Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
I specifically asked this question as I thought the same - however the answer was that it the MSC deal was not contingent / awaiting conclusion of the raise.
Also price sensitive news can't be withheld by the company, so if there’s no news it’s because there really isn’t any that they can share yet.
Irrespective, I anticipate news literally any time now of the signed trial agreements and I also expect a significant rerate off the back of this. Hope I’m right.
Well as the placing and subscription has already raised £1.5m there is clearly investor appetite, and as they’re now only looking for a further £1m through OO (which the placing and subscription investors can also partake), to say there is ‘absolutely no chance’ is utter rubbish.
Also as has been stated previously - the request on investors is much lower this time (only 1 share offered per 19 held), so my read of the situation is that a full subscription is, on balance, quite likely.
What are you worried about exactly considering you’ve treated this as a write off? Presumably your intention here is to ‘save’ investors by convincing some to sell, where would we be without such philanthropy..
Also there’s obviously no buy out coming anytime soon.
Investors simply expected the full tripartite to be signed and agreed by now with funding secured off the back of it. That’s not yet happened, therefore the price is slightly down. Anyone overplaying this from any other angle (bull or bear) is, imo, being deliberately disingenuous. Especially those individuals who suddenly appear out the woodwork as seasoned 10y LTH’ers - I can’t believe how many of you there are!
StockCheck,
Any new placement will be offered at a discount to the current market rate, so 5% dilution is too optimistic if this scenario. Also, given the ongoing situation and escalating funding concerns, it’s uncertain at what the SP will actually be the time we get a funding RNS. In my opinion, we’re looking at yet another dilution that would be closer to 10%. That’s if £2m is even enough to get us where need to be (the previous raises weren’t) and the BoD don’t ask for more.
Also, the impact of this dilution goes beyond any immediate price surge post-funding. A 10% dilution would lead to a SP that’s 10% lower than it would have otherwise been, particularly once/if we make it commercial. Essentially, we’re yet again continuing to inject capital merely to maintain our position and stand still.
While it's disappointing to witness the recent dip in our share price, it's a common occurrence to see profit-taking after a period of notable increases. However, let's focus on the bigger picture. Jason has made clear his expectation that tripartite agreements are expected to be signed and announced in December, of which we are halfway through already.
It's crucial to remember the significance of our trial with MSC. The recent shore capital analysis highlighted that success in this trial means QED could potentially earn approx £50 per tonne. To put this into perspective:
* MSC's annual fuel consumption is a massive 10 million tonnes.
* Even if we only supply 10% of MSC's fuel needs, we're looking at potential annual revenues of around £50 million.
* Our operational costs are expected to be low, whilst I’ve seen no data on this I’ve personally assumed £10 per tonne as a starting estimate.
* Based on this initial supply deal with MSC, we could be looking at annual profits of about £40m.
* Considering the global Heavy Fuel Oil usage is around 200 million tonnes per year, and we're currently targeting just 1 million of that with MSC (merely 0.5% of the market), the growth potential is immense.
Recent news of the promising results of bioMSAR testing and our rapid progression towards a net-zero bioMSAR product also future-proofs our offering.
The above is also why Prep was correct in saying that securing funding won’t be a problem.
Theres so much to be positive about. Let's stay focused on our long-term goals and the promising prospects ahead and not worry too much about the short term fluctuations.
Barking it was only a few months ago you referred to QED being a scam we’d all been suckered into and how you’d totally written your investment off, yet it transpires you recently topped up! Now we’re back to the doom-posting. I can’t keep up.
If you’re genuinely asking Vince then I’m actually pretty satisfied with the update, given the circumstances of where we are. HAZOP was completed in recent weeks, which demonstrates MSC are still very much supportive of this trial even after the delays. That alone gives me comfort.
If fuel supply agreements are announced this quarter, which finally seems to be happening, alongside completion of the Morocco trial, then it’s not unrealistic to think we’d have a major uplift in SP pretty rapidly. That’s irrespective of what happens in Utah imo.
Plenty to do still, but there’s enough upside to for me to remain optimistic for now.
Whilst true HF14, it’s more complicated than that. If MSC wanted MSAR alone we’d likely be underway already - it’s their primary push for Bio-MSAR that’s also slowed things up. JM clearly stated yesterday they’ve secured glycerine supply now which was previously a huge obstacle - and this should now unblock fuel supply and allow a terminal location to be agreed. JM said he was at a terminal last week and they have now narrowed down options and expect to make progress soon on this front.
Andy has a huge job in turning the culture around at Quadrise, imo. It’s possible though, and on the surface it looks like he could be the right man for the job. He certainly made the right sounds in the first couple of months of his appointment, but saying that I haven’t seen much since. Let’s see.
Im glad to see optimism, but I don’t share it. It’s been over 2 years since the MSC JDA was announced and we still don’t even have a producer lined up. “Discussions with feedstock suppliers continue” as per the most recent update is an insult at this point. My excitement has flatlined.