Member Info for Malik-

If we merge with EMH, the combined entity would have output potential of >35ktpa making it the LARGEST upcoming lithium producer in Europe.
A very significant player overall.

It is naive to think the Chinese would not be interested in Having a pie of European lithium resources.
The Chinese own: 1) the electricity grid in Portugal 2) stakes in the companies which are building new nuclear in the UK 3) involvement in Pensana which will build a rare earths processing facility in uk. 4) were keen on 5G in Europe.

The world of lithium and valuation have changed dramatically since November/Biden election. So what may not have looked as a relevant opportunity then, has become one today; and Bebe more so once the hydroxide market tightens this year and price soar...

The Zinnwald data point in the above chart effectively summarises my valuation bull case on the stock. And this is before any upside we could well see this year from a surge in hydroxide prices as the market gets tight.
I also own Savannah. I have just sold out of Vulcan.
EMH I hold small.
I am confident Zinnwald will buy off the 50% minorities in the project and at a very favourable terms since the counterpart is bankrupt.
That will be a game changer. Very interesting and likely action packed year ahead.

I think you are mistaken...
This is the same deposit as Cinovec on German side of border. Yes it’s small but when you consolidate with EMH... well you get economies of scale and no don’t need two plants and raise your IRR; on improved economics.
I see clear rational for this asset to see light of day. I expect a repricing of the low resource multiple Zinnwald trades on, and assuming they buyout the 50% minorities in the resource; this could be massively value accretive for the 44% shareholders, Bacanora (potentially 30% accretive on my numbers were). Moreover the Chinese via Ganfeng have 26% stake in Bacanora and I am sure they would love to keep a holding on Lithium in Europe. For EMH, we have discussed already that economies of scale and low Capex should make this appealing. Meanwhile wouldn’t Germany like to have a local lithium resource to partially feed their battery needs; instead of relying on the foothold of the Czech Republic government which has a 70% stake in Cez?
I think this could be a very interesting year on the space,
3 parties in here: The Czech R, Germany and the Chinese.

I posted the following on my Twitter page.
I did a chart comparing the valuation of key lithium players.
Thought you’d find it useful/helpful; and see why I think an integration would be VERY value accretive for EMH; since Zinnald trades at such a substantial discount...
https://mobile.twitter.com/Malik49977264/status/1351120278559084551

I posted the following on my Twitter page.
I did a chart of the valuation of key lithium players.
See where SAV trades: BIG discount to peers! Time for CATCH UP
https://mobile.twitter.com/Malik49977264/status/1351120278559084551

I posted the following on my Twitter page.
I did a chart of the valuation of key lithium players.
See where ZNWD trades...
https://mobile.twitter.com/Malik49977264/status/1351120278559084551

I posted the following on my Twitter page.
I did a chart of the valuation of key lithium players.
See where ZNWD trades: MASSIVE discount
https://mobile.twitter.com/Malik49977264/status/1351120278559084551

Yep agreed :)

This is a game changer for the prospects of company this year.
A 60% in capacity over and above Feb; should translate into a similar increase in revenues.
It’s a massive deal!

Dedicated capital increase 8.5% dilutive for a monstrous c60% increase in capacity over above the level of February...
This would make it one of the largest miners, and in my view enable it to head north of the $1bn mcap mark.
No brainer, buy on any weakness.

Zinnwald has indeed right of first refusal on that stake.
And I am confident they would be very keep on taking it.

Share p following Bitcoin price with 2x sensitivity.
Makes no sense since the shares are discounting a Bitcoin p well below spot.
Given high margin, and high capacity, no reason why stock should not have mcap of $700m at current Bitcoin p looking at where peers trade.

Vulcan published its PFS; which although had big Npv numbers, had very big Capex. Irr of 26%; Capex of almost usd2bn; and challenges still on making geothermal lithium work...
Now Vulcan is trading at a 25% premium on a resource multiple basis to SAV.
Sav has superior IRR, significantly lower Capex and finger tips on offtake.
I expect a valuation catch up very fast!

Yes by Zinwwald - they previously said they have right of first refusal.

Right of first refusal has been transferred to Zinnwald.

I think that agreement between Galp and Sav is really interesting; key for the whole sector; and something that could just be the start of trend we are about to start to see.
When we get more Oil&gas integrated companies really start getting into Lithium; with their massive balance sheets; this sector could really explode.

Really? What your argument?
It makes perfect sense. Read all the commentary i wrote yesterday
Zinnwald and European metals share the same resource on both side of the the border between Germany and Czech R.
A merger between both sides of the asset makes sense since you have plenty of synergies. Not two mines but 1. Not two processing plants but one. That’s IRR uplift for the projects, and you get economies of scale.
Zinnwald whome you Bacanora own 44% would see the value of your share rise by 30% just of the multiple of Zinnwald re-pricing up to EMH’s.
It’s a big upside lever to you.

Price target should be lower than EMH... I DISAGREE
Capex would be very low since would consolidate assets. Huge irr.
Re-read what i wrote yesterday:
“ In conclusion, I see clear rational for this asset to see light of day. I expect a repricing of the low resource multiple Zinnwald trades on, and assuming they buyout the 50% minorities in the resource; this could be massively value accretive for the 44% shareholders, Bacanora (potentially 30% accretive on my numbers were). Moreover the Chinese via Ganfeng have 26% stake in Bacanora and I am sure they would love to keep a holding on Lithium in Europe. For EMH, we have discussed already that economies of scale and low Capex should make this appealing. Meanwhile wouldn’t Germany like to have a local lithium resource to partially feed their battery needs; instead of relying on the foothold of the Czech Republic government which has a 70% stake in Cez?
I think this could be a very interesting year on the space,
3 parties in here: The Czech R, Germany and the Chinese.”

Looks like the market finally started to wake up on the Zinnwald thesis - shares soaring.