Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
Morning Bob. It would be good to see the list you are working from that leads you to believe that there will be 'a couple dozen other miners' with mines due to start producing in the next couple of years. That was not my impression. Are they all mines which are fully funded to production with offtake agreements in place for all of their production as is the case with Bacanora? Again, probably worth passing your research on to Ganfeng so they can re-evaluate their intention to buy the whole company.
It's amazing that one of the largest lithium producers in the world has been working closely with Bacanora for many months and now wants to buy Bacanora outright, isn't it? Perhaps Ganfeng have done less research into the viability of the project than you Bob? You should send some of your research through to them to help stop them making a huge mistake.
Thanks John, I missed that.
The email address is on the contact page of the Bacanora website - it is info@bacanoralithium.com
I have also just emailed Bacanora to register my disgust about the offer. I own about 100,000 shares through an ISA and SIPP and I think the offer from Ganfeng is ridiculously low. I share others lack of understanding of why the directors are recommending it. The release does specifically mention Independent Directors. From a quick google:
"An independent director is the member of Board who does not own any shares in the company and does not have any monetary relationship with the company except his remuneration"
So that does not include Secker and a lot of the other board members?
Can someone explain all the sells at the moment? Surely if these are from the placing then they were bought at 45p so why sell now? I could understand if the share price had gone up 20%
My understanding is that ZNWD is a much smaller deposit than EMH, lower quality of materials and quite a long way behind EMH. EMH is also low cost due to the tin that will be mined as a by-product - I am not sure if the ZNWD deposit is the same? Certainly ZNWD and EMH are not just too identical deposits on different sides of the border. I think that the EU will require all the lithium it can get to meet it's targets so I am not suggesting that ZNWD is worthless, but it is nowhere near the scale of EMH
I have shares in both, so it is not too bad! But there seem to have been a lot more buys than sells for BCN over the last few days, so I would have thought we should see an upturn soon.
As I understand it, Ganfeng will now own 50% of SLL - ie the Sonora resource itself. That means that they will be liable for 50% of the project financing costs - Bacanora will need to find $210m and Ganfeng will need to find $210m if the costs remain as were previously announced for stage 1.
This means that Bacanora will own less of the asset itself, but will now own 50% of something that is likely to be funded and go to production.
With the existing financing, and cash in the bank, Bacanora basically already have the money they need so there should not need to be any more major dilution - some earlier posts on this board go through these numbers.
So, there will not be any new shares issued in BCN as part of Ganfeng increasing their holding in SLL.
The fact that Ganfeng are increasing their holding to me suggests that there will be more announcements in the near future around financing and timescales that should significantly increase the share price.
In terms of the generation capacity, National Grid don't seem at all concerned about this - https://www.nationalgrid.com/stories/journey-to-net-zero/5-myths-about-electric-vehicles-busted.
Charging in cities needs sorting out and is more tricky, but I don't believe it can't be resolved within 10 years.
I have just bought a Renault Zoe which will comfortably do 170-180 miles even on motorways and more at slower speeds. With fast charging now, it is quite usable for long distances. Within 10 years, range and charging speed will improve significantly and I really don't think this will be an issue.
From what I have read Sodium-ion batteries are nowhere near being ready for use in EVs. There are weight issues with Sodium-ion which is a critical issue for EV batteries. Maybe in 10 years and maybe for other applications, but right now for EV batteries I can't see an alternative to Lithium
Just seen that Seat are releasing the Mii EV in the UK for less than £20k. I have been looking at getting an EV, but everything (Leaf, Zoe, Peugeot and especially Tesla) is over £25k for a new car, unless you lease the battery, whereas I can get a new petrol small car for £15k or less. This looks to me like the start of EV pricing becoming seriously competitive. We have to remember that BCN have done most of the work here - major investors, offtakes, pilot plant producing battery grade Lithium Carbonate and now Ganfeng involved. When demand for Lithium really takes off, BCN should be ready or nearly ready!
Hi Maverick, Personally I am feeling very positive that everything will come good eventually, but I haven't got a clue when that is actually going to be. Everything is slowly getting sorted out, but is taking a long time. I think that there should be a significant increase in the share price once there is a clear path to production. That means getting the final approval from the Chinese for Ganfeng's involvement (that should help the share price a bit maybe?). But, I think the real increase in share price will start to happen once we know proper costs and have a realistic timeline for getting to production. That will happen (in my view) once Ganfeng have done their review which I think was going to take about 6 months(?) and we are clearer on costs and what additional fund raising is required.
So, I think the share price will be many multiples of what it is now. I think this will happen at some point in the future which could be 6 months, a year, 2 years or maybe more! Personally I am just leaving a fair bit of money (around 70k shares) in this with no intention of selling anything until the share price is at least £1 and preferably considerably more. I still just believe in the basic principle that EVs and Lithium batteries generally are going to be absolutely huge and that Sonora is a vast, low cost lithium resource. Surely that will eventually result in Bacanora being a hugely valuable company?
Yes, the presentation was good. I think at the moment, Peter Secker does not actually know how much more financing is needed. Ganfeng seem to think they can reduce the costs, so the actual outstanding amount is unknown.
BCN looks much more likely to me. Far further along, a partnership with Ganfeng, off-takes in place. No obvious problems with permits etc. EMH looks great on paper but is a long way behind BCN and seems to have stalled. I do still own EMH, but have far more in BCN and I can't understand why BCN is so cheap at the moment. Not everything is guaranteed, but to me it now seems probable that BCN will make it into production and if it does, will be worth many times what it is worth now.
We will see! Long term I am convinced this is a good price. Certainly a long way under the 80p or so I bought a lot of my shares at.
Agreed. I thought I was not going to put any more money into BCN as I already a large proportion of my ISA in here, but I could not resist another top up at these prices.