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From what I can recall BA is adding in the lower grade Lithium with this coming feasibility study. Correct me if I'm wrong though but I thought that was one of the main aspects of it. I'm pretty sure he said not much will change with the Spod 6 but they'll be a significant increase in the resource with the Spod 5 added in. Only the RNS will tell.
Daz if your tortoise is correct I'd be happy for him to have an alias here: might talk more sense than Fart Jet and Dazidilliumyy!
I hope news does drop tomorrow morning in the form of a nice tasty RNS with a tasty new FS on our current site and some inferred information on Bougini West as to what might be there. Plus a JV as a cherry on top based on the SP at Li's current values. I do hope your tortoise is an indicator to this!!!
Time will tell AJ that's for sure. This is the worst stage IMO between getting the ducks lined up and financing. Let's hope BA gets it across the line. He's been so good so far so my confidence levels are still good in KOD. Just a bit of "long time between news nerves!" GlA
FFX our neighbours are flying with their Gangfen joint venture. They have more known Li but we potentially have more once all our concessions are explored. We do still gave enough to put us in the top 15 Li producers in the world. We are contracted to Sino Hydro, a branch of Power China, one of China's largest companies. We have an off take agreement in place with Sauy Chin. Yes many a junior miner collapses on Aim but we are at the dawn of a new era. Other Li juniors, Li Amercus Corps, BCN (got bought out -lowsey CEO), FFX, Iron Ridge have all been snapped up. Li is predicting to be in short supply for the foreseeable future. Is KOD a good investment right now. Do your own research.
Ivenoidea, in principle I agree comparing FFX to KOD is tricky. I had noticed FFX acquired the gold mine for £28 mil which doesn't say to me mega profits. Do correct me if I'm wrong. Their current Li reserve is around x5 ours. So without going through the calcs again a £250 - £500 mc is reasonable so 2p to 3p share if we avoid too much dilution.
However, the other factor I picked up on was Bouguni West that sits between our reserve and FFX. It's over twice the size of our current reserve and is highly likely to have Li on. Now if a major Li producer gets onboard as a JV they'll be wanting to know if Bougoni West is worth mining given we have an infrastructure share agreement with FFX. All speculation of course but in my opinion the value of Bouguni West might well be made clear in the next year or so, and if it is of value the plant capacities expanded to cope with it.
I just did an energy assessment today of a house, it has solar panels and a Li battery to store some of the energy collected. It's not just EVs that will need Li! It is looking like it will be in hot demand in the next 2-3 years and KOD to my mind looks like a very good investment to tap into this. GLA
Yes, let's leave the likes of Dazeliamy and Fart Jet behind us. They really were awful, ramp in the rises and then have a go in the down periods to try and get the SP lower. No appreciation for the fundermentals.
I do though appreciate the maths can baffling at times. It took me a while to get my head around it all. Fundermentally the market cap represents the value of the company at any point in time. The share is a fraction of the market cap. So the two are directly related. Our £45-£47 mil current market cap is tiny compared to our resource and potential. What we want to avoid is adding more shares into the market cap diluting (lowering) the value of each share. BA is a whirely fox though in my opinion, has his salary tied up in KOD's shares so will do all he can to avoid this in raising capital for the build phase of the project. Once we are built and making profit this can fund further exploration and plant expansion. KOD has so much potential which after doing the maths above I can really see now.
FFX are also beneficial to us politically. If they get going before us it will give investors confidence in mining in Mali. We really are on a win win hear if all our ducks continue to line up.
Good luck all!
I remember Dazadeliumy oh but he loved to dampen our spirits. 1bn market cap for 1p did he fail O-level maths or something? I'm guessing he is too old for GCSEs. Might even be getting concessions on his one bed by now! Oh well should have stuck with this little jewel KOD!
DrPineapple, yes it will be very interesting to see if KOD can get better terms from JV than FFX. BA seems like a very good negotiator and as he put it won't take low ball offers. It does feel like we are holding some strong cards at the moment: enough known Li to put us in the top 15 producers with more potentially available that would see us possibly breaking into the top 10. All to play for now and judging by how other exploration companies have successfully attracted JVs and buyers it is hopefully just a mater of time now. A buy out seems unlikely as not BA's style plus with a JV they can get on with building the mine while KOD carry on exploring the other 7 concessions plus pricing up the 200km2 Bouguni West site. I certainly feel very comfortable investing here!
They are back of the fag pack calculations admittedly but I wanted to get a feel for where KOD could go compared to the rest of the Li market. All encouraging stuff so I thought worth sharing. IMO gives a flavour of what we could be sitting on. I very much doubt our Market Cap will be at £46 mil for much longer. With any luck we'll avoid share dilution and the SP will move in line!
Oh who's been banned this time? It's not good old Fart Jet is it?
I've done a bit of a comparison between our neighbours next door FFX with the Gangfeng JV.
They have an annual estimate of producing 436,000 tons of Li for 23 years. So that's about a 10Mt reserve. We are looking to output 220,000 tons for 8.5 years. So that's a 1.94 Mt reserve.
FFX has a current market cap in £ of 590 mln, ours is 46 mln or there abouts. On our current resource value we're x5 smaller. So a market cap of around £118 mln is something we could have.
