Member Info for Malik-

Exactly ;)
I even got harassed by someone on EMH board yesterday. Are some really thick and rude people out there. Their loss for being arrogant and closed minded...

And here it’s re-rating begins.

VUL had a solid PFS indeed. Good irr metrics. Capex was a bit higher than I expected though.
Vul remains attractively priced relative though given the huge Capex I think the c2x valuation discount to where EMH trades currently could take time to close. I do believe if anyone manages to get geothermal lithium to succeed; it’s Vul - they have a fantastic management team. For me it’s a question of time more than anything.

Hey Zeratul, these are precisely the numbers I am getting to as well ~6x upside from here assuming minorities are bought out, which the company intends to do. My first purchase late last year was also around 7. My average is 9.3.
Clear BUY

In conclusion, I see clear rational for the Zinnwald 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 on highly value accretive for the 44% shareholders, Bacanora (potentially 30% accretive on my numbers were). Meanwhile 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 a resource combination 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 this space,
3 parties in here: The Czech R, Germany and the Chinese...

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.

15-16p is way off what I think is fair value.
Have a read at my very long thread below.
This stock could multiply by 6x

Chameleonman. Yes, agreed. I think longer term we’ll also see Vulcan supply the Central European market.
And you do great commentary on Sav! Thanks.

Excellent commentary! Thanks

Zeratul. Exactly.
I also have some EMH and have been pushing this on the EMH board. I have been gradually building in Zinnwald and feel this story is completely under appreciated by the market; and valuations are very attractive here.

Off the record, I hold shares in EMH, Zinnwald, Savannah, and Vulcan in ASX.
My intention was to share my thinking, analysis, and findings.
I have only one hidden agenda: it’s to make money, like we all do via as much of an informed decision as possible.
So discussing the firm at your doorstep, and prospects of synergies is hardly promoting another company to your detriment.

Osaka. I actually think this is why the shares didn’t perform after the announcement.
People focused too much on the implied value paid by Galp for the 10% stake - the maths you show above.
What people are missing here is, as I said last time, is folks forget how much Cez paid for its stake in EMH’s resource; only in March 2020.
At the time, CEZ implicit valuation valued EMH’s 49% stake at USD30m.
Look at market cap of EMH today... it’s 6x higher.

... as the German counterpart to the Czech project is called, a merger could be envisaged, says its boss Armin Müller. He would only be a junior partner. But the owners could probably save a three-digit million sum.

Time is running out. Both sides want to start production as soon as possible, as the e-car market is picking up noticeably. However, an intergovernmental agreement would be needed for the cross-border mining project.

Lithium instead of coal power

A fork in the forest, next to it a cell phone mast and green hiking signs - here, one kilometer southeast of the drilling site with the campfire, the above-ground infrastructure for Europe's largest lithium mine is to be built. The forest administration, which watches over the state forest at this point, has reportedly already given the green light. Richard Pavlik, who, as head of the former sole owner European Metals, has been developing the Czech mining project since 2014, says: “It's very different from two years ago when nobody wanted to listen to us.” The new majority owner, CEZ, is something like that with its nuclear and coal-fired power plants like the Czech RWE, 70 percent is owned by the state. That makes a lot of things easier.

In the middle of the forest, Pavlik and CEZ man Cmelik want to drive the main tunnel into the mountain. 1.7 million tons of ore should come to light every year through it. Huge underground chambers would be hollowed out, in eleven floors, according to the plan. Above the ground, both want to build the processing plant including administration wing, a canteen and a restaurant for hikers. A pipeline almost nine kilometers long will then wash the rock down into the valley. A chemical processing plant is being built on the outskirts of Teplice, which will separate the metals by type.

Here is the translation of the article from Google:

How Germany and the Czech Republic want to benefit from Tesla's lithium hunger
11 January 2021

A Czech state-owned company is driving Europe's largest lithium mining project in the Ore Mountains. Now calls for a merger with the German parallel project are getting louder. Together they could make a great offer to Elon Musk.

A bucket hangs over the campfire, in it simmering soup made of water and dirt. Czech specialists need the warm liquid for their drill bit, which eats its way into the granite floor despite the icy temperatures. Here at Cinovec, near the border with Germany, a treasure is finally stored under the snow: tin, tungsten - and the largest known lithium deposit in Europe.

Lithium is currently indispensable for battery-powered cars, and so far the coveted element has to be imported from Chile, Australia or Bolivia, under conditions that are controversial in many places.

But maybe not for long. Because the mine that is to be built here could not only supply Elon Musk's Tesla factory in nearby Brandenburg with the raw material for lithium-ion batteries. The semi-public Czech energy supplier CEZ, which took over the majority in the mining project in April, is even thinking of a gigafactory in its own country.

