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North Mali has the trouble but South where our mone is relatively stable. FFX breaking the 1bln is very significant for us. We have, as has been said, additional land plus the 80% in the other Li reserve we acquired last year. If KOD breaks 1bln mc eventually I take it with my fag packet maths that's x20 where we are today. So, SP at 6.6p about where I've always had in mind to sell. Good days ahead it could be!
Geography also plays a big part in this. North Mali is where the trouble is in the Sahara region. South Mali where our mine is located in the mining region is relatively peaceful. The North and South are almost like to different countries; worth keeping in mind.
Mining SPs can be like this, and the market is likely to be holding off until we find out the finance package. Once we know this and I feel BA wants the best long term deal for investors as he is one too, we should see a gradual move North. When production starts to close in that's when we are most likely to start spiking. This is a long game and one, personally, that suits my temperament. Good luck all!
Exactly and let's not forget the Cobalt which if you look on the London Metal Exchange is now listed in their EV section. HZM is still a cracking investment and the ii's know this. They'll wait until the dust settles on the raise and then start making their moves I suspect!
So add in Canada and we are looking around a £328 mc equivalent. We have x4 the resource and they have about 60% of our mc. So we are looking at say x2.34 there mc. So taking out Canada that would give our mc x1.7 what it is at 6p, around 10p. Remember though we are looking at pre dfs for our friends with the other mine. So around 10p should be at least where we are now if it wasn't for the current transition period. Let's see where it goes as construction progresses.
Centaurus have 80.6Mt grading 0.91% with a market cap of $400 mil AUD so equivalent to about £200 mil. We have Araguaia 119 Mt at 1.27% plus Vermelho 145 Mt at 1.05%. So our resource is x4 larger. If you take account of HZM in Canada which has a market cap of £104mil that totals around us £200 mil mc but our resourse is at least x4 bigger. So that puts the SP on the LSE at around 23.4p. Centaurus is only at the definite feasibility study phase so, I'd of said HZM could easily pass 23.4p as we approach production. I have to say in my opinion all this talk of 15p max at production just doesn't tally to the size of the resource. The Financial Times analyst had us at around 29p come the end of the year. Personally I'm unconcerned by the current SP and just see it as a transition phase plus AIM shenanigans. I'm happy now to sit back and let the guys at HZM do what they do best and that is run a company well in my opinion.
I'm relatively new to GGP but not mining shares on the AIM. My dicision is simple, I'll hold for 2 years and then see where we are. I empathise though with the frustrations on here, but if you are an experienced investor in the mining sector you'll know that "tree shakes" happen and you just have to hold your nerve. Good luck all!
I'm relatively new to GGP but not mining shares on the AIM. My division is simple, I'll hold for 2 years and then see where we are. I empathise though with the frustrations on here, but if you are an experienced investor in the mining sector you'll know that "tree shakes" happen and you just have to hold your nerve. Good luck all!
@Apprent1ce that's ok, just my opinion. I think people can over think stuff on here at times, which has it's place but then so do the fundermentals:
Is there Li in the ground? Yes
Do Kod have the contracts? So far so good
Will people need the Li? YES!!!
To me this is a good investment to have in one's portfolio and Mali isn't as bad as it is made out to be particularly in the region where KOD is. As ever dyor.
Without going into the calcs I've always though 6p to 7p around production time on sentiment. So 2023/24 which also coincides with EVs really hitting the markets according to some analysts. One can never know but I'm holding until well into 2023. Right now, just an AIM dip, the fundermentals of the company remain very promising: Li in the ground, JV partners swarming around, EV revolution on the way!
Also keep in mind that it's only very recently that Spod 5 has become commercially viable. Why would BA assess before this if it had no value then? Spod 5 now does have value so they have to now spend some time getting this right. As for potential JV partners, just take a look at Lithium Americus Corp, ffx, bcn even. There is more interest in Li than you can shake a stick at. Virtually all car adds are now EVs or Hybrids. So, I for one are unconcerned about our dip due to trader's usual. As ever dyor.
Agreed and another point, BA said "more news within six months" not "in six months". This means news could come tomorrow for all we know and not next March. And let's not forgot the directors all have substantial share ownership here in KOD. So be careful of selling and thinking you can come back next March you might well be caught out in the meantime!!!
I've learnt not to pay much attention to boards like this after a major piece of news. The de-rampers come out in force, so I let the dust settle then take another look. As far as I can see HZM have transitioned from an explorer to a mine constructer on a major scale. No small feet and what it tells me is HZM are a very well run company, Tech, Glencore and others think so and they know there beans inside out. In my opinion good things lay ahead for patient long term investors. Just ride out this storm and ignore the bull****** who always come out the wood work on major RNSs. They are out for themselves and no one else!
I'd agree, we're going through a short term dip on the dip and the placing of new shares at 7p. Ride this short term dip out and there will be rewards. Keep in mind their EV mine us yet to be factored in and in my opinion they are a very well run company. Raising what they have was never going to be easy but it indicates to my mind confidence in HZM to deliver and improve on 7p significantly from multiple parties. Just hold or top up is my opinion.
10p might not be as far fetched as it sounds. A big market cap for a company of this size but then we have more Li now from the additional 80% purchase, Li 5% to be priced in along with the 6% repricing at current Li price demands. Add in a good gold result plus Mali forming a democracy around next Feb and I can see this going to 6-7p so on sentiment why not 10p?
I sure do hope you are right. It is odd though we have such a low SP and market cap given the position we are in. Let's hope the re-valuing of the Li, gold news and financing package send this one flying. They'll come a point where the buying demand will simply push the MMs to raise this SP north. Hold tight is all I can say!