George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
3 - 4p a share is where we should be based on the current fundamentals of producing 12,000oz+ of gold this year, with a group resource of 1.5mil+ gold oz. So just 200-300% upside from this level. That's about $22,000,000 revenue if we assume an average gold price of $1,850 this year (could be much higher, maybe even $2,000+ this year...)
Once the expansion work is complete in Q2, we demonstrate 2000oz of gold production in a month / 24,000oz per annum, the group resources hits 3mil+ oz (the additional licence is granted along with the drilling to upgrade the resource), the roadmap to get the additional projects producing is demonstrated, then this should be heading towards 6-8p. This should also be possible this year as we know these developments are well underway and being accelerated through the placing funds and the drills rigs.
At some point later next year, we should have 3 producing gold projects and further acquisitions in east Africa secured, all funded through the group revenues. 10p+ isn't far fetched then, as that's the boards original vision if you refer back to the early interviews. They always stated they aren't here for a few pence a share.
This is why GCAT is one of my biggest holdings. When it listed, it was several years and steps ahead of pretty much every gold junior available at a similar market capitalisation. I am very confident with this one that it's a 5-10bagger with a bit of patience.
People will be happily paying 2p and 3p a share for this at some point in the near future, this year no doubt. Significantly de-risked now, revenues coming in, motivated + communicative board and multiple projects to turn this into a great gold producer.
Not much else like it on the markets for these prices.
Lithium price at a new high,, demand only increasing, supply only getting more constrained.
Bougouni one of the last lithium projects listed in London at this level mcap that is ready to go.
https://kodalminerals.com/project/bougouni-lithium-project/overview-highlights/
Meanwhile, that gold price too...
The RNS may have been vague and disappointing to some, but really it alludes to something big brewing behind the scenes imo.
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Bougouni Lithium Project
· Kodal technical team completed site visits in January in preparation for development activity.
· Development work ongoing, including a detailed LIDAR (light detection and ranging) survey to commence in late February for use in final development planning.
· Meetings held with local Governor and officials and local Chiefs to update them on Kodal's proposed activities.
As, I've stated before, we know in the December interview he stated there are interested parties and we also know they have been highlighting Gangfeng in these interviews and on social.
PREM had 14 interested parties sniffing around it and so I really do believe Kodal will have a similar amount of suitors lining up or more due to having the mining licence already secured.
"Final development planning" "Meetings held with the local governor".
Hmmmm....
Over 20mt resource, mining licences during a global lithium boom with the biggest companies sniffing around.
Look at the sub 100mil mcap and you'll see how undervalued this is. Just Bougouni with an operating mine would elevate this to a 1bil+ mcap over time, 20x bags from here. That's not factoring in the Bougouni West and the gold projects.
Just like PREM, all it'll take is a confirmation of early / preliminary discussions and 100-200% in a week should be expected.
Check out the the December interview regarding interested parties. With the mining licences in place, there'll be great interest in Kodal here that will be RNS'd soon.
A project that can quickly be in production with the mining licences.
Kodal is far along the road here and with the mining licences already granted, I can see this easily going well north of 0.40p soon. Lithium shares are re-rating to mcaps in the hundreds of millions.
Just like PREM, I envision the board is getting a lot of interest, including from Gangfeng. We've had enough hints through the CEO comments and recent retweets.
Rookie question about our stockpiled gold, but:
"Total gold in stockpiles at the end of the quarter was reported at 2,919ozs."
So lets just say we have 4000oz in stockpile right now, we could sell this for essentially $7.5mil at the current price of gold (approx $1860 per oz), correct?
If so, thats an incredible amount of money for a newly listed junior to keep reinvesting and growing.
Many sat around with PREM looking to top up, but the lithium market and tenacity of those seeking deals means these shares won't be at such prices for much longer. No doubt the herd is going to come here. Strong volumes today.
All it will take is for the next RNS (which is now long overdue) to confirm there are early discussions for this to fly. I think KOD and PREM will both price correct and it's one way. ^^^^
They're both JV / acquisition targets of multi-billion dollar lithium companies, particularly from China and its on the record now rather than a ramp.
PREM is a fantastic share and I'm glad to be a long-term holder there. I also had a small holding here at KOD which I've now increased due to the market conditions surrounding Lithium.
Unlike PREM, KOD has a completed DFS, approved mining licences and the Bougouni Lithium Project is nearly ready to go towards the next step.
The December investment presentation couldn't have made it more obvious that there have been serious talks going underway with big lithium players: https://youtu.be/qJ9ujXihA2g
Gangfeng is named dropped a few times and long with this recent retweet from KOD, I do think a big deal is going to be announced very soon, either with Gangfeng or one of their competitors in China.
https://twitter.com/SharesChat/status/1490965467904847872?cxt=HHwWgMC97bHM_LApAAAA
All the lithium projects on the ASX and over in the US have market valuation of hundreds of millions / billions and so it's great to see the London listed plays in this sector finally re-rating to receive fairer valuations. Was bound to happen given the rising lithium price and money being thrown to invest in these assets.