Proposed Directors of Tirupati Graphite explain why they have requisitioned an GM. Watch the video here.
Just read rns again and Noel is of course Gas. But my point is the same, let’s try and target oil for drill work.
Tonyn - exactly my thoughts re PTAL. I3e shareholders need to understand the liquid / gas proportion here. Hopefully the board are working to bring on more oil in Noel like wells. Will make it a much more attractive investment. Although gas has its benefits as less prone to to collapsing.
With £20m net, got to look at £100m mcap or 14.5p. Serenity news probably not in near future if other parties are re-joining discussions. Once it lands, could see another 5p added. Will all depend on the drill bit then. Looking very positive in 2021.
£20m net income predicted for 2021 (mirabaud expected £12m fcf). Current mcap is only £40m. Canadian assets typically valued at 5 times net income (250% immediate upside).
Surprised not seen a tick up in sp but guess some might be waiting until the t’s are crossed and Ganfeng have approval from the Chinese government. Usually a couple months.
I do think the board have undersold existing shareholders. They’ve taken out the potential multiples but still think BCN is a solid, if not really exciting investment. I’m hopeful the board take us over on to the main market as was planned. Not heard much about it though.
I thought the negotiations were "with the lawyers"? Would suggest reasonably advanced in Dec. Cost and timing are definitely big terms to agree!
Any farm out will be positive, agree that the project happening is the most important thing. We are not in a great position given our mcap and the results at Liberator. We need this development more than the partner will. However, rise in oil should provide a solid backdrop to get the deal over the line.
Have a feeling the ducks are being lined up and once news starts to drop then i3e will be in full swing.
I am reading a lot of references to Sonora's NPV lately and questions on the value/ sp that can be expected over the coming years. One thing to consider is that NPV is really only used to determine value of un-built projects and you would typically expect a mine to be valued at NPV by construction completing.
In Sonora's case, the NPV does not represent real value as the Feasibility Study only included an initial 19 years project mine life. We all know Sonora has the capacity for hundreds of years. In comparison Lithium America's Thacker Pass has a NPV of three times Sonora, with a little under double the capacity (60k vs 35k at Sonora). Lithium America's used an initial 46 year life of mine. My point being, Sonora's NPV in reality could easily double simply by adjusting the Feasibility Study's initial life of mine. Don't get too bogged down with 50% of $1.25b is only £450m.
Basically the big lesson here is Majid needs to stop putting dates on things. Do what every other company does and say Q1 or H1. If it comes in January, everyone is happy. If it comes in March, everyone is happy. There was no need to say end of January in that presentation.
Or he looks quite smug because he’s secured himself a job for the next 5 years at least? Probably making increasingly more money every year.
Sharealot - you won’t get a definite date. Primarybid simply releases a bath to your broker for the total amount of shares people bought with that broker. They also send a breakdown list. It’s up to the broker to distribute. You may be lucky and get them within a day, or it may take a week (or more) after the date they start trading (in our case 8th Feb). They don’t make this clear when buying and it seems a poor system. I’ve used primary bid once or twice, definitely can’t be used for a quick trade. Call your broker and may get it done over the phone.
I wonder how Bybrook, Premier Miton and Slater Investments are feeling about I3 Energy just now. They are probably less bothered about short term pricing but it must be a concern for them things perhaps aren't progressing to schedule. Would imagine they are in close contact pushing Majid and Graham along.
I'm still convinced the market just needs the evidence of profitability and happy to wait for that to come. Serenity farm out is a bonus.
Thanks, your posts (a few of them below) are correct and Ganfeng did subscribe to new shares in SSL. My misunderstanding. I do feel Secker a few times misguides us in terms of funding and project set ups. I'm assuming it is because Ganfeng by and large have a really good deal and things like this have swayed it in their direction. Let's be honest, the extra $14m to Ganfeng is nothing yet to BCN it would have reduced our placing requirement by 25%! That's where some of my frustrations are.
Ultimately I wanted Ganfeng in as we might not have got this over the line, there was too much cynicism from finance industry on 'clay' deposits. Ganfeng gave us the credibility and for that I'm grateful. We are better owning 50% of something massive than sitting on this deposit. Can't help but think we are just getting diluted out of something getting smaller. As posted elsewhere, we are looking at probably max 100p over the next couple of years. More when we start brining in cash and Stage 02 kicks in. We need to pay off RK Finance before registering a profit and we will have to fund Stage 02. Will be a long time before a profit is recorded. I've been in this 6 years and the thought of another 3 or 4 before more substantial returns may be realised is a long time.
Apologies if this reads negatively, it isn't meant to be. It's just my thoughts on where we are. The positive thing is we are at a base level here and should do well, if modest, but that isn't to be sniffed at on aim.
r7632 - I highlighted this when first looked at the deal. Somehow Ganfeng have purchased an extra 25% in SSL at a knockdown price. Then that money has stayed inside SSL and is being used by both companies. The remaining costs are then divided in two. It’s terrible business and seriously needs answered.
“ US$416m ("Construction Funding") which is US$444m total Project development cost less the expected cash in SLL of US$28m post completion of the Ganfeng Option exercise.” - that cash was payment to BCN for an increased stake, not working capital for both companies to draw down.
Surely the board should of taken this into consideration when placing. Ganfeng will dilute us all by quite a lot more. Why not withold some of the placing share for them? There is no point raising a penny more than needed at these prices.
Interesting it is broadly in line with VSA and they slightly increased their price target to 120p. I have purchased more at 46p, over exposed here but see this as a base. When the sp moves back to year highs in the coming months I'll sell down these extra shares. All news from now should only be positive and value accretive.
Serious question- could this placing have been done at 50 or 55p? Would have resulted in 10-20m less shares (giving in theory everyone an extra 10% value). The positive number would of helped sp. been in here since 2015 and honestly thought I’d be happy with construction financing being announced. I find myself thinking the board just doesn’t care for private investors. Mates rates. Even the way the primary bid was announced and closed in a couple hours (while out of hours) was to limit involvement.
Said last night I wouldn’t participate as the sp would drop to around 45p anyway. Primary bid take a while to give you shares and then they will lump send them to your broker. Your broker has to work out who got what and distribute. Can take a further week or two depending.
This level of dilution is disappointing considering we’ve also got a much smaller portion of the pie. Ganfeng have got an excellent buy in at a great time for them. They will have had a hand in the offer price no doubt as they could take part.
Ultimately BCN is a junior and this stuff happens. The failed fundraise a couple of years ago has set the company back and we never really recovered. It then became about getting it done rather than getting the best value.
In two minds whether to purchase more. 20% discount is from today, I imagine (being honest with ourselves) that there is a good chance the sp will hit 45p in the open market in the next couple of days. It usually does. Although with financing complete the sp should do well and a huge risk factor is removed. No doubt I won't buy and the sp will kick on instantly but I have plenty shares already. Typically miners rise gradually to something like 75% NPV during construction.
I'm not overly happy with is the 28m from Ganfeng going into SSL, then deducted from project total and BCN / Ganfeng splitting the remaining 50/50. That consideration was paid to BCN for increased share in the license and should be BCN's. Ganfeng should pay 50% of the project total surely.
It was actually disguised in 13th Nov 2020 RNS - "Ganfeng Exercises Sonora Option"
Bit of a non-news RNS but a step nonetheless.