Member Info for observer842

@FrankieH. It's all about risk to return and the value curve. We are paying our BoD to grow our investments. If that means selling say �1m of an existing investment which they might forecast to triple in price to say �3m over a particular period with a 67% probability of success and 33% probability of complete failure, to fund another project which they estimate might say grow by 10 times, but only with a 33% probability of success (67% of complete failure) over that same period, then I'd say that is a good investment choice. Why? Imagine that the same opportunity came up 3 times, and they sold �1m each in 3 separate companies, each which had a 67% chance of growing to �3m and a 33% chance of going bust, to fund 3 ventures, each with a 33% a chance to grow to �10m, and a 67% chance of going bust - you can see from the convenient probabilities I chose that you might expect 1 of the existing companies to go bust, but 2 of the new ones. Which would mean if you left the original �3m alone it would have grown to �6m (2 x �3), but had you invested it in the 3 new ventures the 3m would have grown to �10m (1 x �10m). Does that make sense? By the way, all the numbers above are completely hypothetical and don't relate to our investments in any way! ;-) Ob.

Anyone know if KDNC voted at the BCN AGM? I would have thought we would have, and if so it's easy to deduce we voted in favour of both the re-domicile and the resolution to issue up to 365 million new shares in the Company. On the surface it appears like we are singing from the same hymn-sheet as the rest of the shareholders, but of course who knows what is going on beneath the murky waters of corporate brinkmanship...

@Bannor & @Frankie. I think you both raise valid points about San Luis - so clearly some shareholders remain unconvinced by this plan. I suggest that when (not if!) the permits are granted that we get @Kiran to explain again why it is a good idea in one of the webcasts. I personally think it is a great plan - perhaps I'll have a go at explaining why after the permits are granted.

I see where you are coming from - but I think either me or you has a misunderstanding. My understanding is that the �1.1M in earn in fees *is* the exploration and drilling costs. I wondered why you are so down on this plan. The �1.1M is earmarked already, and if we come up with the goods I'll expect the addition to the share price will be multiples of this. We've got 6 areas. I'm quite hopeful / confident we'll come up with something we can sell from at least one of them. ;-)

I do understand your concerns @Bannor - really I do: but I think cash flow to KDNC is sorely needed, nay, paramount at this point - at least expectations of cash flow within a few years, not several, and that is where San Luis comes in.

Indeed @Bannor ;-) But assuming you mean 0.75p @paddwah26 then according to slide 5 of the March corporate presentation KDNC's *diluted* equity position of BCN's Sonora project and EMH's Cinovec project (at current planned mining rates) is worth circa $100m. We have several other listed assets, along with unlisted assets also. e.g. the current plan has around $30m from Sonora to us from our 30% JV area. So assuming Sonora and Cinovec make it to production and our holding is suitably diluted - that's a market cap contribution of $130m which is around �92m: which translates to �92m/7,851,440,338 = 1.17p But that's not why I'm here - I'm here on the hope, neigh the expectation that our 30% Sonora JV's will be mined significantly sooner than the market is expecting - then we are talking! ;-) And of course San Luis is to get that cash flowing ASAP so we don't go under (IMHO). Yangibana getting sold for double digits would also help on that front! ;-) Ob.

By the way @Bannor: you know it's April now right? ;-)

I believe they are back to using end of the year numbers. I was referring to the footer of each page: "CORPORATE PRESENTATION FEBRUARY 2018" when the front page and name of the pdf clearly indicates it is March. It's got some exciting figures in for those who haven't seen them before. Presumably it will be presented this week? In terms of San Luis - so long as no permits are being issued in the region then I think we are fine. i.e. we are in the same boat as everyone else: waiting on the local mining office to pull their finger out. Of course something a little more nefarious could be at play... I wonder how many have their finger on the buy trigger waiting on the announcement for them to be granted? I know my breath is being held! ;-)

and detail @Bannor... I've just been looking at the March presentation which has February at the bottom of almost every page... http://www.cadenceminerals.com/wp-content/uploads/2018/03/Corporate-Presentation-KDNC-March-2018.pdf As long as they are keeping an eye on what really matters eh!? ;-)