At least that's how Pavel Cmelik tells it. The lean Czech, who trudges through the snow in fabric sneakers here in the Ore Mountains, is director of new business areas at CEZ, recently head of the emerging lithium mine, and above all, he has ambition. In the next few years he wants to use the mine to turn his country into a heavyweight in e-mobility, and his company into a major player in the industry.

The ore body on which Cmelik's hopes rest is 3.7 kilometers long, about 700 meters wide and 600 meters deep. Two thirds of it is under Czech territory and one third is in Saxony, where there are similar efforts to recover the raw material. While the German project is in private hands, politics in the Czech Republic is heavily involved. Prime Minister Andrej Babiš had already refused to mine the Australian investor European Metals in 2018 and later forced the entry of the domestic billionaire company CEZ. A service provider from South Africa is supposed to deliver the final report for the profitability in a few weeks - based on the drilling samples, among other things. The mine should then start work in 2025. It would be an industrial policy triumph for the Czech prime minister.

Also because the state on the Czech side is so clearly behind the project, those voices are now louder who have something bigger in mind - a cross-border merger, a transnational mining project. "Just because a state border happens to run right through the mine, it doesn't make any sense to build two mines," says Stefan Müller, who represents European Metals, which today holds 49 percent of the Czech project, on the capital market. And with Deutsche Lithium, as the German counterpart to

*offence

No offends but do you understand anything about M&A?
Were EMH smart, they would launch a deal now; paying 1/6th of its own resource multiple. When you pay something this cheap and you the acquirer trade at a huge premium vs the target; it’s hugely value accretive.
It’s simple maths

... as the German counterpart to the Czech project is called, a merger could be envisaged, says its boss Armin Müller. He would only be a junior partner. But the owners could probably save a three-digit million sum.

Time is running out. Both sides want to start production as soon as possible, as the e-car market is picking up noticeably. However, an intergovernmental agreement would be needed for the cross-border mining project.

Lithium instead of coal power

A fork in the forest, next to it a cell phone mast and green hiking signs - here, one kilometer southeast of the drilling site with the campfire, the above-ground infrastructure for Europe's largest lithium mine is to be built. The forest administration, which watches over the state forest at this point, has reportedly already given the green light. Richard Pavlik, who, as head of the former sole owner European Metals, has been developing the Czech mining project since 2014, says: “It's very different from two years ago when nobody wanted to listen to us.” The new majority owner, CEZ, is something like that with its nuclear and coal-fired power plants like the Czech RWE, 70 percent is owned by the state. That makes a lot of things easier.

In the middle of the forest, Pavlik and CEZ man Cmelik want to drive the main tunnel into the mountain. 1.7 million tons of ore should come to light every year through it. Huge underground chambers would be hollowed out, in eleven floors, according to the plan. Above the ground, both want to build the processing plant including administration wing, a canteen and a restaurant for hikers. A pipeline almost nine kilometers long will then wash the rock down into the valley. A chemical processing plant is being built on the outskirts of Teplice, which will separate the metals by type.

Here is the translation of the article from Google:

How Germany and the Czech Republic want to benefit from Tesla's lithium hunger
11 January 2021

A Czech state-owned company is driving Europe's largest lithium mining project in the Ore Mountains. Now calls for a merger with the German parallel project are getting louder. Together they could make a great offer to Elon Musk.

A bucket hangs over the campfire, in it simmering soup made of water and dirt. Czech specialists need the warm liquid for their drill bit, which eats its way into the granite floor despite the icy temperatures. Here at Cinovec, near the border with Germany, a treasure is finally stored under the snow: tin, tungsten - and the largest known lithium deposit in Europe.

Lithium is currently indispensable for battery-powered cars, and so far the coveted element has to be imported from Chile, Australia or Bolivia, under conditions that are controversial in many places.

But maybe not for long. Because the mine that is to be built here could not only supply Elon Musk's Tesla factory in nearby Brandenburg with the raw material for lithium-ion batteries. The semi-public Czech energy supplier CEZ, which took over the majority in the mining project in April, is even thinking of a gigafactory in its own country.

At least that's how Pavel Cmelik tells it. The lean Czech, who trudges through the snow in fabric sneakers here in the Ore Mountains, is director of new business areas at CEZ, recently head of the emerging lithium mine, and above all, he has ambition. In the next few years he wants to use the mine to turn his country into a heavyweight in e-mobility, and his company into a major player in the industry.

