Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
DVH I assume he meant the Zimbabwe lithium thing which was announced shortly after?
Pecten, while most wouldn't disagree with what you're saying BUT to say 'BOD is loss-making' is meaningless unless seen in context - it's an explorer/developer so of course it has a cash burn, but it is kept to a bare minimum partly because it has bare minimum overheads with no fat-cat salaries or Director/management fees (unlike many others on AIM), and partly because it's managed well. In doing so it has slowly (very slowly I agree!) amassed a series of resources and licences (of which TR is just one) in a diamond sector where a number of the bigger existing mines are now reaching the end of their economic life (eg Argyll which closed in 2020 and Diavik in a couple of years, and that's just RTZ) which means that the bigger players are seeking new resources. If the latest drill confirms that TR is indeed a world-class deposit ready to be mined with permits and licences in place and general infrastructure close by, it's going to look very attractive to bigger acquisitive players especially in a booming diamond market and irrespective of the short-medium term macroeconomic outlook. As for raising cash for mining it itself, that would depend on the size of the deposit (which this latest drill is clearly key in getting it to a size which maximizes the economics of it and the overall mine plan, and the $ amounts involved to mine it - James has previously said it is likely to be a matter of a few million, not tens or hundreds, to get it going. Not necessarily easy I grant you, but certainly not unsurmountable if the story's good enough.
DVH I believe they are doing the remaing drilling over the summer (ie now) so could be some results before too long. I think timing might also depend on where Group 11 prioritise the drilling locations - ie the 3 remaining JV drill locations or their own adjacent locations. Either way it can't be long now!
Drill angle is significant.
At an Angle = looking for/checking thickness
Straight down = checking the depth
Need I say more…
Pecten - yes perhaps true re Covid/Botswana - possibly also explains the seeming lack of result from the Burgundy side of things (which to me is disappointing tbh).
Re KX36/TR I tend to think the opposite - focus on TR for now, get it a proper valuation, decide whether to keep it and mine it, or sell it (I don't mind either way personally but I think a royalty deal would be a short-term wasteful solution), then use the resources from it to head back to Botswana and get moving on KX, Sunland (and now Maibwe). Maybe Ghaghoo too (I just whispered that though!).
Hi Pecten
Future Minerals is a bunch of local interests. Not entirely sure of their situation tbh but any weakness/inability to stand its corner presumably brings opportunity for BOD.
KX36 - it's a tricky one, have discussed with James previously, personally I feel that royalty deals, although quicker, tend to give most of the upside to a third party, I'd prefer they stuck with either tarting it up and selling it on, or having the balls to raise the financial resources to do it alone/with a JV partner of some sort (Burgundy...?). Same goes for Thorny River/Marsfontein. I think also with KX36 it's in the middle of nowhere, will need a fair bit of mobilisation, most of the Company's efforts are currently on TR/Mars - hopefully rightly!
Looks like the Maibwe logjam sorted at last. It's taken 5 years which a few on here will be well aware!
But if the Gaborone rumours are true about the real size and quality of the resource (especially the one Teeling quietly referred to in the RNS) prove true it will be a monster in the making.
Whether Future Minerals have the financial and operational capacity to maintain the other 50% will be interesting to see, therein perhaps another opportunity may arise, who knows.
FCA…? I just fell over laughing. Truly hilarious!
Keep it up lad - you’re getting better and better!
Echo, Ziqarat, I can highly recommend a trip to Pretoria/Jo’burg (and a certain area North of That…!) followed by a 2 day trip back down to Cape Town on the Blue Train which stops so passengers can visit the Kimberly Mine en route. Not exactly cheap but a wonderful experience.
Echo I think your’analysis’ is about right ref drilling and subsequently having a better idea of the resource and the scale of its commercial value. In terms of value to shareholders and timescale to realise that value will depend on what they decide to do with the resource - at one extreme they could raise some cash and develop it themselves (probably not that much needed to do it by James’s owm admission), or at the other extreme sell on ‘as-is’ to a bigger player, while somewhere in the middle lies a royalty deal. Persomally I’d prefer either of the extremes, one takes longer and carries higher risk and would likely yield better returns long term, the other quick and by its nature somewhat discounted, but either route will return multiples of today’s share price.
It isn’t really ‘news’ at all, JT has signalled his intent to back off for a while now.
The ‘news’ will be who replaces him. A Bolivian perhaps…?
I think there’s an important distinction between ‘running out of cash’ (doubtful) and ‘need for cash for specific projects’ eg Zimbabwe (maybe).
Mike it is perroverrde (with four ‘r’s) I couldn’t get into my old account for some reason.
I’m interested - will re-load Telegram later as it hasn’t transferred to a new phone for some reason
Exactly!
Pumped for a placing for a second drill, or to pay for doing something meaningful in Bolivia perhaps?
Bring it on!
DVH can't disagree with any of that. Stonepark is clearly more pertinent at present than any of the Mine River or Inishowen stuff (however interesting - and late! - they may be).
Seeing the repeated Twitter posts (by whom I wonder - not Jim or Johnno surely?) just starts to make me nervous that they want the share price up to raise funds! (though I doubt that's the case unless for something specific eg Zimbabwe).
Mike, agree. I have always been, and remain, a bit sceptical on Ghana (long experience of investing in African projects!) but if it happens it'll be brilliant of course. Bolivia probably more imminent. Australia will probably take a bit longer, sounds like it'll need a fair amount of forward planning (and financing), but at least he seems to be working with pro-active partners so hopefully months not years till the next 'go'.
Hear hear Mike.
Like you I have been here a long time (and like you been a long time in the markets), have my own opinion, done my own research which I'm always happy to share and while equally always happy to learn from others I certainly don't need 'schooling' of that sort. I just ignore it and recommend others to do likewise.
I remain happy to be invested in a BoD which isn't scared to travel the globe and take calculated (big lol) risks on shareholders' behalf. Bring on Bolivia, Ghana and hopefully lots more fun to be had in Australia!
Mcap £2.5m or so, very little free float as so much stock in 162 Group and ‘friendly LTH’ hands. Under the radar right now.
I personally thing you are spot on there. It would be the obvious thing to do given his comments recently on this and the other 162 Group companies that their ambitions are mainly as explorers not developers.