Member Info for TrickyDicky2

I missed that. Thanks for posting.

TDT

Do you know what the full purchase price for the ferro-nickel processing equipment equipment will be? I don't ever recall seeing that published anywhere.

TDT

Where did the money come from to purchase the ferronickel processing equipment? Was that what helped bump the figure up to $700m?

TDT

Nesty

Flooding is not just a risk in the UK. Weatherly had problems with flooding. Guess where they were based?

TDT

"Been signed and the money put in Escrow!"

That wouldn't by any chance be the same bank in Cyprus?

TDT

"Unlike you, I don't have an agenda......"

Priceless!

TDT

Sorry about the format. If you paste it into a Word document you will be able to edit the format to make the layout more readable.

TDT

Construction milestone reached

ATM has also announced it has completed construction of the onsite lithium

bulk-sampling pilot plant and tantalum production circuit, with commissioning

of both commenced. The completion of the lithium pilot plant is a key milestone

in ATM’s lithium expansion programme; as such, we believe Uis could generate

early revenue from lithium, later this year. (H&Pe ~US$6.2m petalite sales vs

US$5m-20m guidance for FY24E). The pilot plant processing capacity will be 20

tonnes per hour with minimum annual production targeted at 2,400 tonnes and

an upper annual production target of 10,000 tonnes. The new pilot plant could

also be used to test run batches of ore from Spodumene Hill, accelerating the

metallurgical programme initiated post the positive drilling results released

earlier this month.

Valuation: Mar’24E GBp33/sh TP implies 365% upside

We believe the market continues to underappreciate the long-term potential of

Uis, especially compared to lithium peers and given its near-term profitability

with £12m EBITDA in FY Feb’24E (H&Pe). We have included the ~US$10m in

convertible note proceeds in our SOTP along with a ~81.5m increase in our

diluted share count assuming holders elect to convert to equity at 9.45 GBp/sh.

We also include the potentially dilutive impact of the 15.4m additional warrants

(at 9.45p strike) issued along with the convertible notes. Based on a US$1,200/t

petalite price assumption we derive a DCF-based, diluted, risked valuation for

ATM of 33 GBp/sh, down from 35 GBp, but still 365% above the current price. It

should also be noted that despite the implied de-risking of ATM’s balance sheet

we have elected not to adjust our target P/NPV multiples of 1.0x on the current

“Phase 1A”, 0.6x on the "Phase 1B” optimisation including the addition of a

commercial lithium operation, and 0.5x on the potential “Phase 2” expansion. We

also note if ATM were to use the early redemption option, the dilutive impact

could be slightly reduced.

Andrada Mining (“ATM”) has announced it has raised £7.7m (~US$10m)

through the issuance of convertible loan notes and associated warrants. The notes

are unsecured, carry a coupon of 12% pa over a three-year term and can be

converted “by mutual agreement” to ATM shares at a price of 9.45p/sh, a 35%

premium to the 30-day volume-weighted average price (“VWAP”) of 7p. ATM has

the right to redeem the notes early for cash at a 20% premium to face value. We

view the 35% conversion premium as a favourable outcome vs a typical 25% for

companies at a similar stage. With announced funding packages from the

Development Bank of Namibia (“DBN”) and Orion Mine Finance (“Orion”) taking

longer than expected to complete, the cash raised will allow ATM to proceed

without delay to ramp up the newly constructed tantalum circuit and lithium bulk

sampling plant, as well as fund further exploration and feasibility studies on the

development of a commercial lithium operation. Importantly, it also puts ATM’s

balance sheet in a stronger position as negotiations continue with larger players

around a potential strategic partnership. Overall, we estimate a 4% negative

impact on our diluted, risked NPV/sh, cutting our target price to 33p from 35p,

still 365% above the current share price, with first pilot lithium output and the

strategic funding process offering positive catalysts in the coming months.

Funding delay drives £7.7m raise

Previously announced conditional funding packages, including a £4.4m

(~US$5.8m, N$100m) lending facility from DBN and a three-part package of

US$25m from Orion, are taking longer than expected to complete. Drawdown of

the DBN debt is now anticipated by the end of Jul’23 or early Aug’23, whilst the

completion date for the Orion financing has not been specified. We note,

however, the original timeline for the financing package from Orion has been

extended due to negotiations with existing lenders. Whilst ATM await finalisation

of the respective funds, the company has raised £7.7m via the issue of Loan

Notes. The net proceeds are to be used in the commissioning of the newly

constructed tantalum circuit and lithium bulk sampling plant, as well fund ongoing

exploration and lithium feasibility studies, driving ATM’s lithium growth

story. Orange Trust, a 15.62% shareholder in ATM, strongly supported this raise

taking over half of the convertible loan notes.

