Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
I’m presuming that the annual final report for 31st December 2022 have been audited . No mention of them being so in the RNS of 10th April 2024. Although a line item for audit expenses appears in the report.
The subsequent interim report does state it’s unaudited.
I email the company last week. They have kindly responded as below:
Thank you for your email. As Karim said in our last release, the Board and management are extremely disappointed by the results of our effort to attract financing into the Company and regret the impact this outcome will have on our many stakeholders.
Since the end of November 2023, the new management team has stabilized the business and undertook a comprehensive audit of the cost to complete and business plan to critically assess the current viability of the Project. The results of this audit demonstrated Araguaia’s project fundamentals as a robust 1st quartile operating cost asset, but also highlighted a significant increase of the cost to complete compared to previous estimates.
Despite an extensive engagement and global roadshow, the majority of investors cited the unfavourable nickel market environment as the reason for declining to pursue the opportunity further.
At this time, HZM is now considering alternative options for the Company’s subsidiaries in the interest of its secured creditors, which may include raising financing at the subsidiary level, a sale of the Project whilst in care and maintenance, the liquidation of the assets of the Project, or other options available under Brazilian laws. The Company does not believe that any of these options are likely to recover any value for the Company’s shareholders.
The Company will endeavour to keep the market updated with any developments in due course.
All the information we have at the moment is over 2.5 years old. Things have obviously changed a lot since then. I don’t know if or how much of that information can be carried forward. However, it’s all we have so I’ll get my calculator out and try to make some sense. Old figures NPV US$430 million, CAPEX US$39.7 million IRR 91%. Shares in issue 588 million. All this for the initial phase utilising 25% of the resource. So, because, I’ve been so hammered on HZM, I’m going to be really, really optimistic and pessimistic with my calculator and also round things to suite.
So optimistic NPV £400 million, CAPEX £30 million and 700 million shares (inclusive of government share). Debt equity ratio 70:30. £21 million debt £9 million equity. So after government agreement with a share price of 3p. That would mean 300 million new shares to be issued. Future valuation up to 40p a share!
Pessimistic NPV £300 million, CAPEX £60 million and 700 million shares. Debt equity ratio 50:50. £30 million debt £30 million equity. So after government agreement with a share price of 3p. That would mean one billion new shares to be issued. Future valuation up to 18p a share!
If that amount can be raised in this climate, well!
Don’t believe anything I say as I don’t have a clue.
I have definitely learnt my lessons on HZM.
Going forward with Armadale I sincerely hope we recoup some of our losses, however, I need to keep in mind recouping losses must not be a driver in the decisions made for ACP. I must treat this in isolation, but also, take into account the lessons learnt from HZM. This share would need to get to 10p for me to recover all HZM losses, so I’m not looking at that as a factor.
Unfortunately I can’t offset against capital gains as all my investments were in either my SiPP or ISA.
I have 3 million shares here @ 2.7p. (Not the 3.5 million I said yesterday, sorry I was getting carried away)
Armadale currently is a waiting game. A week, month or a year I haven’t a clue. To be honest it’s so long ago something substantial happened here I’ve forgotten all the details. Too focused on HZM. I’ll need to look at it all over again and work out what is the best here.
Lucky,
Thanks, I hope all is okay with yourself and you are able to take the loss on HZM.
At the height of my investments a couple of years ago I had a third in HZM a third here and a third in funds. I was also daft and took a bit out of funds and put it into HZM to average down.
I’m invested here to the tune of 3.5 million shares and I’m down here as well. I was treating HZM as my banker and this as the outsider. After HZM my confidence is shot and haven’t a clue if or when these may come good.
ThePublican777 has left the building. He left four long messages this morning mainly directed at Wasa with his usual messages to him. This was on the HZM board. The last thing the publican said was he was emailing the administration to get his account deleted. Hence all his messages deleted as well.
In case anyone missed it, ThePublican777 has left the building. He left four long messages this morning mainly directed at Wasa with his usual messages to him. The last thing the publican said was he was emailing the administration to get his account deleted. Hence all his messages deleted as well.
There are two elements to investment, the company and yourself. I admit that I’ve got my investment strategy totally wrong in the case of HZM and have learnt my lesson and will try not to make the same mistakes again. I did my own research and thought the company sound and wanted to invest in it. All good nothing wrong with that until 2nd October. The lessons I have learned are in a previous post.
However, I found it hard to believe the company had got it so wrong, even at 35%. I genuinely believed that the company would find a way to reduce costs and find funding. I was obviously so, so wrong! It was the sentiment that the company was portraying at the time of nothing to worry too much about, we’ll sort it out. Or I should really say it was my reading of the story which was heavily clouded by my sentiment.
It’s obvious in hindsight something had gone horribly wrong within the company. We will never know the truth what it was, we can only speculate. How it was handled by the company is open to debate. None of us knows anything.
Some more seasoned investors saw the risks, some like me, have to learn our lessons. I managed to turn a £90k profit in August to a £200k loss when I bailed out on Monday. I’ve kept 20k shares as a reminder to keep in mind the lessons learnt.
Please read my lessons learnt post.
Having been invested here for years I finally bailed out yesterday. I’ve lost £200k and in anybody’s view that’s a lot. I know now what I should have done. This has been a very expensive lesson. Since 2nd October I’ve analysed and reanalysed and basically went down the rabbit hole. There were plenty of people talking on each side saying it’ll go bust or everything okay and it be funded. Neither side of the argument could prove their case. I was in the camp of it being funded.
So what are the lessons I’ve learnt.
A) don’t get sentimental over a share. I truly believed in this project for various reasons but lost sight of what I was really here for, that to make a bit of money.
B) don’t overexpose yourself. Decide on what you can afford in one investment and don’t get sucked into investing more and more if it’s doing well.
C) if doing well slice. Always take profit when you can. Set profit goals. That can be 5% then sell the lot or wait until a level is reached to take out your capital.
D) the most important is on bad news always SELL. You can always buy back if things are turned around.
E) if for any reason you missed the opportunity to sell, don’t buy more, just sell. You can always buy back if things are turned around.
Pub, yes you were right, so I do apologise, but, please show a bit empathy to those who have lost. It doesn’t matter what has gone before as a lot of people will be hurting.
For those who are thinking of buying DON’T.
This is now a trader’s share only.
After all this I must first offer apologies to Pub and Cont for calling this correct, we should have listened. Please don’t say we told you so.
I made my decision to hold in haste and now realise I should have absolutely thought more and exited.
There will be various amounts of losses which no one is happy to take.
I’m upset for all whatever your circumstances.
The good news is the lights are on a that they have actually produced enough gold to pay of the gold loan.
The director's subscription will come after accounts published and the directors subscription I’d later today. My take is that they will give the exchange the accounts first thing for scrutiny. Once verified an account RNS followed by a suspension related RNS followed by the Director RNS.
Cheese,
There has already been plenty of discussion on why this will remain a PLC. You can read back a on this chat for several months, but to save you a little effort here is the shortest of summaries.
La Mancha the largest shareholder does not deal in private companies. They will not sell their stack here cheaply.