Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
You haven't worked out, of course, that LC has driven Kibo into a hole it can't get out of - at much more than the current share level if that. His 'clear strategy' ever since 2012 has amassed so many issued shares, against so little value assets, that no matter what rabbits or projects he pulls out of the hat from now on can never deliver any significant value per share. Only more and more shares at the same or lower prices to pay for them in advance of any earnings. His 'master' stroke has been to invest in projects he won't be able to control, so will be dependent on the major shareholders agreeing a dividend which they won't need - whereas Kibo will be desperate for one. If Med really can be financed 'off Kibo's balance sheet' that will be a tiny start to an increasing value per share. But to be of any help at all to Kibo's lack of funds will need a vast number of such projects - and against Kibo's plan to be a 'key player' are a number of very large established ones with access to plenty of capital who will already have snapped up the best sites. Why do you suppose Balance Power is selling to Mast the moment it gets a site ?
The fact is that Kibo is now a self-inflicted basket case, grasping at straws, and prone to more MCPP accidents. Its why no analyst doing the sums properly would ever be able to foresee much future for it. The fact that it is now nearly within the grasp of the one-man-band who drove Beaufort into the ground says it all.
You obviously don't want to know about (or can't understand) the fundamentals of this share you seem attached to - like a kiddy's comfort dummy. To repeat. I post for the intelligent, who can understand numbers, and want to know what they mean for this share. And also for those who have experience of other shares - from which they have learnt to keep this one in perspective.
Its not a 'price' Its an 'implied value' (to the financiers, not to the shareholders, who need to deduct the cost of financing - including of the equity needing to be issued) Sorry to be pedantic. But its the correct way to assess an eventual share price
Immense amount of spending needed, and considerable share dilution, before this prospect becomes at all significant - if at all. African Eagle spent £ hundreds millions, at Dutwa, only to find no takers for its nickel and no funders to build it. Why do you suppose Votorantim pulled out ?
Expect LC to spin more yarns, trying to drown the full year results due mid June, which will lay out Kibo's dire finances, and possibly also write down MCPP and the coal mine, whose prospects are now too airy fairy for any auditor to agree the current balance sheet valuations.
If you look at all other miners over the last 10+ years, you'll not see the mine economics, no matter how good, reflected in the share price until much nearer production, and after funding, and necessary share dilution, is in much clearer focus. Professionals know this and won't be chasing the share price up, just as any predator won't.
Loan holders wanting to convert do so in their own time and for their own reasons. Nothing to do with NCCL or Hanno, so no message, subtle or otherwise.
If you're thinking the stated NPV is a guide to value, you'd be wrong. Fair value is likely to be sub 1p. Look at past posts.
Of course its always possible that ministers and officials slated to sign the docs have been diverted away to deal with the cyclones' aftermath
JD - But who is being 'bound' by the term sheet ? (Is it somewhere or us to read ?) Wimmer is being 'bound' to 'try' to find debt financing for Kibo's projects ( only once equity funders have stumped up) . It's not 'bound' to produce it - is it ? But meanwhile Kibo can't look elsewhere - can it ? That spells a one-sided deal to me, with Kibo having the weaker hand and Wimmer imposing its own terms. Not surprising given the reputation Kibo must have, and that presumably no one else will deal with it, except via an 'exclusive' deal, so the dealer can call the shots. As I say, this is LC whistling in the dark, and the 'term sheet' is no endorsement of ts credibility or ability to attract equity funders.
JD - Late reply due LSE 'server' balls up.
As you say, securing the 'promise' of debt gets Kibo nowhere without the economics. And we have no economics, and therefore no promise of equity providers. Wimmer offer their 'debt securing' services to all and sundry. It's their business, so they'll sign up anyone who needs it. The more desperate the need, the more Wimmer can demand 'exclusivity' and block the supplicant seeking better elsewhere. One has to ask, again, what happened to the Barclays debt finding ? Why aren't GE or Sepco offering to find debt, as GE CMCL, and others similar are promising for NCCL and ORCP ? All LC's 'announcements' are in reality whistling in the dark, and get us nowhere. And if you can't recognise a weasel wordsmith when he says 'he set out a clear strategy' in 2012 to develop his projects' - and the shares have steadily lost over 90% since, and 90% of the projects have gone 'phut'' - then what's 'clear' is that he has no idea how to increase shareholder (ie share price) value - only the size of Kibo, the size of his salary, and the shares he'll have to issue that will dilute whatever his projects deliver. Why else isn't he buying shares in his own company ? Take heed of SXX, where something similar is happening - clappies thought (and dodgy brokers said) 'what a big project ! - we're bound to make a mint ! - Go See ! And note the possibility that its equity shareholders might lose everything, with bankers and bond-holders the only winners.(As in Kibo's case of course will LC)
Unless LC comes clean and sets out his 'plan' to increase the share price, rather than to keep adding to his 'power portfolio' no one sensible will take any more notice.
Forthewin - The project is worth nothing until shareholders put money into it.
To understand the jda document, you will need to understand what a project is; what a 'project sponsor' is, and what the relationship between them is. Given that you seem to understand nothing of any of it, I don't rate your chances high.
They are investing in 'the project' - not in NCCL. Perhaps you should look up the difference ?