Interesting reading.

https://carboncredits.com/lithium-ion-battery-capacity-to-reach-6-5-twh-in-2030-says-sp-global/

https://carboncredits.com/lithium-ion-wars-us-battery-imports-soar-by-66-setting-new-record-as-domestic-production-ramps-up/

Sorry if any of the above has already been posted.

TDT

https://carboncredits.com/lithium-white-gold-powering-ev-revolution/

https://carboncredits.com/the-race-is-on-for-lithium-tesla-american-lithium-nevada-and-peru/

Safaniya

Thanks for posting 👍

TDT

TDT

Steegee

What you suggest makes an awful lot of sense.

TDT

Steegee

You're right, I stand corrected.

TDT

ShadowLess

One of the reasons why I think they will be able to fast track licenses ML129/133 into production are the comments in that hour long presentation. In particular the bit about the difficult of proving up pegmatites to JORC standard then the comment you highlight about going into production. If you don't have to prove up a resource to JORC standards but plan to go into production without doing all the drill and assay work it significantly reduces timescales.. They've established a resource at Uis to JORC standards. That's the least they need to attract a strategic partner.

It's full steam ahead.

TDT

The comment AV makes at 3 minutes 5 seconds is interesting. A part of todays funding is going towards advancing other licenses. The May 2023 Corporate Overview, page 15, states-

Spodumene Hill (ML129) ---------> Fast track production?

Lithium Ridge (ML133) ---------> Fast track production?

It seems like they can now remove the question marks.

The target date for Uis (ML134) to get into production is 2025 with predicted production levels of 15,000 tonnes LCE, 2,500 tonnes tin and 30 tonnes of tantalum per annum. I wonder what the production targets for ML129 and ML133 will be? More importantly what timescale will fast tracking these two projects into production mean?

TDT

"Warren Buffett believes the quality of a company's management is a key factor on whether a stock will be a good investment."

Nuff said.

TDT

I think the loan rate not unreasonable. You'd be hard pushed to find another mining company with a CLN rate that's much lower. The fact that a large number of the CLNs are with The Orange Trust is a positive IMO.

It's a pity this news has been largely glossed over "Commissioning of the bulk sampling plant and tantalum circuit has commenced." Another RNS confirming that commissioning has been successfully completed should follow in due course. On top of that exploration results from 'Lithium Ridge' are due this month. With news on production of a tantalum concentrate starting and laboratory test results for battery-grade lithium hydroxide due before the end of the 3rd. Q there's a lot to look forward to. All of that before the big one which is the announcement of a strategic partner. Add into the mix today's buying opportunity.

What's not to like?

TDT

PS If I've missed anything out please feel free to add.

“We’ve got to show as quickly as possible that we can get our product to market quicker than them,” Viljoen says. “As with all gold rushes, the first gold is the best gold.”

https://www.ft.com/content/02d6f35d-e646-40f7-894c-ffcc6acd9b25

If that's what this fundraise helps achieve then that's fine by me. There's no point arriving at the party after everybody else has gone home.

TDT

I suspect most of you have picked up on this already but for those who haven’t listen to the below AV presentation/interview at the Geological Society of South Africa. There’s an interesting comment 54 minutes and 20 seconds in where AV contrasts interest shown in Andrada by a visiting Chinese party to a German one. The anecdote would only be amusing if it weren’t for the comment he lets slip about the reaction of the Chinese. He says they offered to buy Andrada and that the figures offered were, in his words, “eye watering”.

https://www.youtube.com/watch?v=gHOpa2q6Ij4

Scroll through to 54 minutes and listen from there. The quality of the recording isn’t great, but you can clearly hear what he says if you listen. Bear in mind he's speaking to geologists here and not investors.

I wonder what the figures offered were and what it would have taken for him to say yes? Everything, after all, has a price.

TDT

Just to put a little bit more flesh on the bones the 26th. June 2023 RNS said this:-

Construction of the on-site bulk-sampling pilot plant on budget and on time for completion at the end of June 2023

, with commissioning anticipated in July 2023.

Given that there was only 4 days between the release of the RNS on the 26th. June and the end of June I think it not unreasonable to assume that the construction of the on-site bulk-sampling pilot plant has been completed. As GingerBear

points out we still have 14 days to go before the end of July although the July date given for commissioning is only anticipated. If it dribbles on into August by a day/week or two its no big deal. If it does it would likely just mean another buying opportunity.

TDT