As an addendum from this post on Saturday and a check on my understanding of auctions, can anyone confirm that whoever triggered the auction at 2pm and 4:35pm on Friday pulled out as no uncrossing trades (UT) were posted for Friday? Whereas today, for BCN, there was a UT trade @11:00:01 for 1,499 shares @100.00p which I understand to represent the 11am auction volume and price.

Probably best you don't follow @Jimb's link if you want to be able to sleep at night @FrankieH! ;-)

I'd say we are at a stage now where we don't actually need that many people - most of the hard work is likely over. Could be that Paul asks for help from Nick and Paddy when 2 or 3 people are required to shift a bit of kit. LoL! It's quite a big space for 1 person to be knocking around in on their own all day... ;-) Here is the google street view link: https://goo.gl/maps/3XQh2Sg1XaP2 https://www.google.co.uk/maps/@53.3335244,-1.3373937,3a,15y,81.54h,86.7t/data=!3m6!1e1!3m4!1shbqKt80GyXQp1urlXzQBZg!2e0!7i13312!8i6656

@onenadonly1: "Looks like a weak buy to me BA looking at your Odds!!" I was thinking the same! 50:50 odds on good news or complete failure. Complete failure means this share is practically worthless, whereas good news, e.g. good funding news, will very likely 10x bag this share (and then some!). I'd say on that risk to return ratio, it's even a strong buy! But I'm not marking my opinion as such though - I need to see hard evidence for that. There is plenty of circumstantial evidence to merit a weak buy at this stage though, and perhaps a straight Buy if you don't hold any shares at all... ;-) One way or another, news is definitely imminent! Ob.

@Frankie. Take a read of: "SETSqx (Stock Exchange Electronic Trading Service � quotes and crosses)" https://www.lseg.com/areas-expertise/our-markets/london-stock-exchange/equities-markets/trading-services/domestic-trading-services/setsqx === The auction uncrossings are scheduled to take place at 8am, 9am, 11am, 2pm and 4:35pm. === If you want to know what an auction is and why they are valued by the market, take a watch of the short video: "SETS INTRA-DAY AUCTION" http://www.londonstockexchange.com/products-and-services/trading-services/sets/sets-intraday-auction.htm === London Stock Exchange announces the introduction of the new scheduled daily SETS Intra-day auction for equities on Monday 21 March 2016. The new Intra-day auction is a Midday price forming auction mechanism for trading larger sized orders. === and the 30min talk: "UNDERSTANDING AUCTIONS" (September 2015) https://www.lseg.com/markets-products-and-services/our-markets/london-stock-exchange/equities-markets/trading-services/trading-services-video-resources/understanding-auctions === Brian Schwieger, Head of Equities at LSEG, explains 'Auctions' at The Stock Market Show event in September 2015 === but noting that when 12pm is mentioned, it's 9am, 11am and 2pm for KDNC. Even more information is available at: http://www.londonstockexchange.com/products-and-services/trading-services/trading-services.htm And by now you should be asking what % threshold was breached? Well from one of our RNS's: === The applicable percentage is set by reference to a security's Millennium Exchange sector. This is set out in the Sector Breakdown tab of the Parameters document at www.londonstockexchange.com/tradingservices === And from row 171, column AR of that tab: http://www.londonstockexchange.com/products-and-services/technical-library/millennium-exchange-technical-specifications/mitteparameters.xls === Closing & Scheduled Level 1 Only auction Price Monitoring Parameter %: 10 === i.e. both at the 2pm intra-day auction and at the 4:35pm closing auction the initial automatically calculated auction price which would have maximised the volume would have been greater than or less than 10% of the last trade before the auction call period started. The first RNS is designed to alert others that the volume was there should they wish to participate and allow existing participants to alter their positions. Perhaps some came to the market at that point, perhaps not. Regardless at the end of that additional 5 minutes, the threshold would still have been breached had the uncrossing gone ahead, so another 5 minute extension was granted. After that the auction price which maximised volume would have gone ahead regardless of whether the 10% would have been breached or not. At least that is my understanding! ;-) Ob

Perhaps we are technically exempt from reporting the 1% threshold crossing between 5 and 10% holding?

