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It seems to me that we are close and things are on track.
The CEO has just jumped the gun hence the late RNS.
We might not be producing the full 50 million but the main thing is it looks like the test works.
I wouldn’t be surprised to see the government announce it in today’s update.
This reeks of a sale to me.
Oh you want to buy StemPrinter? Well there it is all wrapped and packaged for you. We'll start the bidding at say $2 or 3 billion
No quite the rise we were all hoping for, but a rise none the less, and remember we are only one hour in to trading.
It's very rare for a share price to shoot up 600% like some were hoping but it's a strong buy and hold for me here. The price will continue to increase over the coming months as we get closer to the go live date in 2021.
Also any rumours of a takeover will see the price sky rocket.
I think the problem is there are a lot of companies rising in anticipation of COVID-19 solutions.
If another company becomes more advanced, or secures contracts then it is detrimental to the other companies and they will tank.
No news plus no apparently not being involved in the Isle of Wight app means this has taken a severe hit.
If they can provide positive updates then it will rise again.
Same will happen with a lot of companies, unless they can provide something solid as to their involvement with COVID-19 solutions and contracts to back it up
I wouldn’t be too concerned with only a small rise on the back of this great RNS.
We’ve seen in the past this share slowly rise and rise over a period of time and I can see the same thing happening here.
Rather than it exploding, then retracing.....
I’d imagine we’ll be pushing 30p by the end of next week, maybe sooner
Saying that when that FDA approval comes we could see a nice jump
That sounds promising obs, I was just trying to find some numbers for each area.
I found BCN rns on 23/11/15 which implied Lv had 1.3 millions tonnes of lce, that’ll be enough to keep them going for a while won’t it? Even if they do ramp up production.
There are probably more up to date figures but I was just flicking through.
My worry is it could be many years, if ever, before we get real value
I hope you’re right bannor, and am by no means a mining expert so haven’t attempted to look at what grades would be mined in what order.
My thinking was just that if you own 100% of something it may be better to mine that even if the 70% bit has higher grades. Especially if self financed and no pressure from lenders.
I’m also struggling to see how we can sell unless it’s to BCN or they agree to sell the whole JV areas to someone else.
I still remain hopefully that they will come to fruitition but am less confident now
Obs - you mention you are still bullish on the jvs.
My concern is that once BCN get the project off the ground they can grow organically themselves. So say in year 5 once they are producing 35k (minimum) and starting to get a decent cash flow, what’s to stop them increasing production from Lv.
They may have no need to mine the jvs, and economically it may be better for them to mine lower grades but 100% owned.
KM confirmed in the webinar that we pretty much had no say in the jvs and were at the mercy of BCN, and given how they have pushed mining our bit until further down the line, what’s to stop them say well that’s your lot? We’ll just focus on our own areas now.
For me question 1 is the most important as the JVs are the most lucrative to us and what most people are invested for.
If it’s a case of it’s out of of hands and we have to wait 7-10 years to realise any value then that will be very disappointing!
Here’s my questions again:
1) Given that Cadence's JVs in Sonora and Yangibana have effectively be frozen out of the mining plans, how to Cadence plan to get value from these and what have they been doing to achieve this?
Or is it a case of it's out of Cadence's hands and all they can do is hope they are included if the mining plans are expanded?
2) Cadence have previously mentioned that they want to achieve 'shareholder value' but given that the share price has sunk lower and lower over the past few years, how do the board feel they have performed?
3) The board have suggested that the share price has dropped due to the market no longer viewing Cadence as a potential mining company.
Given that this view was probably due to Cadence doing things like the scoping study, along with the failed conditional supply agreement with Tesla - therefore do the board accept some responsibility for the market no longer viewing us as potential mining company, and therefore the subsequent drop in share price.
4) How confident are the board that they will meet the various share price conditions (by Feb 19) that will trigger their share options?
And what do they feel needs to be done to achieve these share prices.
5) How is Cadence planning to fund the new ventures - San Luis and Zulu - along with repaying the CLN loan.
I've emailed to get them to ask these questions:
1) Given that Cadence's JVs in Sonora and Yangibana have effectively be frozen out of the mining plans, how to Cadence plan to get value from these and what have they been doing to achieve this?
Or is it a case of it's out of Cadence's hands and all they can do is hope they are included if the mining plans are expanded?
