MAST V CORCEL25 Jul 2021 12:56
For the purposes of this exercise, I am going to ignore the Burwell project as in my opinion this is the reason the gap between Mast (£20m) and Corcel (£5m) market caps has not closed. The ongoing saga has led shareholders to leave Corcel as the story of ‘imminent’ closure on the deal has been going on for many months and has affected trust in the BOD.
So, moving on.
MAST issued their half yr. report on 21st May. They set out their targets for the near future.
Target 1: Bordersley (5 MW base case with upward optimisation capability of 19.12 MW) Debt financing is not yet in place but is being negotiated with a blue-chip financier at very competitive commercial terms.
Target 2: Site capacity 9 MW.
Inking the SPA will be a milestone in the development of MAST's portfolio although not yet done. MAST expect GBP 42,500 per month in revenue from this site as soon as the full site achieves steady state production.
Target 3: West Midlands-Birmingham Rd 6 MW – update
Pending final execution of agreements on Targets 2 and 3, we are prevented from disclosing vendor/lessee, exact location and other details for these sites but they, along with Bordersley will form an initial nucleus from which we plan to expand our site portfolio to 40 - 50 MW production capacity over the next 12 months and 300 MW within the next 36 months.
All in all, a good story which has the market cap currently at £20m.
Now on to Corcel.
Project 1. 100% ownership of Avonmouth.
CRCL acquired exclusive rights to 100% of the 50MW Avonmouth gas peaking project and also acquired the rights over an additional 15MW of potential grid connection capacity and associated land at the Avonmouth complex.
This single project (acquired in May). Is around 2x the size of all of the projects currently ongoing at MAST.
Project 2. 40% ownership of ‘shovel ready’ 50MW Tring Road Project.
So simply based on these 2 projects we have around 3x the capacity that MAST have and yet the market cap has fallen to £5m purely based on the Burwell project delay. If we assume the BOD manage to get Burwell over the line as well, then we are sat with 105 MW 100% owned and 50MW 40% owned. 125 MW total
MAST Max at this point is 33MW. Corcel Without Burwell 105MW (with Burwell 165 mw).
Then Corcel have Mambare, when the new mining licence is issued this will be back in the same position as it was when it held the market cap at £40m.
Corcel also have A$4.6m owed to them which could see the WoWo gap Nickel project coming to the company and this is a better project them Mambare (higher grades of Nickel). This has to be settled by yr. end.
These 2 projects could take the market cap to £80m once mining licences are issued.
With the current project’s worth much more the MAST current projects (you could say minimum 3x more capacity = 3 x times market cap, so £60m).
£60m + £80m (Mambare and WoWo) = £140m Market Cap Possibility v Currently £5m.
The only issue with Corcel is ma
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