Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
A tie up with LKAB has oft been mooted and may be part of some behind the scenes discussion with Thor. Thinking aloud, could Kallak be spun off as a separate company listed in Sweden and/or London, leaving BEM with its other projects. BEM shares are largely in private hands which has both positive and negative consequences. At least we don't have a large professional investor that can manipulate the SP at a whim. I remain confident we will achieve the concession, in some form or other, and there will be a decent re-rate as a result. What fun we do have speculating.
Happy to see our quirky Swedish investor colleagues wagging away enthusiastically today.
If you did, whatever the time is here he would tell you the time was so much better in the US.
Pocko-Swedes have 75% 0f the shares so not sure if they are dog or tail! I think their pricing system is based more on bid and offer rather than market makers setting a price. Anyway Sweden slightly blue now, hopefully we will follow suit.
AIM. Sounds like it is or could be used in desalination processes. If so, valuable as we see more drought due to climate change. Thanks for your technical input.
JTG. I would be cautious about putting all our eggs into the graphite basket. Iron ore has a predictable future but graphite is currently heavily linked to car battery technology. I would prefer to see the company run both, if it can.
That's a less easy answer as the price depends greatly on the flake grade, oddly the larger the flake the better. Been on the rise since 2019 and market view is that prices will increase dramatically between now and 2025 due to battery demand. Battery technology is however advancing rapidly as are alternatives to electric, which could affect demand. Car manufacturers are heavily investing in electric cars so alternative power sources seem unlikely to affect demand in the medium term. On balance the demand profile for graphite should be upward, especially for the right size flake which I recall BEM has said we have. If anyone has better info happy to be corrected or augmented.
Suzy. Ore prices are currently low but forecast to rise through 2022 into 2023, $200/ton later this year which could add to any positive decision on Kallak.
Gambier. I would presume to say it is a valuation but it is an opinion. Kallak alone has an inferred resource of 250mt high grade ore (75% iron). Current ore prices are circa £100/ton for 63% ore. This would give a gross value estimate of £25b so an mcap of £500m represents about 2% of GV which I don't think is over optimistic. Like many here I am just a long term holder who hopes my patience will be rewarded with the concession.
Held this share since 2009! A lot of dilution since then so hard to reconcile the past sps with where we might get to now if we get the news we all want. Even then it will depend on how the consent is couched, but an mcap of £500m shouldn't be unrealistic.
Agreed Aug. Kallak represents some of the best grade ore in the world. I suspect that some of the countries in that list don't also have the best employment or environmental credentials.
As you will see from the table below Sweden is a relatively modest iron ore producer in international terms (1,000 metric tons units). This is reflected in LKAB's small asset value compared with the big producing companies-it wouldn't make the top 50.
1 China 1,380,000
2 Australia 824,000
3 Brazil 428,000
4 India 129,000
5 Russia 112,000
6 Ukraine 68,000
7 South Africa 80,000
8 United States 43,000
9 Canada 39,000
10 Sweden 37,000
I think they are OK for money, as reported in Setp21 they had £20m in cash and receivables.
That phrase usually means one party is being held over a barrel. ie negotiate or get nothing. Not sure what extra BEM can offer to placate the Sami so I would assume the pressure is on the Sami.
FF23. True, I was gently mocking but they do have many more Public Holidays and Observations than we do. Today is the last observance day of Christmas, bye bye decorations. Interesting to see what happens to the SP over there tomorrow.
Lets hope we have at least one wise man! After a hectic Christmas our Swedish friends need another day and a half off..
Thanks Zahod-have a cosmic New Year. There appears to be a substantial reality gap between the rhetoric and the current performance on Nas for both shares. Uncertainty looms large and the reality is that value has evaporated into space. Lets hope that GC can sort out his improbability drive and get us all to where we want to be.
Hooray, mine also, but somewhat under water. Need a very good recovery now.
Still zero on ii. I can't recall a supposedly sophisticated BoD making such a horrendous mess of things. TLSA and ACMSY being salami sliced daily in the US. TLSA now below 90c.
Merry Christmas one and all. So long have many of us been posting on this board I feel I am beginning to get to know some of you. Lets hope we can last a little bit longer to see this company fulfill its potential. Rick