The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Excellent for US based Lithium miners
https://www.bloomberg.com/news/articles/2022-03-30/biden-poised-to-invoke-cold-war-powers-to-boost-battery-metals
Bought more
Nice RNS
I wasn’t expecting it to be that much of an increase.
Points out the reasons the US is behind and a strong case for US domestic Lithium
https://video.foxbusiness.com/v/6301584341001#sp=show-clips
Lol
You can’t pick a better stock because you don’t know of one, blocked. Bye.
BB - We know you aren’t invested in BHL…
Probably a good move trimming some of the the big caps now. At ~£52m I can’t believe you are negative about Braddas prospects !
Ok, you pick ANY stock, name the stock and current price ? I would put BHL against it in share price return from now until year end.
Name just one stock which will give greater sp % rise from now until year end and we’ll see how it goes…
Easy for you to bash this but tell me a better play ?
Haggis - They have some a strong cash balance and good royalty deals to help with cash flow (thus avoid dilution) in the short term:
“Highlights of the Royalty Agreement:
• Total consideration paid by LRC for the royalty is up to US$8 million
• LRC granted a 2% gross overriding royalty (GOR) over Bradda Head's sedimentary lithium claims in Arizona (Wikieup project and Burro Creek project) leaving the Company's pegmatite and brine projects unencumbered.
• Royalty consideration will be paid to Bradda Head at three predetermined milestones:
o US$2.5 million on Closing
o US$2.5 million once Bradda Head has obtained a 1 million tonne (Mt) lithium carbonate equivalent (LCE) resource with a minimum lithium grade of 800 parts per million (ppm)
o US$3 million once Bradda Head has obtained a 2.5Mt LCE resource with a minimum lithium grade of 800 parts per million (ppm)”
I agree they’ll absolutely need finance if they go into production however with Jim Mellon owning over 20%, the resources being on Tesla’s door step & the resource base growing fast I either think they’ll be bought out at a massive premium, get great JV deals or Jim will help ensure any financing is good for holders.
GL
PS - ALL is a great stock and on the watchlist also !
For Lithium investors BHL is worth a look, 9 projects, just one of them (Basin East) has 185kt JORC already and it’s being upgraded in “Q1”
I can see them growing resource exponentially this year & beyond.
Fully funded for 2022, ~£52m market cap.
DYOR
10 Reasons I think BHL is a good long term investment and could see exponential growth
Please do your own research - always
1. Lithium demand is set to grow long term, current and next generation EV batteries are dependent on significant quantities of Lithium, it is also used in many other energy storage applications
2. Supply is tight and much of the current supply is thousands of miles away from the US, for example Tesla have agreements with Australian supply, this simply isn’t good from a ESG perspective
3. The Lithium price is up ~600% in the last year
4. US Gigafactories growing at pace, 13 more to come online between now and 2025
5. The US know they are behind the curve, they need to catch up and can’t depend on other countries for energy any longer. Less than 1% of global lithium is mined & processed in the USA (according to a recent CNBC article “How the U.S. fell behind in lithium, the ‘white gold’ of electric vehicles”)
6. BHL are fully funded for 2022, have a concrete plan and are delivering at pace. They also have smart royalty payments coming in upon specific milestones, these provide cash and reduce the need to raise cash via placing.
7. BHL have at least 9 projects, just one of them (Basin East) has a JORC of 185k/t, this resource is due to be updated in “Q1”, at $75,000 per tonne the maths on just the current 185,000 tonnes is staggering.
Other 2022 catalysts include; Maiden Wikieup resource in Q2, Drilling at San Domingo in Q2, more drilling at Basin East, drilling at Basin North & Drilling at Eureka & Wilson….The year end resource could be very impressive.
8. BHL have projects with all 3 types of Lithium - Brine, Pegmatite & Sedimentary. This is quite unique.
9. BHL market cap is only ~£53m, this is very low vs. industry peers, clearly some are ahead of us however the biggest share price % gains are often in the period before resource grows exponentially and before production. American Lithium ~$652m, LAC $5.74 CAD, Liontown Resources $4.21bn, ALL £293m
10. High quality major shareholders, Jim Mellon owns over 20%, the Wray Family hold a significant %, we’ve also seen TR1 holders adding to their positions at around the 15p level, Raj Chawla added to his position twice in February.
As always any junior miner has risks associated however I believe that the risk vs. reward for BHL is very good, the stock has also held firm with recent macro issues (Omicron & Ukraine conflict).
I think the journey has only just started and it should be interesting to see where we are by year end and well beyond
Easy buy and hold for the long term IMO
Great assets, strong team, well funded & delivering at pace
Thanks BB - I agree BHL are much better placed than BCN for a large premium, I’d like to see us reach a much higher valuation before being bought !
Lithium price up 600% in a year, massive demand & clean energy bills…..that’s why it’s now hot property
BB - a what approximate point & price to you expect the buyout please ?
I was a BCN holder, that was very low ball, I’d expect Jim Mellon and the boys will ensure we sell the company at a good time/price !
PS - I agree I think it’s a case of rapidly prove up assets & sell to a big player.
Do you think we’d ever have more Lithium resource than $4.3bn CAD Lithium America’s Corp (LAC)?
At ~$75,000/t Lithium
Say $50,000/t to be conservative X 185,000 !!!!
Then upcoming Basin East resource in Q1 (days away)
Then all the other drill results coming in!
Massive resource here soon
Small market cap & well funded
Should be much higher
ORCA is well worth a look, under the radar new IPO, one project alone has 79m P2, total projects up to 250m barrels, small market cap, experienced management
https://youtu.be/2bAvsWxKKCA