1. How much longer is the cash we've got in the bank going to last?
2. How much cash is it going to cost us to drill down into Zaranou to get a MRE?
3. What, if any, are the plans with Chad moving forwards?
4. Does IRR plan to go it alone in Ghana, continue to drill and prove up the resource and then transition from explorer to producer?
5. Are there ongoing talks with majors / companies in turning our lithium in Ghana into a JV? Would this give us the cash to fund Zaranou?
6. What are the approximate timelines for an initial MRE at Zaranou?
I can't help but shake the feeling that the market knows we will need to raise funds soon, and as a result us LTHs are going to get stung (again), especially if we don't re-rate before having to raise. I fully expected the lithium MRE to re-rate us back to 25p+ at the low end. This would have made further dilution mildly more palatable.
Lots of promising news and I want to keep adding where I can. But there's a a few unknowns that need clearing up sooner rather than later imho!
Bentnose - I totally agree. Interest from one of the big boys would also likely send a rocket up the SP as they don't mess about with assets that aren't going to considerably strengthen their portfolio.
We need updating on timelines and strategy for sure.
I am with Mike here. It is incredibily frustrating that no much how much good news IRR pushes out the market doesn't seem to respond accordingly. I get that we are down here because the market cottoned on to the fact that we would need funding, and we raised at low levels, but given how far the company has come from the heady days of 35p+ and a MCAP of around 100m at one point, it makes absolutely no sense to me that we remain where we are.
After all the build up to the Ghana lithium resource estimate I was massively disappointed to see - not just a muted reaction - but a negative reaction from the market to the news. It baffles me.
I will continue to add at these levels, bringing my avg down and trusting in the fundamentals of the business. What we need now is a clear road-map laid out by VM to explain how we are going to move back to a 100m business and ideally beyond. I had previously set an ambitious price target of £1 a share before selling which would value the business at around 330m. This looks ambitious at this stage. But somewhere between 60-70p should not be unrealistic given the assets we are holding.
Vince's next bit of PR is important and I hope for all our sakes (and wallets) he nails it.
Another 4000 shares added for me today. News so far this year has been good. Will be looking at add more if SP stays around these levels before the MRE, though I expect we'll see sentiment continue to build in anticipation of the news.
Will be interesting to see where we are SP wise on the day the news drops.
... to all long term holders. Big quarter for the company ahead of us, let's hope it delivers on the promise it has shown in Ghana and the Ivory Coast. Small top up for me today at these crazy levels.
All the best
There is lots of good information posted on this BB about the huge forecasted demand for lithium, driven primarily by the shift towards EV in the automotive industry. That said, the price of lithium has declined by around 40% from the lofty highs of January 2018 when the penny dropped that this resource (along with cobalt and nickel) was going to be in higher demand over the coming years. The FT posted a good piece recently highlighting the oversupply of lithium and subsidy cuts for EVs being the key drivers of the decline in price. I'd be interested to hear people's thoughts on two questions:
1) Despite the numerous articles discussing demand for lithium for various applications, are we at risk of a global oversupply in the long term?
2) Should the world economy fall back into a recession - as economists and commentators are increasingly murmuring - what effect would that have on lithium prices?
On the first point, I would imagine that cost of production and quality of grade will become two extremely important determinant factors when establishing mine feasibility - and our results to date bode well in that regard. On the second point, I genuinely have no idea. My instinct would say that a global slowdown would lead to a decreased EV demand and therefore a knock on effect downwards on lithium prices. But then I also struggle to see the price heading much lower from here (possibly wishful thinking!).
For IronRidge, a lithium bull market as seen in the latter half of 2017 at a time when we are two or three financial quarters away from a JORC estimate in Ghana would propel this SP to new highs (in my opinion). I'm holding here until £1.00 and fully believe that price to be realised in 2020.
I am pleased that the company itself has made more of an effort to PR itself on social media over recent weeks. Whilst yesterday's RNS was of course more good news for us LTHs, the tweet about meeting with VW appears today to have given us a much welcome bump too.
Good job IRR.
This looks VERY promising. Can someone confirm to me that the grades that we're seeing at Ewoyaa West (6%!!) should not be viewed in the same light as the numbers at Egyasimanku Hill (1.48Mt @ 1.66% Li2O, non JORC). If you look at Table 1, I think that the "Head Grade %" is the rock itself pre-recovered, then once it's been processed we hit the 6% number and have a "premium saleable product". Is that right?
- Spudomene confirmed as dominant material
- Low start up cost of on-site beneficiation using a "simply gravity" process
I'm reading this and believing that we're going into production.
@Not2sure we simply won't be overlooked. We are sitting on a pile of an in-demand resource in a mining friendly (and economically booming) country where two huge car manufacturers have indicated they are looking to set up shop. It is simply a matter of time of proving up what we have in the ground - and it will take some time - before the share price reflects our potential. I don't anticipate a further raise before we have some solid numbers from Ghana. And those numbers will provide a welcome boost to our SP meaning that if / when we next raise capital it'll be at a decent price.
muchbox - given that VM and his friends and family have invested considerable amounts of their own capital in the company, how likely do you think it is that he's going to shaft either the investors or the market? Or are you just spewing baseless nonsense (again)?
Thanks for your lengthy and considered reply. I'm still fully confident in the company and the strategy. Continuing to accumulate shares as and when possible which in turn is bringing my average down slowly but surely.
Have a good weekend all.