Member Info for Valuation-it-is

Fira2011
They have 2 offtake agreements for Tungsten, 1 for tin and 1 for the aggregate.
Global Tungsten Powders and Wolfram Bergbeau und Hutten, for a total 2300tpa WO3, 100% of the tin produced with Vanomet (Afrimet) and GRS roadstone for aggregate:-

If this BoD cannot do it, then someone else will.

There will not be enough tin to satisfy demand. And more importantly-
MT at TUN says demand for tungsten is growing at 2.5% per annum, and TUN will only add 4% to supply. .......

https://www.fastmarkets.com/article/3980333/interview-operators-to-bring-uks-hemerdon-tin-tungsten-mine-to-production-early-in-2022-set-sights

https://www.metal.com/Tungsten-Cobalt-Antimony/201308090019

Any views as to how long the supply squeeze will last?

BombaySapphire
Comparables Big - Antofagasta, Boliden, Trevali
Small Breedon Aggregtes, Atalaya.

A further point is that this share is likely to re-rate from a development rating to a producer rating. The large discount to the NAV that the current share price reflects will gradually diminish as we approach production in about 9-12 months time.

Presumably the FDC report was written before the amount to be raised from shareholders was known. If so, a further factor to consider is the reduction in financial risk due to more equity being raised i.e £39m rather than the £20m-£25m sought.
Not only does that give the company an extra cushion to cope with unforseen events, it may mean less debt is drawn down and therefore lower interest costs.
TUN looks as if it will be a big cash generator. I suspect once Hemerdon is up and running satisfactorily, we will see the company look for and find attractive acquisitions.
This is a great addition to the growing number of exciting mining companies in the SW.

Thanks for your observations CK.

Would large load customers want intermittent supplies? i.e. when the sun shines or wind blows.
Perhaps they could take more at overload times, but given the capital invested in their businesses I would have thought it unlikely that they could stand idle until power costs were low. Perhaps, as you say, if surpluses could be stored to even out their release it might work, but the cost of storage might nullify any savings of using the excess power.

https://www.proactiveinvestors.co.uk/companies/news/963744/trafigura-withdraws-significant-amount-of-lme-s-physical-copper-stocks---report-963744.html

Thanks Major Oak for your thoughts.
We heard that there are something like 76 brine extraction businesses trying to prove their processes. CL is going to buy in the best process sytem and use it. They have narrowed that field of 76 down to 24 and then run tests and have further narrowed their potential partners to 2 or 3. Geolithe SAS from France has performed very well as has Precision Periodic from Orlando Florida, G4E from New Zealand are also in the running. Names may be slightly wrong as I noted how the names sounded.
CL have been able to extract down to 5 ppm Li. The kit will be very cheap to build. So little capital employed for DLE from Brine.
CL expect to be producing around 11,000 tonnes of Lithium ( I assume carbonate) in 2025. The majority of that will be from Trelavour from rock or mine waste. DLE from Brine will ramp up from about 500 tonnes from that date.

British Lithium seem to be more advanced in their development. They have not gone down the route of looking at all the processes that are available on the world market but have developed their own. They already have a pilot plant up and running and have patented 3 processes of their own with more to come. They seem to have a good knowledge not just of the process but the way to scale up. My understanding is that they expect to be producing 20,000 tonnes per annum around the same time.
Andrew Smith (BL) talked about Cornwall having a huge green energy advantage, as did CUSN. There are lots of panels on solar farms and turbines down here, but the cable to take it away is low capacity so a lot of the time it cannot be used and presumably the turbine owners have to be paid NOT to produce electricity. I sense a deal there for our companies and possibly a smelter.
My hope is the HMG provide finance in exchange for golden shares in these companies, to provide secure supply for the UK.
Given what is at stake - the car industry and more, some 800,000jobs, I cannot see the HMG allowing the companies, materials or know how falling into foreign hands. BP, Shell bids - that might be allowed, but even then I suspect assurances would have to be give about supplying UK manufacturers.
The map I mentioned in an earlier post showed the European sites for 26 gigafactories. for Li battery production. Each of those likely to cost £1bn or multiples of that. Imagine the raw material that is going to have to be input to justify that investment....... It is billions of value of Lithium every year.
The story for tin and copper is also very good, so CUSN thro' SC, UD etc etc has many ways to explode in value.
On finance by the way ECGD guarantees look to be on the cards. If so, project finance at 5% is therefore a possibility.
Things may happen much quicker than we normally expect, such is the urgency and pressure to protect national interests.