FFX has a SP of 0.85 aud or there abouts; no need for converting the SP as it is just for comparison. Their target price after production could be around 3.75 aud so 3.94 x higher than today. If we put our market cap to £118 our SP would be about 0.76p (strangely enough what Fidelity thought it's fair value was a few months ago). Now times this by 3.94 to give an idea of us at production on the current resource that puts us comfortably in the 2p - 3p range.
FFX and KOD both have gold but it is the Li for both where the real value is.
One major part of KOD though is our current resource is on a 97.2 km² plot of land. We have Bougouni West that's closer to FFX that's 200 km² plus 7 other land plots to explore. This all totals over 800 km² which, if and let's face it most likely, there is more Li there this could put us into the top 10 Li producers in the world.
Take a look at Lithium Americas Corp, another Gangfen JV currently $28.54 with a five year target of $115.
The age of Li is coming fast. I see no reason why KOD's market cap after we've adding another 10Mt of Li or so, which doesn't sound at all unreasonable, could well break into the 1bn if not more market cap region. Let's hope BA keeps share dilution - given he's in it with us at 0.31p - to an absolute minimum and we see the true value of KOD unfold over these coming years.
Any feedback or thought is appreciated. Lith Boy.
EVR the multi billion suspended yesterday, being linked to Russian tank production, Abramovich being targeted, 10 directors resigned today. Just goes to show how quick things can change on the LSE no matter how big you are. Glad I stuck with our little KOD fish here. Does anyone know how the political situation in Mali is now? Seems to have quieted down so no news is good news I guess!
Thanks Ghoti, no money is truly clean just some is a lot cleaner than others. I read the EVR board and just felt horrified how the talk was how the Ukrainian crisis will unfold to best suit the investors. Dress it up as you like but that was the short and curlys of it, so I choose to speak out this time, maybe one thought twice so worth a try. Our government may move very quickly and fast on it though, so one to stay well away from.
This does impact KOD and Li though, the move to renewables, cleaner energy (no energy is truly clean just some much cleaner than others). The UK will be talking about moving away from oil and gas even more now. I do energy performance certificates of properties, if you are going solar and if you haven't looked at it already look at heat source pumps via the government's RHI scheme. Cheers and good luck!
Evraz looks pretty Russian to me its billionaire CEO from Russia. I'll stick with KOD and Mali, despite its issues Mali is trying to move forward in the world and I'm happy to support them please sleep well at night with my investment. You know it anyway but the plug could be pulled on Evraz very quickly, it's in the hands of the politicians now and I certainly wouldn't want to be invested there!
EVRAZ plc is a British multinational vertically integrated steel manufacturing and mining company with headquarters in London, England. It has operations mainly in Russia, but also in Ukraine, Kazakhstan, Italy, Czech Republic, the United States, Canada and South Africa. Wikipedia
Stock price: EVR (LON) 87.38 GBX +9.42 (+12.08%)
9 Mar, 09:12 GMT - Disclaimer
CEO: Aleksandr Frolov (18 Jan 2007–)
Founder: Alexander Abramov
Founded: 1992, Moscow, Russia
Headquarters: London
Comparing Mali to Russia really? Mali, one of the poorest nations in the world, has been war torn but it is now trying to get itself back on its feet. There is an interim government but they are looking to move towards a democracy. There have been some bumps but they are working with their nieghbours. Mali is incredibly poor but has a great natural resource much needed in the fight against global warming. Mali has not invaded one of its neighbours and is not a powerful nation bullying a smaller nation.
Evraz is a Russian based company so putting pressure on such a company instead of launching a military attack against Russia makes good sense. I leave you all too it, your choice but I feel very uncomfortable investing in somewhere like Evraz given the atrocities going on in Ukraine. DYOR but I say sell out here find other investments else where!
Sorry but I'll stick to my sentiment, sell out here, apply pressure on Putin. Pressure on Russian working class families is better than bombs on them. Do you get that, do you really get that? The alternative to financial pressure is going to war. Bombs on them, bombs on us and don't think this is out of the question. History says otherwise. Continue the financial pressure, help those in Ukraine who are suffering don't profit from their blood.
Sell out here, just sell out and find opportunities else where. Peace!
I get what you are saying but something just feels wrong about investing in Russain based companies when applying pressure on the like to get them to pull out feels right. Better that than WWIII. No one wants that, what else can we do at the moment? Sorry but I'll stick to my guns on this one.
Anyhow, to the conversation here. The directors are invested at around 0.32p on a target reward basis so I doubt the place below this to their own detriment. BA strikes me as far too canny. GLA here.
I've not posted on here in ages but still thoroughly believe in KOD, no issues with a few delays Rome wasn't built in a day.
I have however just made myself rather unpopular on the Evraz board. It just makes me sick that many are doing what they can to put financial pressure on Russia yet others are trying to profit from it! Anyhow, if you don't want to feel sick to the core don't read the Evraz board as it is a pretty sick place!
No elections for six months by the looks of things but the report does indicate stability has improved. Well as long as Gangfeng and the like are happy investing in mines in the region, I'll trust their due diligence for now. Mali does have a layer of risk though, no doubt about it. However, if the mine gets built and starts producing steadily we should see a lot of profit here!