Member Info for r7632

https://www.bacanoralithium.com/investor-relations/restricted-company-presentations/

So BCN has two other Companies

https://www.bacanoralithium.com/pdfs/q1mda_2015.pdf

Megalit 70% and Cadence 30%
Mexilit 70% and Cadence 30%

If it's 250 years resource at the stage 2 35tpa. That would be 125 years at 70tpa, 62.5 years at 150tpa.

What's the betting for 2030 output target? I think they'll be at 35tpa in 2028 stage 2 complete, and maybe 50tpa 4 years after that.

Raising funds for further development and paying off RK Mine financing will take time. But the larger it gets they will be able to fund expansion from income. That is 35tpa to 50tpa may be funded from operating income?

So completed Feasibility Study made it to 145p in 2018

Wonder when we get back to 68p and higher. I think it will take a little while for the extra 100 million shares to find a stable home and then see a climb in SP.

Am I delusional?

Should have stayed in Tesla rather than a pure Lithium play.

Thats 15.87% of 330,811,568 shares. Where Ganfeng take their extra 53 million shares there will be 390million shares in issue.
And M and G shareholding will be more like 13.4%

I think the 1.7billion of assets was 1.25billikn for Sonora and 458 million for Zinwald. Which is now 44% of Eros.

https://www.proactiveinvestors.co.uk/companies/news/940642/vsa-capital-market-movers---bacanora-lithium-940642.html

I notice that the article states a NPV of $910 Million of Sonora of which BCN has a 50% interest. Which I think would be 85p a share. But they have a price target of 120p a share.

Can anyone explain to me why the difference. Also why they have $910 Million instead of $1.25 Billion NPV shown in official BCN documents.

Not wishing to ramp up or down. Just wanting an explanation of the different NPV and Target price. I would be happy with 85p - even more so to see 120p.

https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/tesla-indicates-scope-of-lithium-demand-with-latest-supply-deal-analysts-say-61938787

Isn't capital gains 10% for Basic Rate Taxpayers and 20% for Higher Rate Taxpayers

Anyway I suggest splitting across years. Sell some before April 6th this years and on or after April 6th and you have £12,300 Capital Gains Tax free each year. Always use your ISA Allowance £20,000, Wife's ISA if you trust her, and Children ISA are now £9000 a year.

So I'll be selling and moving into ISA, Use up Capital Gains and protect any future gains.

Not surprised every BOD has left of died. I probably follow suit before the SFO close the case.

So if Gangfeng has recently paid £21.9mln for 27.5% of SLL - Presumably , without looking up the actual figures, their Total investment in SLL would be about £40Million.

Now BCN had about £40mln in cash plus another £40million - whatever from the Placement, how exactly do they apportion value and profits to each entity. In that more money is going into buying BCN shares than SLL shares.

So how could they have 50% of BCN NPV from owning 50% of SLL.

Confused and looking for an explanation

My understanding is Stage 1 and Stage two production going to Hanwa and Gangfeng. Hanwa most definitely far east. Gangfeng have customer deals worldwide so could go anywhere.

But the its a huge resource then can be linearly expanded so over time they could be producing for Mexico as well.

They have talked of 50k per annum but as there is at least 250 years of resource it could go higher but when that may be depends whether Elon Musks targets for 2025 for Tesla are met. The 2030 target are even higher.

observer842 I'm not sure that you can still attribute a NPV of £594,417,778 to BCN, and then you have to half it . Surely that is against at rules on clarity of financial statements. That is I think the Post tax NPV £594,417,778 takes into consideration Ganfeng owning 50% of SLL.

Clarification/ Justification from some published article would be nice to confirm.

I'd always assumed the VSA of 120p was a stepping stone to NPV achievable share price when in production. And that Target prices were normally 6 months, 12 month, 18 Month price targets. Although VSA don't seem to give time lines.

Having said that I'd be happy to see 120p after 5 or so years with this stock. I'll be keeping most of my holding till 2024 or later. Well into production I hope.

Assuming more shares are issued and Ganfeng go back to 29.99%. (I was working on they had 25.83% previously but that doc may be out of date)

There would about 390,225,326 share in issue and Post tax NPV £594,417,778 and an SP of 152.33p to realise that.

Any corrections?

Oh it can't be funding complete if you have to wait months for Ganfeng to decide whether to go to 29.99%.

If they do it's just extra money in the kitty. And they get more of the profits.

My thoughts are. It says "in addition" and "subject to approval of Ganfeng board"

So it can't be in the current placing. Because that placing is valid from Feb 8.

I need to adjust the to cater for new shares in issue - 59,413,758 news shares giving total of 390,225,326

Giving Ganfeng 117,009,786 or 29.99% of increased shares in issue

£26,736,191 I am I totally wrong again.

In addition to the Placing and Retail Offer, Ganfeng Lithium Co. Ltd. ("Ganfeng") has stated its intention to potentially exercise its pre-emptive right at the Placing Price and to increase its holding in the Company to up to a maximum of 29.99% in line with its original shareholding in 2019.

So if they had 25.83 Before - say 57,596,028 shares that is now 17.41% after placing and retail offer.

I am right to suggest they need another ~ 41,616,095 shares and £18,727,243 to get back to 29.9%

Do M&G have similar rights - I doubt as it would have been mentioned in the RNS

Thoughts and corrections welcome.

The RNS did state the cost had been Optimised at 407 million USD plus 37 million USD working capital 444 million total.

Then take away 28 million in cash from SSL net 416 million.

Anyway EPC did come in and funding round based off that. So to that means most of the unknowns and risks out of the way. Steady share price maybe?

Don't the board have share options to buy at certain price points with a time limit on when they have to be exercised or lapse.