Member Info for Valuation-it-is

Lansdowne into Tungsten West, then again through TechMet into Cornish Lithium. What next? CUSN is gaining recognition and the share price is moving up nicely based on a huge resource value and npv. What's next? Do I hear SML? Redmoor may fit nicely into the bigger SW picture. Priced at only £7.66m ! Forget about the BoD for a while.............

MO............................The PEA would give an indication. It is out of date, as the total tin indicated and inferred has doubled sine it was written but it would give a guide. here you are:-
https://cornishmetals.com/site/assets/files/4962/2017-03-31-scrofty-pea-c84ol6.pdf
See also the sensitivity analysis relating to the NPV calculation. If you do a few simple sums you will see the potential upside on South Crofty alone is multiples of the current share price.

The CL announcement (CUSN is an investor in CL and CL will pay royalties to CUSN) mentions "TechMet’s largest shareholders include Lansdowne Partners (one of London’s foremost asset managers)"
Lansdowne are one of the 4 big backers of Tungsten West, taking a significant stake in the IPO, so this is the second significant exposure (albeit through TechMet) that Lansdowne have take in the South West. There is growing interest from big City funds in key minerals and metals, and in the safe secure UK jurisdiction.
I think this indicates that CUSN will be able to finance their de-watering and feasibility study for South Crofty and may have several different finance providers to choose from.

During PMQs Boris states “..we are going to use Freeports to ensure that we support them as hubs for the processing of those critical minerals here in the UK.”

At yesterday’s Prime Minister’s Question Time In response to Andrew Murrison, MP for South West Wiltshire who asked:

“Mr Speaker, Net Zero, Levelling Up and Building Back Better can’t happen unless we have a massive increase in the supply of critical tech minerals like silicon, copper and lithium, but Beijing controls most of them.

Noting China’s recent tech minerals leverage on Japan, does he agree with me that the success of our green industrial revolution hinges on advancing our indigenous Silicon Valley and, free of the EU, what fiscal incentives can he now provide to make it happen at pace?”

Prime Minister, Boris Johnson, replied:

“I thank my Honourable Friend for that and as he knows, there are some very, very interesting and potentially very lucrative sources of minerals such as lithium in this country whose exploration, discovery and reuse we are encouraging.

But secondly, on the tax point that he rightly raises we are going to use Freeports to ensure that we support them as hubs for the processing of those critical minerals here in the UK.”

Oddlyeven

No, the 13p is what Tech Met are paying for their initial tranche of Cornish Lithium shares NOT Cornish Metals Inc shares.

Here is the announcement from Cornish Lithium (my comment to follow later)
Part 0
Cornish Lithium secures transformational funding package from leading technology metals investor TechMet

Cornish Lithium Ltd (“the Company” or “Cornish Lithium”), the innovative mineral exploration and development company based in Cornwall, UK, is pleased to announce that it has secured a transformational investment package of up to £18 million (the “Investment”) from TechMet Limited (“TechMet”), a leading technology metals investment company. Securing long-term investment from TechMet is a significant step forward for Cornish Lithium and allows the Company to step up its activities towards creating a domestic supply of lithium and other battery metals for the UK. The investment represents a key milestone for the Company given that it is the first investment that Cornish Lithium has secured from a financial institution. Cornish Lithium expects to benefit from TechMet’s deep knowledge of the battery metals supply chain and extensive commercial and strategic relationships.

Highlights
• The investment from TechMet, a company that invests in technology metals projects around the world, will enable Cornish Lithium to fast-track development of its project portfolio in Cornwall and to significantly advance the Company’s strategy of establishing a domestic supply of battery metals.

• The investment will occur in two tranches: The first tranche of £9 million to be invested upon receipt of shareholder approval and the second tranche of £9 million will be invested, at the option of TechMet, following the delivery of the Scoping Study for the Trelavour Hard Rock Project (“Trelavour Project”), which is on track for completion in Q2 2022.

• The funding package will enable the Company to significantly accelerate its projects, including:

o The construction of a beneficiation and hydrometallurgical demonstration plant that will enable the Company to optimise the low carbon Lepidico processing technology to which Cornish Lithium secured a 15-year royalty free licence in 2020.

Part 1
o The construction of a beneficiation and hydrometallurgical demonstration plant that will enable the Company to optimise the low carbon Lepidico processing technology to which Cornish Lithium secured a 15-year royalty free licence in 2020.

o Progress towards feasibility studies for the Trelavour Project, which will enable the Company to materially progress construction plans and to seek the necessary finance to build the Trelavour Project and move towards commercial production.

o Drilling additional geothermal evaluation boreholes and developing associated direct lithium extraction sites to further demonstrate Cornwall’s prospectivity for lithium contained in geothermal waters. The Company will also progress studies into the possibility of using heat from these boreholes to decarbonise local industries in Cornwall.

• Simon Gardner-Bond, Chief Technical Officer of TechMet, will join the Cornish Lithium Board.