2) Cadence have previously mentioned that they want to achieve 'shareholder value' but given that the share price has sunk lower and lower over the past few years, how do the board feel they have performed?
3) The board have suggested that the share price has dropped due to the market no longer viewing Cadence as a potential mining company.
Given that this view was probably due to Cadence doing things like the scoping study, along with the failed conditional supply agreement with Tesla - therefore do the board accept some responsibility for the market no longer viewing us as potential mining company, and therefore the subsequent drop in share price.
4) How confident are the board that they will meet the various share price conditions (by Feb 19) that will trigger their share options?
And what do they feel needs to be done to achieve these share prices.
5) How is Cadence planning to fund the new ventures - San Luis and Zulu - along with repaying the CLN loan.
What the board have done is look at shorter term products which will bring revenue quicker. This is a good thing in my opinion as we need to develop a constant stream of revenue from somewhere.
Obviously though this does pose the questioning of financing and possible dilution but it may be a necessary evil
Rosy - at the moment I'd say no, due to the fact we have been frozen out (for now) of our main assests......and that's how the market seems to view it.
However things can change, the assests are still there and good ones at that.
A sale of the jvs could happen at any time.
What can the board do? The way it seems they are at the mercy of BCN/HAS at the moment.
Can they strike a deal like the Tesla one which seemed to involve our jvs and us working with BCN to get their project going, although BCN perhaps not as enthusiastic as us. Would BCN even go for that now that their attention is mainly on getting stage 1 off the ground.
Can they push for a sale of our jv areas to someone like tesla or ford? And will they be able to get a decent price?
Will they have another go at a merger with BCN?
If you look at my earlier postings you'll see my thoughts on what these projects could be worth to us..
Obviously I'm disappointed with how things have turned out (so far) but the potential is still there, albeit maybe over a longer time frame now.
I guess it depends how actively the board are pursuing different scenarios regarding our jvs. One RNS regarding yangibana said they were looking into ways to get value from this.......however no word since.......
The issue is that the market previously saw us as potentially a mining company, now with us being frozen out of the Yangibana mine plan and pushed back to year 7(?) in the Sonora mine plan, the SP has dropped to this level.
So, we are left with the 30% JVs, which we are not going to see come to fruition for many years (according to the current state of play).
We also have stakes in various companies, however these are likely to be diluted along the way. With BCN (and others at a later date) the hope would be that the SP would increase on dilution as it would be to fund the mine and unlock a huge amount of value in the project, not just to keep the lights on or go on directors salaries.
So, what needs to happen:
Sale of our 30% JVs - can't really see this happening as the buyer would be in the same boat as us, unless they have deep pockets and can come to some sort of deal to help finance in return for the JV areas being mined.
Sale of the whole JV area - a possibility, would solve our issues and remove us from the projects which BCN/HAS may be pleased with and also provide them with funds to complete the construction on their areas.
Increase in demand - very likely, which could in turn lead to our JV areas being mined sooner. How soon this would be though as BCN are currently facing difficulty in their attempts to finance the 17,500 stage 1 so may want to get that off the ground before thinking about expansion.
Takeover of BCN - would not really help us as we would still be in the same position with our JVs, and could even be frozen out further.
It would potentially realise some decent returns on our equity stake however.
Other projects - San Luis, Zulu - will provide us with more split projects/JVs (although San Luis possibly 100% owned) - currently delays and political uncertainty affecting these. Also question marks over the funding of these and possible dilution.
Other equity stakes - still early days with a lot of these, so value should increase, it depends how long we want to stick with them for as dilution will play a part with these once they come to mine.
The answer to get the SP higher is show how we are going to get value from the current projects or manage to create near term revenues (eg from San Luis/Zulu).
Whether we can do this or not, well, it's over to the BOD.
Yes they could.....although I can’t see why they’d need to at the moment as they have a mine plan based on their 100% areas.
Unless they are planning to expand the plan or think they can get our jvs on the cheap, or we have offered them to HAS at a reasonable price, I can’t see much sense in them making an offer right now.
Maybe we’re selling to crash the BCN share price so they can’t get the placing done?
Then we say mine on our jvs and we’ll help fund?
How we fund them I have no idea, but I assume there must have been some plan in place for us to fund if the merger had gone through.