Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
Apart from the Mining conference in Falmouth this week, CUSN appears later this month to be about to do a roadshow/number of presentations with Hannam & Partners.
The company has just produced a new fact sheet which has appeared on their website:-
https://cornishmetals.com/investors/fact-sheet/
The graph on the RHS of page two is particularly interesting. It shows the potential to increase just the South Crofty resource 5 fold to 20m tonnes or around 325,000 tonnes of contained tin. At the current $25,000 per tonne that is a lot of potential value! Compare the NPV of that after expenses, with the market cap of £68m !
MO
Good morning.
I posted on CUSN about my visit to British Lithium/ Imerys yesterday. There might be the odd useful point there for you.
LovelyBoy
Key points from trip around British Lithium/Imerys pilot plant
The BL of extracting Lithium from the rock is one of the simplest and most efficient. Several of the processes are patented by BL. They expect to be producing 20,000 tonnes of Lithium Carbonate per annum when their main plant comes on stream. At full scale they expect the production cost to be around $6-7,000 per tonne. This compares well with other rock production methods, but may be more than the cost of production from brine (underground brine not seawater)
BL expect that the gaining of planning permission will take 4 years! The general election and council elections are expected to cause delays and the EA is short staffed. (Surely HMG should do something about that! )
The site is well located, an electricity supply runs nearby as does a road link. The jv with Imerys gives 1500 acres of already industrialised land, not only ore bearing but also for waste disposal. One advantage that Bl's process has is not producing any unpleasant waste products.
To begin with the proven 40m tonnes of ore can produce 2m tonnes per annum for 20 years which will give around 20,000 tonnes of carbonate per annum. But BL thinks it can boost its reserves 4x up to 160m tonnes. The Cornish Alps are unlikely to be a source of ore as the amount of mica in the waste tipped varies considerably . The other potential by product- China Clay- is not thought likely to have a significant value.
It seems to me the UK has just what it needs here,- a critical metal in abundance and if the authorities could get their act together it could come on stream when needed by the likes of JLR, Nissan and Mini. On present form it will arrive in 2029......earliest.
Natrg
I too hope CL is a great success.
However, the "big boys" are also being offered options so if the business is a huge success, the benefits will not accrue pro- rata to shareholders.
The concerning matter is that the UKIB (UK infrastructure bank ) has shown its hand. This is its first equity deal. It appears to be looking for returns of multiples of its investment - whilst leaving not a lot on the table for small or existing shareholders. All other SW mining company shareholders should watch out. If their company is seeking finance from this state body, they can expect an inequitable ride. The moral of this story is to ask your BoD if, when raising finance, they intend to offer the same deal to all existing and new shareholders alike. If they say no, or do not answer, expect severe dilution/wipeout.
I hope the new Crowdcube investors have read and understood the deal being offered to new investors EMG, UKIB aswell as Techmet an existing shareholder. What these "big boys" get is a far superior deal vs existing shareholders and new crowdcube investors. For every pound the big boys put in to their deal, they get up to three times as many shares as existing investors or new crowdcube investors.
In my book it is called value transfer and value dilution. BEWARE
The Cornish Mining conference delegates have been invited to see the BL/I pilot plant this afternoon.
This will arouse interest in the UK Lithium sector.
Represents another big chunk of UK demand for lithium and batteries following on from the JLR announcement.
Another reason to fund TVL.
i have to admit a **** up. it is emg (and ukib) that are new investors in cornish lithium not erm. there are no representatives of emg as far as i know at the conference.
BP You might be short/ not invested, just as the Australian strikers are pushing up the gas price.
HI LB
I am trying to go to a couple of meetings. Will take a few notes to share.
I see ERM (Investors in CL) are sending a couple of representatives- Simon Tillotson and Michael Cronwright - Might be interesting to hear their views on extracting lithium from brine.
For your TUN interest Adrian Bougourd from Lansdowne will be there, and Ex TUN James McFarlane too.
Maybe some people have got that news?
Dr Anomaly 30 Aug 2023 11:55
Frankly, this STINKS. This uses DA's voice or our recognition of it, without his permission.
It devalues the clear case we have for promoting DMG/PHE. Who will listen to PHE if you pull stunts like this?
If you wanted to promote the case using DA, you should have asked him first. Shame on you.
Your disclosure is totally inadequate. Many will not even see it.
It raises the question what other tricks will you try in your quest?
Fantastic news. Great to see all the images which bring home the huge effort that all are making to bring back South Crofty.
Thanks LB.
Sickening they did not make the offer to existing shareholders. Crowdcube could have helped them.
Too often at the moment we are seeing existing shareholders not being looked after equitably by the BoDs. There is a statutory duty of care which increasingly is being circumvented. Is the FCA asleep at the wheel?
Https://www.londonstockexchange.com/news-article/ALK/first-lithium-sulphate-plant-study/16095046
Great find bitcoinbuyer. "Would it want Redmoor Pay dirt... ?"
The answer is probably no, it would not want input from Redmoor. It is having difficulty getting the lorry movements it needs for its own cut-back production levels. If those lorry mvts were to massively increase it might be a different matter,but we have waited months to hear if TUN can operate at a very low level.
The market now knows what to expect from a financing if the government backed UK Infrastructure bank is involved. The kiss of death for shareholders.
The reaction so far today, CUSN off 5.4% and SML off 12.5%
This proposed deal (for Cornish Lithium NOT Cornish Metals) sets a very bad precedent for the involvement of the UK Infrastructure Bank with any of the mining companies in the South West. If the UKIB is going to behave like a vulture fund with taxpayer's cash, who will want to go to them for finance? Furthermore, as an arm of government , the UKIB should be helping with the political aim of leveling up, NOT arranging the transfer of value from SW pensioners to fund managers in London and the USA.
Price off here on consideration of the Sunday Times article?
PAWGEE
It is worth considering the impact of tranche 2 on existing holders as well as tranche 1. The options for tranche 2 mean the new investors will scoop the pool again if the company has huge success.
Existing shareholders should insist on the same financing offer being made to all investors at this stage. To do anything else is unfair and divides the cake very unevenly. My view is that ordinairies should be offered to all at whatever the clearing price is.