The ore body on which Cmelik's hopes rest is 3.7 kilometers long, about 700 meters wide and 600 meters deep. Two thirds of it is under Czech territory and one third is in Saxony, where there are similar efforts to recover the raw material. While the German project is in private hands, politics in the Czech Republic is heavily involved. Prime Minister Andrej Babiš had already refused to mine the Australian investor European Metals in 2018 and later forced the entry of the domestic billionaire company CEZ. A service provider from South Africa is supposed to deliver the final report for the profitability in a few weeks - based on the drilling samples, among other things. The mine should then start work in 2025. It would be an industrial policy triumph for the Czech prime minister.

Also because the state on the Czech side is so clearly behind the project, those voices are now louder who have something bigger in mind - a cross-border merger, a transnational mining project. "Just because a state border happens to run right through the mine, it doesn't make any sense to build two mines," says Stefan Müller, who represents European Metals, which today holds 49 percent of the Czech project, on the capital market. And with Deutsche Lithium, as the German counterpart to

... as the German counterpart to the Czech project is called, a merger could be envisaged, says its boss Armin Müller. He would only be a junior partner. But the owners could probably save a three-digit million sum.

Time is running out. Both sides want to start production as soon as possible, as the e-car market is picking up noticeably. However, an intergovernmental agreement would be needed for the cross-border mining project.

Lithium instead of coal power

A fork in the forest, next to it a cell phone mast and green hiking signs - here, one kilometer southeast of the drilling site with the campfire, the above-ground infrastructure for Europe's largest lithium mine is to be built. The forest administration, which watches over the state forest at this point, has reportedly already given the green light. Richard Pavlik, who, as head of the former sole owner European Metals, has been developing the Czech mining project since 2014, says: “It's very different from two years ago when nobody wanted to listen to us.” The new majority owner, CEZ, is something like that with its nuclear and coal-fired power plants like the Czech RWE, 70 percent is owned by the state. That makes a lot of things easier.

In the middle of the forest, Pavlik and CEZ man Cmelik want to drive the main tunnel into the mountain. 1.7 million tons of ore should come to light every year through it. Huge underground chambers would be hollowed out, in eleven floors, according to the plan. Above the ground, both want to build the processing plant including administration wing, a canteen and a restaurant for hikers. A pipeline almost nine kilometers long will then wash the rock down into the valley. A chemical processing plant is being built on the outskirts of Teplice, which will separate the metals by type.

Here is the translation of the article from Google:

How Germany and the Czech Republic want to benefit from Tesla's lithium hunger
11 January 2021

A Czech state-owned company is driving Europe's largest lithium mining project in the Ore Mountains. Now calls for a merger with the German parallel project are getting louder. Together they could make a great offer to Elon Musk.

A bucket hangs over the campfire, in it simmering soup made of water and dirt. Czech specialists need the warm liquid for their drill bit, which eats its way into the granite floor despite the icy temperatures. Here at Cinovec, near the border with Germany, a treasure is finally stored under the snow: tin, tungsten - and the largest known lithium deposit in Europe.

Lithium is currently indispensable for battery-powered cars, and so far the coveted element has to be imported from Chile, Australia or Bolivia, under conditions that are controversial in many places.

But maybe not for long. Because the mine that is to be built here could not only supply Elon Musk's Tesla factory in nearby Brandenburg with the raw material for lithium-ion batteries. The semi-public Czech energy supplier CEZ, which took over the majority in the mining project in April, is even thinking of a gigafactory in its own country.

At least that's how Pavel Cmelik tells it. The lean Czech, who trudges through the snow in fabric sneakers here in the Ore Mountains, is director of new business areas at CEZ, recently head of the emerging lithium mine, and above all, he has ambition. In the next few years he wants to use the mine to turn his country into a heavyweight in e-mobility, and his company into a major player in the industry.

The ore body on which Cmelik's hopes rest is 3.7 kilometers long, about 700 meters wide and 600 meters deep. Two thirds of it is under Czech territory and one third is in Saxony, where there are similar efforts to recover the raw material. While the German project is in private hands, politics in the Czech Republic is heavily involved. Prime Minister Andrej Babiš had already refused to mine the Australian investor European Metals in 2018 and later forced the entry of the domestic billionaire company CEZ. A service provider from South Africa is supposed to deliver the final report for the profitability in a few weeks - based on the drilling samples, among other things. The mine should then start work in 2025. It would be an industrial policy triumph for the Czech prime minister.

Also because the state on the Czech side is so clearly behind the project, those voices are now louder who have something bigger in mind - a cross-border merger, a transnational mining project. "Just because a state border happens to run right through the mine, it doesn't make any sense to build two mines," says Stefan Müller, who represents European Metals, which today holds 49 percent of the Czech project, on the capital market. And with Deutsche Lithium, as the German counterpart to