Member Info for nomadicinvestor

I think the frustrating thing is we are all here waiting news, waiting progress. It finally happens and is good, yet the company make the most basic of mistakes in not communicating the news properly. Wide scale confusion (especially by those not invested and I don’t blame them) has caused BCN to lose value yet again. Surely they must have learned a lesson over the last year. Communication is key. We’ve spent so much money getting to where we are, hire a PR firm and get in a communication director. Spend a million quid on them and it will provide more value than Peter Secker does through corporate activity. The only hope is that in six weeks when this is confirmed, BCN give a proper explanation of the situation and the market reacts. Perhaps last years failed pacing just makes this another ‘go’ at it. Let’s see. Only good thing is we aren’t dropping much below these levels so it’s a fairly easy ‘hold’.

Clarification from the board would be great and to be honest should be a requirement of their duty to inform us. I suspect Oman and Hanwa come into it if Ganfeng don’t take up the further 22.5%. I notice VSA Capital releases a note that reduced their target to 100p and stated we have 180m still to find.

Have to admit I’m unsure how the 30% shares result in them paying that proportion of the funding (unless was agreed with purchase). 22.5% project level investment is easier to understand. I assumed 50% of construction cost only happened if they increased their 22.5%. Anyway bottom line, BCN are now fully financed to build Sonora and we have a great partner on board. Once again Peter Secker has confused the market, not sent out clear messages and the market has reacted as such. Until funding is finalised and confirmed complete, I understand PS has to watch but there’s no reason why there isn’t a ‘Sonora receives full funding’ RNS with the conditions clearly spelled out.

It says 11:00am BST in the RNS this morning, yet the presentation link says 11:00am GMT. I think we have to assume it’s 11:00am BST. As in 10 minutes.

Secker said in his interview yesterday that Zinnwald was due to complete in Q2 and will be published before the end of it. He knows the figures already and said we would be happy. Like the financing, I think it will come early. Possibly in 3 or 4 weeks (rather than 6).

Having digested the news, I’m convinced this is as good as we could have got. If Gangeng up to 50% then they are putting over $250m or so into the project. They will bring expertise and savings both in time and cost. This is great for current shareholders. The value this unlocks is huge and we are finally going to have a team in place that can push this forward. I’m convinced things will now start to happen. Ganfeng will have Sonora churning out as much lithium as it can and as quickly as it can. The market will settle and realise this but I hope the company ‘sell’ this to the market. We need better PR than Secker boring us over two little interviews. He just doesn’t sell the project and assumes you have knowledge of it. Again, people should look at ECO and what Gil did over there. Very similar type deal with Total and worked completely in ECO’s favour, though they went and sold it to the market.

On the face of it at first reading I thought this was terrible. But it’s clear the time to finance Sonora was last year and the company royally messed up. Our chance of a ‘good’ funding package is gone. Now we need to get the best available package. Given our position and share price, the current board can not get the 100% funding. The only option has been to reduce our stake, thus our commitment. However frustrating, this is not necessarily bad. Many people were angry with Eco Atlantic Oil and Gas sold 25% (out of 40%) to Total for Guyana asset. But in doing so their financial commitments were greatly reduced and more manageable for a small company. It’s gone from 16p up to 90p. Aim miners are almost valueless long term unless they actually get stuff out the ground. This will allow that but I suspect the market will be slow to realise this. We need a better strategic update RNS to explain in plain English the situation.

Yeah I can’t really deal with listening to a whole presentation by Secker either. Would appreciate knowing when finance is spoken about. Skipped through but can’t seem to find it.

That 30p is a nuisance. Just won’t go.

Ready to push higher soon. This is the share that just keeps on giving, not even drilled yet.

Considering it was meant to be finalised Q1, then pushed into Q2, I had hoped for not the end of Q2. I should have known better. Never know but just can’t see an end to this financing saga. I’d honestly be very happy now with selling at anything over 100p. Averaged down enough that would still make a tidy sum. Secretly hoping for a more generous offer.

Agreed - don’t think I’ve ever seen such a needless RNS. It’s not even as if news is delayed and they want to reassure shareholders. Bit strange.

I do worry about the spin off. As a (very) long term holder, it seems like Zinnwald hasn’t increased the sp as expected. With funding issues/ delays at Sonora, it seems that the board want to mitigate this risk at Zinnwald by securing the equity funding at spin-off IPO. I can’t see how existing shareholders (who currently own 100% of Zinnwald) would benefit. Most likely we will retain maybe 10% or something. It’s a shame as the production from Sonora was meant to help finance Zinnwald in their long term strategy. With Zinnwald funding the next mine and so on. Like most things this hasn’t materialised and existing shareholders are bearing the brunt of it, with new shareholders no doubt doing quite well. Secker has a month or two to prove me wrong. His line of ‘always looking out for existing shareholders and creating value’ will be found out one way or the other.

BCN seem quite good at not being leaky when it comes to news. Usually you see some big price movements before big announcements but don't think it will happen here.

Having gone through the pain of last year and deciding to hold, there is no way I am selling until after production starts. I'm still of the opinion that the funding will mostly be from joint venture partner rather than equity. Equity just doesn't make sense at these levels (and the likes of Hanwa won't pay a 400% premium to sp).

Couldn't agree more. Brought in some cash reserves at the perfect time to alleviate any worries and to firm our position in the block. It's just a classic Gil getting it right.

I bought ECO during the IPO and subsequently bought large again at 16p. The communication and strategy has been spot on the whole way and Gil has delivered on every word. That's why the sp has been strong.

Guyana will be huge (I'm not yet convinced of Namibia but that is irrelevant for now). ECO will be sold within a year in my opinion and it won't go cheap. Gil is so confident in the sell, saying 'it's not a question of if or when but how much?'. I believe he's been told by Total already that they will buy our share and probably already agreed a price per barrel. That's why we gave them the first 25% so cheap.

I'll love it when its back above 60p.

KDNC

The KDNC deal is the same as the Hanwa one here. They’ve agreed to take the product but MacArthur still need to finance the mine. Which we all know is the tricky bit. It’s easy to sell a product into a market.

If hanwa invest and become the 'cornerstone investor' I think it will be the project level funding option Peter Secker spoke about. Will probably give Hanwa 30% or so of Sonora in exchange for the remaining $220m required. Not sure if Hanwa would then forfeit their conditional equity participation or amalgamate into this. Oman would still be equity based but I imagine at higher levels if rest of funding is confirmed.

L2analyst - 100% agree. These guys need their 5/6/7% profit each year and they always sell down some of their big loss makers in years when profits are high and it gets slipped under the radar. Very typical behaviour. Not sure why some posters and speaking about institutional inverstors like they are retail, very different strategies and buy/ sell motives.

This is good news as it confirms why we are where we are. In a fairly illiquid stock, we've had three big shareholders lessen their holdings. That's going to have a big effect. No doubt there will be a hangover of stock and will take a bit to clear but after that should see a steady rise until funding. I think we may be surprised when funding is announced, nearer that start than end of Q2.