Indeed @tomcat - they need to keep the momentum going and couldn't wait forever for NextView - I wonder if they have someone else lined up to take their place? I don't understand how we could have dropped below 9% without having to notify the market. Bit of a head scratcher that. Any ideas? Personally I suspect we still own over 9%, especially since our web page thinks we own 7%. http://www.cadenceminerals.com/projects/sonora-lithium-project/ @Kiran - explain yourself. lol ;-)

@Ob "Surely we couldn't have remunerated Paul, Nick and Paddy �141,000 between them in the period June 2016 - June 2017!?: surely they are on a retainer with the majority of that �141,000 going to the engineering team?" I take that back. Paul Booker is part of the engineering team, and may lead it assuming it isn't him on his ownsome! ;-) https://www.inspirit-energy.com/who-we-are/the-board === Paul Booker (Design & Development Director) Paul has a wealth of design, engineering and management experience and has worked in many areas of engineering. He is responsible for designing components, setting and evaluating internal testing and the associated analysis as well as designing and implementing internal control systems. He manages the engineering aspects of the business and has a Degree in Mechanical Engineering from Sheffield University. === For some reason I had him down as a web developer... apologies Paul if you are reading! Though I'm still not sure what Nick and Paddy have been doing over that period to justify any salary... Perhaps they'll surprise us in the coming days? ;-) Ob.

@MonRev - take a look at page 28 of the 2017 accounts: https://www.inspirit-energy.com/investors/financial-information === In addition to the above a total of �141,000 (2016: �182,000) wages and salaries for employees have been included in Development costs. === which tallies with the stated average number of 6 employees (which include the 3 executive directors - one of which has since stepped down). i.e. I'd say we have the equivalent of 3 employees earning around 40-50k each. Of course in practice we might have 6 part time employees earning half that. Who knows! This might be of interest: "Board Change" (2 June 2017) https://www.inspirit-energy.com/investors/rns-news-detail?id=rm0ekvx === The Company announces that Neil Luke, Chief Operating Officer, has stepped down from the Board of Inspirit Energy Holdings plc due to his planned retirement. In the interim period, Paul Booker, Design and Development Director of Inspirit Limited, Inspirit Energy Holdings plc's 100% owned operating Company, supported by Nick Stevens, Marketing Director and Paddy Thompson, Sales Director, will oversee day to day activities until a suitable candidate is appointed. === So we have John Gunn, Paul Booker, Nick Stevens and Paddy Thompson, and not forgetting the Finance Director Nilesh Jagatia. In fact they are all listed here: https://www.inspirit-energy.com/who-we-are/the-board Surely we couldn't have remunerated Paul, Nick and Paddy �141,000 between them in the period June 2016 - June 2017!?: surely they are on a retainer with the majority of that �141,000 going to the engineering team? Wishful thinking on my behalf? Regardless, just what did they do that year to justify their continued employment? Perhaps more is going on behind the scenes than I am giving them credit for? Are we gearing up to something big? New financial year tomorrow ;-) Ob.

Now all we need do is get some cash flowing (ala San Luis) and wait for that lithium demand spike up the S curve to kick in and we are laughing...

Thanks for the clarification. That 7km on the diagram is completely misleading. That distance is around 50km. So your 160km is the distance if the three (and a bit) strike lines were straightened and laid end to end. The vast majority in our 30% JV's. Nice! ;-)