Member Info for observer842

It turns out from the annual report that "the outstanding balance of $6,130,034" of the CLN's after the restructuring in November 2017 is a couple of hundred thousand less than that reported at the time: "$6.45 million" - which is nice eh? @Bannor! ;-) Presumably because it was only ever approximately 50%, and now we know the exact values? Ob.

Page 43: "CADENCE MINERALS PLC ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2017" (25 May 2018) http://www.cadenceminerals.com/wp-content/uploads/2017/06/Cadence-Minerals-2016-FINAL-Document..pdf ===[ During the year ended 31 December 2017 the company acquired a net 7,424,000 shares in MacArthur Minerals Ltd, and the company also disposed of its remaining 3,636,563 shares in Hastings Rare Metals Ltd and 9,861,857 shares of its current shareholding in Bacanora Minerals Limited, Available-for-sale assets comprise investments in listed securities which are traded on stock markets throughout the world, and are held by the Group as a mix of strategic and short term investments. ]=== @Frankie. It continually surprises me to hear that you continue to buy knowing how little you purport to! ;-) You know the big returns we bandy about on here carry a big risk right? Even the BoD think so. Look at their estimates of achieving their freebie share options on page 49: ===[ It has been assumed that the likelihood on the options of the three sets of options vesting is 60%, 20% and 10% respectively, and the share option has been calculated accordingly. ]=== Sounds about right given the share price at the moment. Of course, if it all comes together nicely over the coming months those odds will rise. And yes if it doesn't, they'll fall... That 60% is a good risk to return from here ;-) Ob.

What we know: Sep 2016 we had 21,182,915 shares (BCN sedar announcement) Sep 2017 we sold 8,897,857 shares down to 12,285,058 shares (BCN sedar announcement) We currently hold around 8% which according to BCN's AIM Rule 26 page is 10,720,000 shares. In our end of year report we reported that in 2017 we sold 9,861,857 shares. Therefore by my reckoning between Sep 2017 and end of Dec 2017 we sold an additional: 9,861,857 - 8,897,857 = 964,000 shares And that since the beginning of this year we have sold a further: 12,285,058 - 10,720,000 - 964,000 = 601,085 shares But at what price? Hopefully since the release of the feasibility study and NextView announcement - above the fabled pound!? Perhaps we can divine the answer from the accounts... ;-) Ob.

Your're cracking me up @maddog. But i'll humour you I suppose... How much do you think BCN (of which we own around 8%) is worth to us today? How about EMH (of which we own a little more than 20%)? Once you've figured that out, go on over to the respective LSE boards and ask their shareholders what they think their share price will do in the coming weeks/months. ;-) Ob.

@spring. Of course it's legal - in fact representing it any other way wouldn't be! The accounts are for the end of 2017. Now of course if since then the 119% had grown I'm pretty sure they would see it fit to tell us, perhaps by producing another column in the table to end of March or April 2018. But should they do that if it doesn't shine a favourable light on the company? In fact why would they do that? I'm sure some on here would rip them to shreds and accuse them of wanting to bring the share price down so they could buy lower...

they work for me. ;-)

no.

@maddog. I can't stop laughing. Really I can't. Do you even know what "book value" is? I'm sure you are doing it on purpose to give us all a laugh ;-)

"not including EMH and HAS" should read "not including EMH and BCN", I've got HAS on the brain today :-)

@maddog. The �5m figure came from a presentation by @Kiran a few months ago, and it comprised of the sum of our cash plus available for sale assets not including EMH and HAS. i.e. cash + MMS, AOU, CLY, NMX, HAS (which we learnt to day we have likely sold for around half a million pounds or so). At the time we had around 4.5-5 million in debt, meaning that the share price was based pretty much on EMH + BCN, which it was. I can't spell it out any clearer than that. Please don't ask me again! ;-)

@spring. Pretty sure @maddog can explain the 119% to you, I've explained it to him enough times! ;-) Alas, I think he still doesn't fully understand ;-) Historically the market was willing to value us on both our listed and unlisted assets. In days of old (above a penny!), we were primarily valued by the market on our unlisted assets, now we are valued primarily on our listed assets. You'll see that the 119% is talking about growth in our listed assets to end of December 2017 (according to how much we have invested in them). Of course the share price of our listed assets have fallen since then (possibly because we were selling BCN!). Hopefully that makes perfect sense to you? ;-) Ob.

