Member Info for nomadicinvestor

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.

I stand corrected, had noted down wrong at the time. Majid does indeed say "we want to be in a position declare dividend in January and pay shortly thereafter". Which is disappointing as you would hope they would learn from past mistakes and not over promise/ under deliver. He should have just said Q1. Stating exact timings is never good. Also saying "we want" to the market is never useful, it's not about when you want to, it is about when you can.

I’ve posted many times that today is not a deadline. Majid stated “end of January or shortly there after”.

If Ganfeng had any interest they would not of let BCN sell it off. Secker has already said BCN won't participate in any funding for Zinnwald so expects us to own a much lower percent in future. BCN is Sonora, as simple as that.

Malik - there is no way Ganfeng have any interest in Zinnwald.

Bluegrass - my opinion is Zinnwald holds no strategic place for Gangeng or the lithium world at large. Yes, it can have a small role in European lithium supply but the reality is most batteries are made in China. Ganfeng and others have an abundance of hard rock deposits in Australasia that are up and running, with proven infrastructure and can produce at low cost (low in terms of hard rock of course, which is much higher than clay or brine). Zinnwald is not that large or strategic and served only as a distraction. Smallish hard rock plays are not massively interesting. Was the correct decision to off load and focus on making Sonora one of the largest mines in the world. I'd much rather additional funding/ capex was put towards increasing Sonora to 50 or 75k tonne rather than seeing it go to make Zinnwald which is only planned at 7k tonne carbonate equivalent.

In short, Zinnwald isn't required for Ganfeng's strategy and it suits BCN.

Deano1978 - the orphan phase is what a typical miner goes through when reality sets in after the initial hype and interest of a discovery. Different feasibility studies through to licensing and financing takes time (usually years) and the sp usually lags. There's also a large amount of cost incurred which creates dilution. I've learned from this in the past. Haven't always practiced what I preach as stayed in BCN through this phase even when I said I wouldn't. With HE1 I have a simple strategy which is accumulate now, hold for discovery and then sell. Probably after or just before the last drill, depending on the first two. Bag the profit and move on.

Agree with sentiment on board. I’ll be here for the drilling and deposit confirmation then be out (At hopefully a much higher sp). I believe if drilling successful and company does decent pr, we could see 20-25p. Not wanting to hang around for the orphan phase, seen too many mining shares drag through it.