Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
Given the attached conditions:
If (i) the full amount of the 2023 CLNs has not been raised by 30 April 2023;
(ii) the full amount has been raised, but Mustang has not obtained binding commitments of at least US$15 million towards its proposed fundraise at Readmission, nor funded Enerox with another US$1 million until the end of June 2023, in each case by 31 May 2023;
or (iii) Mustang has not obtained approval of its proposed prospectus in relation to Readmission by the 30 June 2023, Garnet will have an option to terminate the Garnet Acquisition, and upon investing a minimum of US$3.5 million into EHL, take a controlling position in EHL.
In such circumstances Mustang may still choose to complete the Acquisition (Stage 1), Acquisition (Stage 2) and Acquisition (Stage 3) and continue to Readmission but only with its minority position in EHL which would be approximately 46.4%.
—— this would appear to be a rather high risk strategy!
Although I’d hazard a guess that the BMN consortium behind the recent $30 million enerox investment have agreed to provide the means and funding to ensure it will go through … the FCA could still put the block on it by not approving the MUST prospectus by 30/6.
There is no lag when it comes to cash in the bank, the lag only affects volumes of product delivered. Apart from a nominal fee to be paid on landing, cash for sales is paid upfront and prior to shipment. That has been confirmed by IR. The cash position for yr end 2022 to be published in the audited results will include cash for product in transit at the turn of the year, so will not affect the 2023 Q1 income.
With the announcement at the end of November that there was an intention for the BE spin off to become an integral part of the MUST/Enerox RTO deal, the timescale for that to be completed is in the hands of the FCA.
In true BMN tradition, bringing the BE share sell off into very late in the game, ( probably due to Garnet still lurking in the background!) made for a far more complex and complicated deal than may have originally been envisaged, that and was undoubtedly the reason behind RBC (being the renowned experts in the game) being appointed to handle the legal complexities of the whole deal on the companies behalf.
Until the FCA gives its approval for the final all encompassing prospectus to be issued, imo there’ll be no real public progress announcements on that front.
On 8 December 2022, South Africa’s Minister of Mineral Resources and Energy, Minister Mantashe announced five Preferred Bidders with projects totalling 860MW were appointed under the 6th Bid Window of the REIPPPP.
The bid window was released in April 2022, and 56 bid submissions were received on 3rd October 2022.
More recently, they have approved a 6th preferred bidder with a 140MW solar project at a tariff of R0.548c p/kWh……………..
https://www.greenbuildingafrica.co.za/energy-ministry-in-south-africa-quietly-adds-140mw-ngonyama-solar-project-to-preferred-bidder-list-in-reipppp-bid-window-6/
@Uksteveg… I think you’re referring to a couple of years ago .. they stated their intention to discontinue publishing separate BE updates. I don’t expect much more than a routine ‘as expected and remains on track’ … result from the next update, with fingers crossed they don’t have any more downgrades again. Very much a wait and see.
Imo, anything majorly that might be in a potentially sp rerating context, will have to wait for the full year audited results report .
Bloomberg) -- South Africa’s currency is on track for its biggest weekly gain of 2023, following Thursday’s larger-than-expected interest rate hike. For Nomura, this is just the beginning of the rally.
The rand leaped 1.6% Thursday to close stronger than 18 per dollar for the first time since Feb. 14. It is up another 0.3% today, pushing its weekly gains to 2.2%, the most since Dec. 23.
The jump followed a half-point rate increase Thursday that was double the amount forecast by analysts, bolstering a currency that is still the third-worst performing among 23 major emerging-market peers tracked by Bloomberg this year. Nomura predicted Thursday that the rally will continue, with the rand averaging 17 to the dollar in the second quarter and 16 in the full year. That compares with median forecasts of 14 analysts for the rand to hit 18 by June and 17 by year end.
Analysts at TD Securities and InTouch Capital say Thursday’s hawkish move by the central bank may help anchor the rand, even though it’s likely to weaken into year-end due to global sentiment and local factors including a weakening outlook for economic growth.
If Nomura seems excessively optimistic to them on the rand, in the past it has sinned by being too pessimistic. Back in January of 2016 when the rand was trading around 16 per dollar, the bank predicted the South African currency would slump to 19 by year end. In fact, it did the opposite, soaring to stronger than 14 to the dollar.
Bloomberg’s probability calculator gives Nomura’s second quarter predictions a 53% chance of coming true. The end of year target has a 40% chance.
https://www-bnnbloomberg-ca.cdn.ampproject.org/v/s/www.bnnbloomberg.ca/south-african-rand-s-biggest-rally-of-year-is-just-the-beginning-nomura-says-1.1903113.amp.html?amp_gsa=1&_js_v=a9&usqp=mq331AQIUAKwASCAAgM%3D#amp_tf=From%20%251%24s&aoh=16802704325497&referrer=hxxps%3A%2F%2Fwww.google.com
@LUCAN, YES! Well said, That’s entirely the point. It’s a point that no-one will know until the next operational update. Everything else is just best guess, last year, all the best guesses were wrong. The year before all the best guesses were wrong. Wrong because no-one had a clue what was happening behind the scenes. Same applies now, so best ignore all the predictions, and wait and see.