"not the �5 million the board was branding". Try picking up the right end of the stick for once @maddog! LoL ;-) Not once did the BoD say we have �5m in cash...

@Bannor ;-). Re @Kiran's salary. In the summer of 2017 webinar I was led to believe he had reduced his salary at that point by around 38-40%. However I'm pleased to see that they have reduced in 2018: === Administrative costs decreased by approximately 30% for the period to �1.80m (2016: �2.22m). We anticipate to be able to deliver further cost savings in the coming year. Subsequent to the year end, Directors cash remuneration reduced on average by some 28%. === @Bannor: "less cash, less assets, less profit" - don't forget less debt! ;-) Re San Luis, we should get clarity on whether the number of shares are fixed or whether it is related to the share price at the time. Likely the number of shares, but I've been quite wrong before now so it wouldn't surprise me if I was again... Yangi: if it's mined between sometime in year 10-20 then it's worth something to us (same as our Sonora JV!). Note we sold our HAS shares almost certainly higher than what we purchased them for. Talking of which, we finally have an answer to what we were discussing last month: http://www.bacanoralithium.com/investor-relations/aim-rule-26/ === (3) Cadence has confirmed to Bacanora that it now owns approximately 8% of the company�s shares. As an Investment Company, Cadence is only required to file a TR-1 when it crosses the 10% and 5% threshold. === Let's just hope we were selling the 1-2million BCN share on the turn of the year spike! We might be able to deduce the timing from the accounts? Other than feeling mislead by the salary reduction, which I suppose in hindsight he might have been talking about total remuneration (including share based payments/options), it feels an OK annual report to me - nothing particularly surprising! Although I might have to have another read... I continue to wait with bated breath for the apparently imminent BCN and San Luis news! ;-) Ob.

;-) @desjwhite. Neighbour=LRS. I wonder who will be first in the region to get a permit? I hope @Kiran has been brushing up on his Aussie accent, although aren't our vendors Australian? which might help! ;-) Ob.

I never realised the "fact" on page 4 of the most recent lithium bull. If this is true then it's possible Clay could blow brine out of the water on hydroxide production operating costs. One helluva of a closely guarded secret if so! ;-) "Imagine. Young Americans" (May 20, 2018) http://www.libull.com/2018-05-20-Imagine-Young-Americans.pdf ===[ Spodume has a 15% structural cost advantage over brine to produce lithium hydroxide ]=== BCN has never officially played their hand on hydroxide production capability or costs... I wonder if our BoD know more than they are letting on?

According to one of our neighbours "the new Mining Secretary for San Luis province has now been appointed" ;-)

As I said earlier, I'm under the impression that in practice the operational agreement will be written such that we don't have to contribute up front: our effective contribution to the CapEx will be deduced from our in year profit... But who knows what is being negotiated behind closed doors! ;-) But for now, our theoretical NPV8 based on the mining plan and various other assumptions, is what it is...

And the good news is if $16,000 is used rather than $11,000 your $53m approximately increases to: $53m * ($16,000 - $4,000) / ($11,000 - $4,000) = $90.9m Take away the CapEx results in $70m - all for that tiny bit of JV1 ;-) Ob.

Oh, but by this discounting measure the CapEx of stage 2 attributable to us would be: (from table 22.1.2) 7.2% * $161.3m / (1.08^3) + 7.2% * $209.5m / (1.08^4) = $9.2m + $11.1m = $20.3m And your $53m becomes $33m - which is still approximately $35m if you quint hard enough ;-)

I think I might have to stand corrected on this. Clearly the $142 is a typo and should be $1420. But in terms of how they have discounted, look to year 5: pre tax cash flow is: 187.5 and this becomes 127.6 NPV8. Which is 5 years worth of discounting: 187.5 / (1.08^5) = 127.6 So your $53m stands - which after CapEx becomes around $35m ;-)