at 0.29, average is now 0.13.
It's mining, and it's Africa. Outside of that, it's about a good an AIM prospect as it gets. We can post and post and post, but IMO this is just pure lack of interest from "investors"/traders until the next round of news. Until we get to production and some institutional investors start to wade in, this will be the cycle.
Relax and put your feet up for a year.
Nothing new there other than re-emphasizing all the positive reasons to be involved with Kodal.
My biggest concern is Bernard's health - he didn't look in great shape and was wheezing a bit every time he drew breath to speak. Hope all the stress is not impacting him too much!
Nothing we didn't already know but good to be reminded and hopefully this RNS gets seen by a wider investor audience and people put two and two together finally!
Lav I agree, but it's that subtle nuance that many bored investors flicking through information could potentially miss. I think Watcher is "BSC" (bat-sh*t-crazy) but he does have a fair point that the downward pressure we are seeing here is likely in part due to the spodumene price-drag. The problem in the short-term for Kodal being we are just lumped in with "lithium prospects" and the fact we would remain profitable even at current price just isn't a consideration for most currently.
For us LTHs it just doesn't matter for now.
The short-term price of spodumene is irrelevant to the long-term goals of Hainan and Kodal. Someone much cleverer than any of us within Hainan decided it was worth investing over a $100m into a tin-pot explorer, soon to be junior miner.
The forward view on lithium requirements is bullish for sure. All new technology hits a wall at some point and currently EVs are in the doldrums because of the rapid initial uptake and the failure of suitable infrastructure to keep up. Range is still poor and charging facilities inadequate, battery fires though rare obviously high-profile.
Just like the M25, at some point it will move again. At which point (hopefully two years down the line when Kodal is producing) lithium will have resumed being an in demand product.
Elc - makes me laugh/cry that on "rumour" of the deal the price hit 0.9p...
Completely agree on your last point, apologies for the finger-pointing - I, as well as I am sure many LTHs including yourself, am just trying to understand the negative market sentiment. We can yell and tweet all the positive indicators we want, but my T212 price is currently 0.45 so there is a reason investors/PIs/my cat are not confident in future earnings (which is the core basis of a share price right?).
Lav I like your posts and I am as positive as the next KOD LTH, but you contradict yourself here. You say it's wrong to say the $100m is debt until the licenses are transferred, but then say if the license doesn't transfer the $100m is a repayment loan...which is debt.
This will likely sound naive but if us shareholders don't benefit long term than currently neither would Bernard, who from 22 Nov will have 320m shares in KOD.
Wrong.
Hainan agreement is not to sell their shares for 12 months.
0.48p hit.
Worth less than the cash it received on Wednesday.
Gotta love AIM.
Hainan rep: "erm, there is some bloke on LSE called Watcher36 who says lithium is the devil's defecant, no-one will want it, and the price of it is going to be equivalent to a Cadbury's Boost - do you think we should hold back the $100m from Kodal?"
Hainan CEO who is definitely just winging it: "Nah, we are good".
I ask myself, if Hainan had any concerns about the completion of this deal why would they be letting Kodal start eating into the prepayment / working capital to start building roads?
If the plug was about to pulled, I would be like "no you f*cking won't!"...
Why do you automatically assume debt is bad? If Fosun can service the debt and make ROCE over and above the finance cost then what's the problem?
Gazza so now you are doing your own research...by listening to JohnnyPC??
How are you losing money? Have you sold your shares at a loss then? Or is it just paper and you are impatient.
What makes you think you won't make money in the long term based on Kodal fundamentals?