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I thought this was an interesting article about a new extraction technique. SP for the company concerned surged 40% in two days.
https://www.mining.com/web/gina-rinehart-backed-lithium-hopeful-surges-after-demo-batch/
Elcobbledor
Your quiet right. Like many others I was expecting a sustained surge in sp on conformation of funding landing. The surge was shortlived so I've reviewed my investment strategy accordingly in light of recent market reaction.
If the recent experiences of LEO & PREM have thought it's anything, it's that the road to success is fraught with unexpected difficulties. How many extensions to the long stop date did we suffer? License yet to be sorted? 12 month construction period wholly dependant on 3rd party design and fabrication?
Don't get me wrong, I am a KOD fan and will buy back in when the time is right for me.
Six figure loss? Not at all. I've been buying KOD for a couple of years so my average buy was sub 0.5. Took a £20k hit selling but I do anticipate buying back in when the sp stabilises - I still have a significant (to me) stake in KOD. But l belive we're entering a period of low RNS traffic and low sp stimulus which is why I predict further erosion. I could be wrong, but I'm happy to take my chances.
Regardless, good luck to all investors in what I think is a Stirling opportunity.
My 'stop losses' instruction kicked in this morning selling 30m shares at 0.41p. I was in a bit of a quandary for a while as to whether this was the way to go. On reflection I think there will be further SP erosion over the next year or so given anticipated delays and few anticipated RNS's - the next being confirmation of the license transfer.
I'll buy back in at sub 0.35p.
A JV is a specific legal entity. This is not a JV... never been referred to by Kodal management as a JV. Hainan are just majority share holders but are entitled to representation on the board.
The funding received is neither debt or a prepayment so nothing to repay.
If Hainan had been awarded shares FOC that would constitute dilution. They paid a market price (at a premium when the price was agreed) and the value of the company increased accordingly. Status quo.
Had dilution occurred, the sp would have crashed by about half.
The $100m (maximum limit) guarantee is a collateral warranty against failure to transfer the licenses in a timely fashion. Its unclear from the available information as to how a claim would be determined and administered.
Badoman - this may be (is) beyond your level of comprehension and understanding but in the light of the above, you may benefit from rereading the relevant RNS's.
Badomen,
You clearly have a fundamental lack of understanding of the deal that's been done.
There honestly is no debt to repay for reasons previously outlined. There is no dilution because there is no debt. There is no JV - Hainan are a (major) shareholder of the KMUK enterprise and a minor shareholder of the parent company. The $100m on performance related warranties is a cap, not an absolute.
Nough said.
What's to repay? The funding isn't a loan or a prepayment (like the Prem deal) this is an equity investment by the Hainan Group for which they were issued shares equivalent to their investment. Because they paid a market rate for the shares there's no dilution of the original holdings.