Jeremy Wrathall, CEO and Founder of Cornish Lithium, said:

“We are delighted to welcome such a prestigious investor to Cornish Lithium. TechMet’s support validates the extensive work we have completed in Cornwall since the Company was founded in May 2016. The investment by TechMet, combined with the proceeds of the recent crowdfunding campaign, will provide the balance sheet strength and financial certainty to enable us to progress our projects and to create value for all our shareholders.

“Cornish Lithium has reached an inflexion point in the Company’s development where larger scale investment is required. This funding underpins the Company’s ambitions in Cornwall as we seek to progress our projects towards construction and commercial production. TechMet has the financial capability to contribute additional capital if required and thus represents a strong, long-term partner for Cornish Lithium. This investment reinforces the merits of our projects as we seek to progress towards commercial production. Importantly, TechMet’s mission of building ethical and environmentally sound supply chains for the metals needed to ensure the success of the clean energy and electric vehicle revolution, is fully aligned with that of Cornish Lithium.

Part 2
“As the world transitions towards electric vehicles a material lithium supply gap is looming, especially in the UK given the requirement for an estimated 75,000 tonnes of lithium carbonate equivalent by 2035, according to The Faraday Institution. Cornish Lithium intends to position itself as a key player in the necessary supply chains to bridge that gap.

“Cornish Lithium looks forward to welcoming Simon Gardner-Bond as a director of the Company and to benefitting from Simon’s depth of knowledge and experience that he will bring to bear as we develop our projects.”

Brian Menell, CEO and Chairman of TechMet, commented:

“We have been extremely impressed by the innovative and talented Cornish Lithium team, which has made considerable progress over the past few years. We are excited to be supporting the next phase of development and building a long-term partnership with Cornish Lithium, which could become a cornerstone of the UK’s battery metal supply chain as well as having very positive implications for Cornwall’s local economy.

“This financing is an important step in advancing Cornish Lithium’s development programme. As the UK’s pre-eminent prospective lithium producer, it also represents an important step in the development of a domestic lithium supply for the UK economy.”

Part 3
“This financing is an important step in advancing Cornish Lithium’s development programme. As the UK’s pre-eminent prospective lithium producer, it also represents an important step in the development of a domestic lithium supply for the UK economy.”

TechMet was founded in 2017 by British/South African metals industrialist, Brian Menell, with the aim of developing assets that produce metals for which global demand is expected to vastly outweigh supply as the world moves to clean energy technologies. Its assets include Li-Cycle Corp – North America’s largest lithium-ion battery recycling company listed on the NYSE; Brazilian Nickel – a mining and extraction company developing production of nickel and cobalt suitable for EV batteries; US Vanadium – which produces vanadium products suitable for redox flow batteries; and Tinco – a portfolio of producing tin and tungsten mines.

TechMet’s largest shareholders include Lansdowne Partners (one of London’s foremost asset managers); the US International Development Finance Corporation (the US Government’s development finance institution); and Mercuria (the global energy and commodity trading company) together with TechMet Chairman and CEO, Brian Menell.

Use of Proceeds

Proceeds from the Investment will be utilised by the Company to progress both its hard rock and geothermal work streams and is expected to provide sufficient working capital to fund its ambitious development plans to at least the end of 2022.

With regard to Cornish Lithium’s exploration plans for lithium contained in geothermal waters the funding will enable the Company to drill and evaluate additional sites, further demonstrating the regional potential in Cornwall. In addition, the Company will explore opportunities to generate complimentary commercial heat supplies in order to provide local businesses with low carbon energy. The funding will also enable further research into direct lithium extraction and refining technologies to optimise the recovery of lithium in a cost effective and sustainable manner.

In relation to the Trelavour Project, the proceeds of the Investment will enable Cornish Lithium to complete several key workstreams. Following completion of the Scoping Study, the Company intends to construct a demonstration scale beneficiation and hydrometallurgical plant in order to further refine the metallurgical extraction process, which will ultimately inform the design of a commercial production plant. The Company now expects to have sufficient funding to complete a feasibility study on the Trelavour Project which would be used by the Company to obtain the necessary debt and equity finance to enable project construction.

Here is the last part:-
Terms of the Investment

The Investment, which is subject to shareholder approval, will occur in two tranches raising up to £18 million at a weighted average subscription price of 16.12 pence per share. The Investment will be split as follows:
• Tranche One: TechMet will subscribe for £9 million of new ordinary shares in Cornish Lithium at a subscription price of 13.5 pence per share.

• Tranche Two: Following the publication of the scoping study for Trelavour, TechMet can elect, at its option, to subscribe for a further £9 million of new ordinary shares in Cornish Lithium at a subscription price of 20 pence per share.

• All new shares issued to TechMet will rank pari passu with existing ordinary shares in Cornish Lithium Ltd.

• Following the completion of Tranche Two, and for so long as TechMet maintains a shareholding of 15% or above, TechMet shall have a Right of First Offer to market lithium products from the Company’s projects. TechMet will work with Cornish Lithium to prioritise UK based customers, including UK battery and automotive manufacturers.

