Member Info for Sjb777

Ok thanks for clarify, if that is the case then $450m needed minus $31m increase to 50%.
Minus original payment to Sll approx $20m. So actual need $400m of which BCN share is $200m

BCN have in cash £96M @ 1.3 so $125m and $150m loan

My calculation was $44m , assume spend $10m. So left $ 34m. @ 1.3 = £26m
Then as you state share issue £72m
Then Ganfeng increasing there holding in Sll to 50%. Another $31m @ 1.3 = £24m

So I recon cash today when/if Ganfeng gain approval cash will be approximately

£26M+ £72M +£24M = £122M if convert

So johnpwh you missed the sum where Ganfeng increased holding in Sll to 50% for $31m

Regarding the project finance BCN need approx half of $450 including working capital ( can,t
remember exact figure) so $225M.

They have £122 @ 1.3 =$159m plus $150m loan equals $309m.

Even more at exchange rate for pound to dollar to day.

https://www.thisismoney.co.uk/money/investing/article-9076015/SMALL-CAP-SHARE-IDEAS-Bacanora-Lithium.html.

If shares held in Isa no tax to pay on dividend

If now consider the project financing which was previously estimated at $420m
BCN cash end of June $ 44m
Loan $150m
New cash from Ganfeng $29m

So if BCN fund 50% i.e $210m they have 44+150+29= $223m.

So they are short of working capital of say $50m minus any savings to the $420m

Happy to be corrected

Let’s be honest he is unlocking value that other wise would be unattainable. Raising funds to develop assets however good is difficult in today’s climate. Plus it takes along time. He is buying assets on the cheap, doing a lot of added value through him and his teams technical knowledge. Then finding major miners to develop, it will take time to prosper from this approach but should be financially rewarding eventually.

UFO have adopted a strategy which is unique. It is not a royalty company or a mining company but a combination of the two. I looked at today’s JV and thought they could do better. But on reflection how much would it cost to get a minimum 2% royalty, £20 to £30m. If they can keep doing this type deal, in 5 years time it could be very interesting. The CEO has adopted a unique business strategy that should be admired.

https://www.reuters.com/article/us-mexico-politics-mining/mexican-president-says-wont-cancel-mining-concessions-or-grant-new-ones-idUSKCN1V21CY

https://www.lightreading.com/mobile/4g-lte/its-time-to-get-excited-about-35ghz-cbrs/a/d-id/754083

http://www.bestinbizawards.com/2019-winners/

A good achievement.
We are honored that our #SpectrumAccessSystem (#SAS) – Federated Wireless Spectrum Controller has been named the Gold winner today for Most Innovative Product of the Year in the @BestinBizAwards! bit.ly/2DuO0kt #CBRS #SharedSpectrum #4G #5G #OnGo @itarazi @KurtSchaubach
Twitter · 3 hours ag

Crystal amber have just issued an RNS. Worth a read as they are now looking to take over the running of Allied minds.

http://investors.alliedminds.com/~/media/Files/A/Allied-Minds-IR/reports-and-presentations/alm-sh-circular-v-21-2019-10-17-final-for-website-and-morningstar.pdf

They need to get court approval for a capital reduction prior to either a buyback or a dividend. See timetable and page 13.

There have been many calculations on this board ranging from next to nothing if Ganfeng take up their option to 50%. The maths supports this view $150 RK + $210Ganfeng + $25Hanwa(equity) + $25 (first payment from Ganfeng) = $410.

My assumption rightly or wrongly is that the $300 is for the following:-

1. Funding Sanora which is in my opinion max $120 ( the numbers vary on this)
2. Fund Zinnwald second half $30
3. Fund Zinnwald €159 equal to approx $180

This comes to $330m.

Peter Secker has not done himself any favours here by announcing a massive figure with out explanation as it will undoubtly spook shareholders who now fear a massive dilution or unable to raise funds.

If Ganfeng were not involved I would be selling.

https://www.reuters.com/article/us-bacanora-lithium/ganfengs-lithium-expertise-set-to-power-bacanoras-mexico-project-idUSKBN1WT26N

https://m.youtube.com/watch?v=f7MzFfuNOtY

Comparing electric v hydrogen batteries

https://www.proactiveinvestors.co.uk/companies/news/904763/bacanora-lithium-ceo-hails-completion-of-strategic-investment-by-ganfeng-904763.html

Sorry suffolkpompey you were right there are currently 134m plus 57m equals 191m shares. Then Ganfeng do have 30% I.e 191 x 30% = 57m. So market cap comparison is £67m (35 pence). Versus max price market capital of £179m.

The number of shares that will be issued will be 40.2m, equating to 29.99% of those in issue. So when finished 174.2m. The other investment is at the project level. They could not go above 30% as they would either have to make a bid or seek a waiver from the board.

So using market cap as a comparison, currently £46m will go to £59.8m. If as you state the share price was £1.37 with 134m shares in issue the market cap would be £46 x 3.9 (1.37/0.35) = £179m.

Zarro, thanks for your input. Like all Finance analysis there are assumptions which have to be made. If therefore assume $190 million of equity. Interestly your figure is close to the minimum equity raise stated in the published accounts stated below in my early message I.e $200m.

All in all your analysis in my opinion has foundation and also aligns to the analyst view of 115 pence per share. So has two pieces of independent views which align.

So thanks again