Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
Serif is correct, this is a standard list stock not AIM. See the RNS, the FCA and takeover panel are already all over this. The asset in question backs onto Brunei who have an oilfield the other side. It is of great interest, the UPL team want to drill it and there lies even more significant value.
Sensible post at 6:34 this morning. Looking at the trades over past two days it adds up to about 40M only, half those for duplicates and market makers sitting in the spread (they buy and sell to investors). The small amount of shares traded doesn’t reflect this x10 drop. Crazy situation as all the big holders will still hold. Smaller sellers and shorters most likely not the big holders.
Gambler, you are right there in never assuming but I hear that there is now significant interest in the background from various institutions and other mining companies trying to get in.
AIMGambler, they are not raising you are trying to sow doubt. They do have a small funding gap but none of that will be going to retail or the brokers. Others on here will have heard same, may have also been mentioned on the Proactive video
Yeah it might be but sometimes these companies end up taking to production accidentally! If DFC put a full funding package on the table then he will have to - part of that deal might be that they can't sell to the Chinese ?
Https://resolveresearch.co.uk/wp-content/uploads/2023/09/Blencowe-DFC-Update.pdf
Game changer - Tier 1 graphite play receives US government backing with US$5m grant from Development Finance Corporation (“DFC”) which opens the door to significantly more funding ahead
Following the DFC grant completion on 22nd September 2023 - whilst our new target is slightly lower based on more shares in issue, our upside valuation based on project expansion following the DFC involvement is 35.2p per share.
▪ US government funding opens the door to consider a much larger project US Development Finance Corporation (DFC) is providing a US$5 million grant to Blencowe, which will cover a significant portion of the Definitive Feasibility Study (DFS) costs. The DFC will also have the right of first refusal for the full project funding. Funding from such an important strategic partner opens the door for Blencowe to consider much bigger opportunities within the DFS (average production 150,000tpa), which could result in a far larger NPV and IRR. The DFC grant is only repayable if the project is funded into production.
▪ World-class graphite project with a 21-year Mining Licence already in place The highly compelling combination of potentially large-scale, shallow, low-cost mining operation with a high proportion of jumbo/large flakes represents a high- value product. The mid-2022 Pre-Feasibility Study (PFS) highlighted exceptional returns with a NPV(8) of US$482m and a 49% IRR from an average 100,000tpa project – this could increase materially from here with DFC support.
▪ Graphite demand is set to substantially outstrip supply over the next decade BMI forecasts a structural deficit for flake graphite from 2025/6 onwards, just as Orom-Cross plans to go into production. This is due to the forecasted rapid growth in Electric Vehicles (EVs) and batteries for increased renewables, with 300+ battery ‘mega-factories’ planning to come on stream in the next 8-10 years, all requiring substantial graphite. This Is coupled with long lead times to develop new graphite mines into production.
▪ Highly risked Net Present Value highlights 300% upside potential
We completed a highly conservative DCF analysis on the 100,000tpa PFS project (where production was projected to start at 50,000tpa and rise to 150,000tpa) using a 12% discount rate. Further risking begins to show the true potential. We update coverage of Blencowe with a maintained target price of 20p and a Strong Buy stance.
Musician, indeed. Definitely expected 6-8p but we will get there I am sure.
Wolf. Might be the highest volume ever no? this is much of what the market tis waiting for. If the DFS costs are only going to be $6.4M then it is 80% coverage. To me it sounds like Ralston probably didn't realise how the UK market can nitpick these things but perhaps not fully cognisant of the (more realistic cost). The DFC may actually pay for 80% and a small leftover amount for BRES to cover easily. Extract below:
Blencowe will immediately request the upfront payment of the initial 20% of the TAG (US$1 million), which together with the Company’s existing funds provides the means to continue DFS work underway and deliver the next as-agreed milestone payment with DFC. Once this next milestone is achieved further DFC funds are unlocked and so on, until the full grant is utilised and ultimately the DFS is completed.
One substantial advantage that now comes into play with the DFC relationship is that Blencowe is able to consider a larger-scale production strategy than it could do under the base-case scenario that the Company was considering whilst funding solo. The implications of this are enormous and the Company will provide a further update on this once the revised strategy is finalised. The expectation would be for a larger project from day one with a downstream processing facility built in-country to produce an uncoated battery-ready 99.95% SPG product. These factors above will ultimately deliver a considerably higher Net Present Value than the US$482 million NPV achieved within the 2022 Pre-Feasibility Study.
Good post Shrift, to add to this, I've been around a while and it sometimes takes a high volume day to move shares out from stale bulls ahead of the next move up.
Confirmed with the IR guy Sasha that the DFS will cost less ($6.4M) and they don't have to do it on a matched funding basis. That seems to be a misnomer.
I agree, I have added 500k more, it is derisked and Mike has said that first 1m will be in shortly following by a second. Other sophisticated finance will be lining up for a piece of this. And that's before the US roadshows begin!
News:
PSC
Rig contract
Resource Estimates (big!)
Drilling partner
Drill date
This is gonna be big, forget 2p be 10p into drilling.
Serif,
Pretty sure we will get the PSC in near term, it is brewing. A huge step forward for the company.
Have been holding a few million of these for years, once it begins, this might be the most exciting drill the small cap market has seen for. along time. The same field borders Brunei and Brunei are producing from it.
The point is it looks like the PSC is very close, there were a few subtle hints like sorting out the downstream with Petros and partnering on the asset. The PSC is the licence, that is everything. They have been talking about volumetrics (resource estimates etc) for ages, these are obviously done but I feel that they are waiting for the PSC to be signed. Once the PSC lands everything will have meaning and then they will be able to deal on the asset and drill it which is what the market wants. When they drill this thing and they will be drilling it we may even see double figures.
Interesting points Merchant but they are not precluded from doing business with China, not at the DFC grant stage anyway and China at present has all the processing IP so they would have to have some involvement, most likely if DFC stump up development financing then could see that change but a few steps away from that at the moment. Think we will recover.
Probably that seller at Spreadex was told they thought they were out completely, when Spreadex are going out its usually good opportunity to buy. Crap market, could even be up by end of week
I thought yesterday news to be very positive, market messing around yesterday. Added 25k this morning. Looking at wording of RNS and the twitter account too would expect initial news on offtakes. I mean surely after all those factory tours and meetings and if the quality is that good then the Chinese want to lock them in for further talks. 4.9p is too low given market was paying 5.7p abojt tej days ago. Always some numpty doesn’t understand the news and sells
There is a subtle missed here, they are deemed inside so can't accept the shares yet so that news that news must be near
LegalWolf, I noticed that you mentioned that the company is AIM listed, it is not it is Standard listed. They can't issue large raises without a prospectus and are quite limited on headroom etc. (I believe allowed to issue only up to 20% of share capital in one year - you can check that yourself if you like).
I have exchanged some correspondence with the company (who are quite happy to answer emails to their info address) and they have basically said that there is zero desire to go out and raise any large sum at these prices in this market and that once DFC is sorted they will be looking beyond the London PCB market to more of an institutional and strategic landscape. They have also confirmed that they do not have a prospectus nor one in flight at the moment adding that their headroom will reset in a few months (which I have interpreted to mean that they won't do anything dilutive now). Also that the DFS will be paid for over a period of time, the DFC are happy to fund against an up-front work programme.
It's a decent company trying to add value let's not talk it down and let's give them a chance to make us all money by doing these deals at higher prices. I'm confident that they won't roger us here !