• Following TechMet’s Tranche Two subscription, Cornish Lithium shall issue TechMet 13,500,000 warrants to subscribe for shares at par value upon the sooner of: (i) Cornish Lithium listing on a public exchange; or (ii) the Company authorising the commencement of construction of one of its projects at a commercial scale. The warrants are designed to further incentivise TechMet to utilise the experience of its team and extensive industry networks to help Cornish Lithium raise the required finance to build its projects.

Director Appointment

Simon Gardner-Bond will join the board of the Company as TechMet’s nominee. Simon is TechMet’s Chief Technical Officer and has had a 20-year career as a geologist and mining analyst. Simon’s experience of capital markets and project appraisal will be of great benefit to the Company going forward.

SW'er Agreed, but I bet those who have shorted the 2.44m shares now wish they had not done so. I wonder if they are trying to close their position?

Whilst it is probably the all time high that the tin price has now reached, which is pushing up CUSN, having a lithium angle is good news too. CUSN will receive royalties when lithium or electricity are produced. The world seems to be waking up to the amount of tin and copper that CUSN has at South Crofty and possibly at United Downs. Every move up in the tin price just makes it more likely than SC and UD will be funded and go back into production. It is interesting that the price seems to be being driven from Canada. Any thoughts about that anyone? 20p looks as if it might be on the cards tomorrow. GLA

Dumbpunter
BL has one which I think is the most advanced of those to appear in Cornwall. Cornish Lithium is building a pilot plant at United Downs for DLE from Brine, and another at Trelavour where it is going for extraction from hard rock. CL also has a JV with Imerys ( China Clays) and a 90% owned venture called Geocubed with Geothermal Engineering for deep DLE using Geo energy. So a lot going on at CL.

Leopoldio
Were you watching on BBC politics channel? Around what time did you hear this?
It is probably too early to be considering processing - both production of concentrate and subsequent smelting. When we have a Bankable feasibility study(BFS), then mine finance and processing plant finance will be discussed. Given the steep rise in the tin price - at an all time high today - the chances of a BFS are improving greatly and in my view it is only a matter of time before South Crofty (SC) is refinanced and if resources are proved up in the UD/Trenares/Carnkie areas that will also be an attractive proposition. Meanwhile there is the possibility of SC processing ore for a number of operations. It would seem odd if having built75% of a resilient system the UK passes up the possibility of 100% by not creating a smelting operation. To send concentrate to the other side of the world and bring it back is hardly green or resilient. There have been suggestions that the Government might consider treating smelting as a energy dependent heavy user of power, and act to protect by guaranteeing a price for energy which would enable it to be competitive. I guess though at the moment it is one step at a time although that could change rapidly in the current geo-political melting pot we are in at the moment.

All agreed. And drawing attention to those matters is doing a favour to all those who might consider investing here, as it will put them off.
At some point though, the really bad stuff is in the share price, or the share price is below the value of the assets to others. I think we have reached that point.
So what is the answer? Vote the BoD out at the next AGM? Wind the company up, sell off the assets? At least suggesting that would be doing something positive.

There is zero value to be gained from everyone on this board going through a daily ritual of BoD criticism. Anyone coming to this board now knows how LTH's feel. Perhaps it is cathartic for some, but it has just become boring.

Fira "So what's pining the sp to the floor ???"

This will act as encouragement to the shorters / those interested in reducing the share price, but one answer to your question is - a look through the posts on this board would put a lot of people off.

MO
Good post. Anyone who invests US$100m for a 9% stake in a company is certainly expressing a vote of great confidence and has done considerable due diligence.
$100m will presumably enable SLI to get cracking on its installation and perhaps raise some project finance. Whilst there is a little dilution I think that is probably going to be acceptable if Koch brings some expertise to the party.
Questions to ask......
Will SLI be tied to Koch for any services or equipment? Will the prices of S+E be arms length? Will Koch have board representation? How are the other 91% of the shares owned? Lots of small shareholders or few bit /powerful holders. What expertise does Koch have? Are there any synergies derived from Koch's presence? How soon will the project be up and running? Does this investment bring forward the date for start of operations?
On a different line of thinking, I wonder if the publication of the Blue Orca report was intended to scupper the Koch investment? It would be surprising if Koch had not gone through the BO report very thoroughly before this announcement.
And MO, what cash flow are you expecting when SLI's first project is up and running? How does this compare with the market cap?

M.Oak Many thanks for the tip-off.

The tin price is near its all time high. With huge resources in tin and copper in particular, CUSN's share price will have a good correlation with their prices.

Lupi re your re-posting
Thanks for your clarification - much appreciated.
" We are trying to arrange finance against 99.98% of our total worth. "
Whilst looking at market cap is one way of assessing total worth, it is not the only way. The true and current value of the net assets on the balance sheet is probably the best way. And that does not mean taking the values as stated on the balance sheet as they will be out of date.
Companies looking at this situation will value the assets differently depending on what they can achieve with those assets. There will be those parties that are interested in taking them over, but will talk down their values so as to minimise the price they have to pay. Some on this board are doing that job for them. One wonders if all is as it seems.