Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Surrounded by Chinese sharks yes, but it doesn't smell of a take over in my opinion. I was in BCN and that went for a ridiculously cheap price to Gangfeng. The CEO was shifty as anything, BA on the other hand has agreed a SP based salary as have the other directors in KOD. So, I'd say a JV is looking more likely. Also Gangfeng haven't taken over FFX they've agreed a JV. The drop in our SP I'd say is a combination of churning through the new share release to purchase the 80% of the additional Li field and an old fashioned tree shake by the MMs. Be careful of selling now all as this could bounce at any given time!
A few points to consider in my opinion:
1) We knew the licence was coming.
2) There have been new shares released to purchase more potentially rich lithium land.
3) The next RNS's about new value of current land, potential value of new acquisition, JV which is looking the likely scenario given the directors pay structure relating to SP and targets and the gold value are all unknown.
AIM prices in the known, moves on the unknown. In my opinion I'd not be swayed by the current tree shake and sit tight for the next rounds of RNSs over the next 6 months. There could be a lot of movement north, far more than most have now been intimidated into believing by mr mm!
I was going to give a 2 out of 10 for the initial deramping effort of the subject line here but upped it to a 3 out of 10 for the creative way he/she pretends to be surprised. Well you ain't having my shares that's all I can say!
Agreed and let's not forget sentiment plus when (I hope) the licence drops the market will start to factor in the JV given the high likelihood of getting one given the current and ongoing demand for lithium. Let's wait and see though. GLA!
In other words Lithium is here to stay! The EV market is set to explode in the next 2 years, so 2023 will hopefully be pivotal for the junior miners. Don't be at all surprised if Gangfeng have a deal lined up with Kod, question is have the West now finally cottoned on a we'll see a price war to get KOD? My feeling is no Gangfeng are firmly in control in this region; that's just my opinion though!
Gangfeng certainly seem in control of the junior mines coming online at the moment. They have Bacanora and a joint venture with Lithium Americus Corps plus with our friends FFX next door.
Gangfeng can control how much goes into the market. In terms of demand Vs infrastructure, China are way ahead of us as are parts of Europe. I'm not sure about the USA. However, the change in the UK will take time. Point being plenty of other markets to sell to.
I'm unconcerned about other technologies at the moment. EVs have been in testing for years now. The key indicator was Formula E. If you want to know what's coming Formula One and the other Formula Series are by far your best bench mark. Many car companies use F1 not only to advertise but as a testing ground for new technologies. Hybrid is now standard in F1. I don't see any Formula Hydrogen so I'm unconcerned with Li being replaced.
At present is all about the Lithium and the other catalysts like Nickle go in. This is where we are, this is what the miners are gearing up for.
Not sure what your source for France pulling out troops over fears of Mali going the same way as Afghanistan. I can't find any such news.
We've also discussed this before and the Taliban and IS are entirely different. The Taliban, like them or not, are a political party representing the Pushoon Tribes which is the largest tribe in the Afghan region. 45% in fact. IS are a small separatist Islamic group with little support within the Islamic world itself. So not sure what your source is but I'd be questioning it.
Kodal's potential mine is in a well established mining region of Southern Mali far from the terrorist problems in the North. Also, keep in mind Frances own political agendas and bear in kind there is an international presence in Northern Mali fighting IS.
So all in all not sure how this will effect us. Besides China via Gangfeng are invested in the Li next door with FFX and they won't let their asset be jeopardises easily given tge rapid demand for Li!
It's very likely that as they approach stage one of production and if they haven't been taken over they'll move up to the FTSE. For us early investors comfortable with the volatility of 1p shares that's when our party will really begin. A lot of ifs but so far I have confidence in HZM as Jeremy and the team have done brilliantly to get this far!