Member Info for TalygarnTom

A couple of useful links. Self proclaimed Mr Lithium, Joe Lowry has written up the findings of his 8 day around the world trip to understand what's really happening in the Lithium market. And a link to Blackwall news service. (select the EV tab).

https://www.linkedin.com/pulse/lithium-best-timesworst-times-joe-lowry/?published=t

https://www.blackwall.cc/news/1

Perspective: https://1drv.ms/u/s!ApfJej54wSbFhq0pQIYIMdjjBRCp8g

I posted these links earlier but found an additional link to add that reflects the news from Sirius this week. For those that are not aware Chris Fraser was one of the key people responsible for arranging the financing of the multi-billion dollar Fortescue iron ore project in Western Australia between 2006 & 2009.The project involved the building of the worlds heaviest haul railway at the time and was ultimately very successful.

If you are a novice investor I would advise you to block out the noise and to think about the long term value of this project. Take a look at the links below one by one and consider the similarities between that project and this one. More importantly, I would urge you to look at last link which shows the appreciation in the share price between 2006 and and 2008 as the mine neared completion and the larger investors came on board. Although weeks like this are bruising, they often present the optimal point of opportunity for shareholders and I for one will be adding significantly overt the coming weeks.

https://www.smh.com.au/business/cost-blowout-on-fortescue-rail-and-port-20060406-gdnb9f.html

https://en.wikipedia.org/wiki/Fortescue_railway

http://www.evernote.com/l/AB5QqB01UchNiaQAc8ZwUIpyy95fpgzf4vM/

https://www.railwaygazette.com/news/single-view/view/fortescue-opens-the-worlds-heaviest-haul-railway.html

http://www.evernote.com/l/AB7sQ4_x4wZAb7xEnJ66E66-2oizyAagoM8/

https://twitter.com/alextonglithium/status/1037886831516246016

I think you're spot on with this. I think ADM are going to have very significant involvement in Sirius and that is tremendous news for shareholders and will very likely be a catalyst for more institutional interest. That is when the share price will really start to move closer to the NPV.

ADM are a public company and they need large global projects that can create significant value for their shareholders. From their point of view this would be a great fit.

https://www.adm.com/products-services/industrials/fertilizers

"By partnering with the least-cost global fertilizer manufacturers and utilizing our logistical supply chain, we are able to pass on this least-cost value to our diverse end-user customer base."

Given that Poly4 produces margins in excess of 80% the benefit to Sirius may be that they can structure a deal with ADM that is very attractive for Sirius shareholders.For example, they could offset the financial contribution from ADM against attractively priced future supply contracts and negate the need to raise additional equity.

It makes perfect sense. The analysts were naming the miners BHP & Hancock and it was Chris that brought up the fertiliser end users. I think he was trying to help them without actually saying it. One analyst was concerned about the "chicken & egg" scenario but Chris seemed very relaxed about it. Of course he is. He can go to the banks and when they ask him what about the additional equity and he can pull out the AMD card. Then he can go back to AMD when the senior debt is secured and negotiate the additional equity from a much stronger position. Chris is a banker not a miner, he knows how they think. I think he has put a lot of emphasis on fixing costs as much as possible and de-risking in advance of the stage 2 financing because he knows that once that's agreed he's almost home and dry.

Listening to the end of the conference call I think that there is a very high possibility that Archer Daniels Midland are the interested third party with a $62Bn balance sheet. Makes perfect sense for them as a business. Chris very confident about raising the additional finance which would make sense if you can go to the banks with a company like that as a major strategic partner.

Webcast - https://event.sharefile.com/share/view/s14631b89ffd4a4f9

Presentation pdf - https://siriusminerals.com/downloads/stage-2-capital-update-september-2018/

Dickyboy, with respect, I couldn't disagree with you more. The boards job is to deliver the project and long term shareholder value not to manipulate the share price. Chris Fraser has 123,747,368 shares so any decisions taken affect him more than anybody. This mine in a key Northern Powerhouse project and has to stand the test of time so it has to be constructed appropriately. If the experts decide it needs a wider tunnel then it has to have a wider tunnel. Likewise, given that Chis Fraser's expertise is in debt finance (he's a banker not a miner), if he thinks the project would benefit from being de-risked ahead of stage 2 finance, then so be it. You have to remember that Chris was part of the team at Fortescue in Australia and they delivered a world class mining project, very similar to this, in 2008. If you look at my previous posts on Sirius you can find the links.

He's mentioned in the FT article in the first link. A mine - a railway - debt finance.

"An Australian mining company has raised more than $2bn in high-yield debt in a financing that underscores the liquidity of global capital markets and investor appetite for exposure to China and resource stocks.

Chris Fraser, a Sydney-based investment banker at Citigroup, which arranged the financing, said the deal was executed quickly and that it was a sign of good liquidity and investor interest in China and iron ore."

Yorkshireman - What are you talking about? Chris Fraser has been down this road before and is very capable of delivering this project. In 2006 he was involved in the financing of Fortescue in Australia and people doubted they could build a mine and connecting train line from the Australian outback to port but they did it and ultimately the shares rewarded investors very well. The mine opened in May 2008. See links below.

http://www.evernote.com/l/AB5QqB01UchNiaQAc8ZwUIpyy95fpgzf4vM/

https://www.railwaygazette.com/news/single-view/view/fortescue-opens-the-worlds-heaviest-haul-railway.html

http://www.evernote.com/l/AB7sQ4_x4wZAb7xEnJ66E66-2oizyAagoM8/

We might finish in the blue at this rate.

Over reaction here is a regular occurrence if you look at the longer term trend. See below.

https://1drv.ms/u/s!ApfJej54wSbFhq0pQIYIMdjjBRCp8g

gimme - Jambon sent me a message to say he wishes you all well and to tell you that he's having a great holiday! You can contact Robert Pursell at robert.pursell@koovs.com

They have also introduced a menswear brand called "Garcon". According to Linkedin the Senior Design Manager for Garcon, Rohan Agnani, is also listed as having been a Senior Executive at Future Group.

http://in.fashionnetwork.com/tags-cover-story

https://www.livemint.com/Companies/G9vJ0t8iUBOZ4oyusnXrdL/Future-Groups-Cover-Story-brand-eyes-100-crore-in-sales-th.html

Amazon could invest up to $700 million in Future Group.

"The Indian retail giant’s subsidiaries Future Retail Ltd and Future Lifestyle Fashions Ltd are public-listed. The company’s brick-and-mortar presence could help Amazon bypass foreign direct investment (FDI) regulations."

https://www.moneycontrol.com/news/business/amazon-could-invest-upto-700-million-in-future-group-report-2884151.html

I've just noticed that Future Groups Cover Story brand has just hit the Koovs website.

http://www.evernote.com/l/AB5dZi7X5vtCyJ9DogOkVN5lwljOwrFX2RE/

Rocket Internet owned Jabong was sold to Flipkart owned Myntra in 2015 for $70m. In 2018 it is estimated that Jabong will sell between $400m- $500m. Hopefully, FLFL's collaboration will drive growth for Koovs. Even if it achieved a quarter of this level the share price would rise well beyond the IPO price. The Indian e-commerce market is very different to the UK e-commerce market. Had Paul Scott been working for Myntra the deal would probably have never happened! See link - http://www.evernote.com/l/AB6AZ6IxSAhCpK4UksKm79RaRS4B_T5sNi0/

islas - Being as you are from the industry, do you know if the VCSEL wafers that are produced by Finisar in Texas do exactly the same job as the IQE VCSEL wafers in Apple devices?