Yep, undervalued for sure. But the way China is massively building its energy storage projects, I think we can guarantee that the Chinese state will be making very sure they are completely also self sufficient in the vanadium mining, processing and Electrolyte space.
No way, imo, are they’re going to put themselves in a position of all these projects being reliant on foreign imports.
That being the case, China will become totally self-contained and so will probably have little impact on the ROW vandium market prices.
Maybe one day the same will apply to SA?
As we know, BMN reported they had already stopped exporting to the Chinese market. Probably as good a sign as any that the Chinese are already getting enough for their needs from their own resources. .
If folk want to ignore FM when he’s said it’s going to be several years before the E!Z plant will ramp up to its currently installed to capacity - or just pick and choose the bits they want to believe to try justify their narrative, that’s up to them.
jimbo66, who knows, that could happen - but with the huge VRFB installation projects that are continually being reported as being in process in China, I’d of thought it’s more likely that they have more than enough on their plate to cope with at home. As for “There's the new Eskom BESS projects, smallest 77MW up to 8 hours. Spec left open for VRFB”.
Yer, we’ve heard all that before …. many times. And despite all the bolted on, nailed on, can’t fail hype, FM admitted what was blatantly evident all along, he didn’t even attempt to join the party because they knew they didn’t have anywhere near the capacities to service large grid scale projects. Apart from the ELZ plant which is 45% owned by IDC. Nothing much has changed in their abilities to service grid scale projects. Maybe the SA gov might want to pay for a battery manufacturing plant to constructed so BMN can make the most of BMN’s and SA’s natural ‘ in ground’ resources!
@numpty5, maybe, but they have a huge stockpile.
More than enough to raise the cash to put towards the more immediate debt settlement needs and still have copious amounts left over to flog off for anything that might need a VRFB filled up with nectar for the first few years of operation.
No- one in the western world has anything like the capacities to produce battery units at scale in sufficient quantities to compete with lithium, a few mini-grid type contracts per year is where we’re at for a few years imo.
So not much will need to be reserved for electrolyte purposes for a long while yet.
As FM has openly stated, although short term needs can be met if required by doubling up on to shift work, it’s going to take several years before even the currently installed capacity will be needed for major grid scale projects. Battery assembly is the bottle neck. CellCube had a $30 million investment to take manufacturing capacity to a paltry 30MWH. The next step is to go to 150mwh. Who’s gonna fund it. And even then - that’s no- where near enough to compete with lithium for major grid scale projects. African mini- grids is where FM is aiming , quite rightly too imo, and even that’s gonna take some time yet.
But mini- grid projects it will eventually prove to be a huge industry and market on BMN’s doorstep, imo, spread across over 50 countries that make up the African continent.
Let’s hope you right Pal. With expected production improvements for this quarter, there was hope that sales and therefore shipping volumes, either from production or stockpile, would have increased sufficiently enough to have made up for last years well known obstacles. So far that doesn’t seem to be the case despite predicted production improvements to mitigate the load shedding problems and increased Kiln 3 capacity.
Combined with those shipping volumes also showing no signs they are selling off any of the stockpile to make up for any continuing production problems we perhaps don’t yet know about, it all seems to be pointing to a lack of actual sales. Which might explain the current sp levels despite the price of ‘V’ and perceived currency/cost improvements
With this averages, It might be best to temper recent expectations and not to expect anything too wonderful coming out of the next quarterly operational update at the end of next month.
I certainly hope that’s not correct. Surely those figures means sales are way below bottom end of guidance and together with shipping costs - mean are best - just breaking even, but more likely running considerable losses?
Strange!
https://www.xe.com/currencyconverter/convert/?Amount=1&From=USD&To=ZAR
March 14, 2023
The Netherlands needs 10GW of battery storage by 2030 and, while the market is being held back by onerous grid fees, developers like Lion Storage are working on deploying multi-hundred megawatt systems.
Movement in the country’s battery energy storage system (BESS) market has picked up over the past 12 months. The largest operational system in the country was brought online in October last year by GIGA Buffalo, followed in quick succession by the largest under-construction projects being launched by Rolls-Royce and Alfen in November 2022 and February 2023 respectively.
Lion Storage has early-storage projects in the pipeline with two totalling 350MW/1,400MWh targeting a 2025 commercial operation date (COD) and another two with 400MW/1,600MWh combined capacity for 2026.
In an in-person interview at the Energy Storage Summit in London last month, the firm’s co-founder and CTO Jeroen Althoff talked Energy-Storage.news through the company’s plans, market drivers, regulatory issues, future value stack and other challenges he sees.
Flow batteries seem to be off the menu!………….
https://www.energy-storage.news/netherlands-bess-developer-lion-storage-talks-opportunities-and-challenges/