Re point 1 on 18.55 original post. I was struck yesterday when someone- probably Darryn Quayle- displayed a map of Europe showing where all the giga factories ( for EV batteries) are going to be built. The comment was that at present there is no lithium supply for them. Whether that refrerred only to European supply I do not know, but the point was that Lithium production needs to explode to keep up. And at present Li production is a huge consumer of energy and is very pollutive. This means there is huge pressure on CL and British Lithium to produce Lithium as fast as possible with the UK Government very firmly backing the effort.

Thanks CK. Follow up produced this report. 20 years old but gives an idea of the cost of set up. Interesting to see it was signed off by a Mark Thompson.............................
https://geoscience.nt.gov.au/gemis/ntgsjspui/bitstream/1/82865/6/CR20020078_06_Ausmelt~Prefeasibility~Study~Report.pdf

Nuthazard
"Howard White "PHE is the only solution to dealing with mixed waste plastic." "

Does PHE own a patent over the process or part of the process?

Lupidog
Great reply to my question. I also do not like boards where negative commentators are dissuaded from putting their views forward. Indeed with one such board I fell into that category so quite understand.
It seems that some wish to campaign for a change of BoD which is fair enough. But surely a better way is to get organised, get shareholders holding 5% of the shares together and put a resolution forward for all shareholders to consider and then vote for? If the vote wins then you will be saved from continuously posting warnings to others, if it fails, then perhaps we all should move on? One thing to consider - Have any of the board members put their own money into the shares? Have they earned their shares through the time they have put in?
Another way forward would be to turn up to the AGM and express your frustrations directly and see if that elicits an apology or any other form of acceptable response.
I do sympathise that if it is difficult to find positive news, it is difficult to have a positive dialogue on this discussion board, but clearly doing something about it would be preferable.

Bubble
Smelter near the mines, and battery factory near the car plants, is my guess.

Anyone know a link to smelter designs?

https://www.express.co.uk/finance/city/1508536/copper-market-news-price-collapse-london-metal-exchange-emergency

page 153 bullet point 4:-

Become a leader in zero-emission flight, kick-starting commercialisation of UK
sustainable aviation fuels (SAF), and developing a UK SAF mandate, to enable the
delivery of 10% SAF by 2030, and we will be supporting UK industry with a £180m
funding to support the development of SAF plants.

I guess - but don't know - that only the manufacturer of the bottle will know how much recycled plastic is in the bottle and perhaps therefore whether or not it can be re-cycled again. If so, it will become necessary for the manufacturer to mark the bottle so that an automated system can pick out the bottle and send it to PHE for gasification.

CK I did not hear any timescales on Carnkie, but I did hear there is going to be another public consultation early November at Twelveheads. I hadn't picked this up before. Must be worth a visit!. I think it might be the 2nd of Nov, but do confirm with the company well beforehand if you intend to look in as it may be the 4th. Apologies, lots to take in / remember today.

Here is bullet point 6 of p 152 of the Net Zero doc. published today, which if seen through, will have major implications for the Cornish Miners and their production.....
===> Build a globally competitive zero emission vehicle supply chain and ensure our
automotive sector is at the forefront of the transition to net zero.

"46. Complementing these measures, the
introduction of the plastic packaging tax
from April 2022 will encourage greater use
of recycled plastic in plastic packaging,
instead of new (virgin) plastic. The tax will
be charged at £200 per tonne and be paid
by manufacturers and importers of plastic
packaging that contains less than 30%
recycled plastic. It is estimated that this will
lead to an increase in the use of recycled
plastic by 40% in 2022-23, equal to carbon
savings of nearly 200,000 tonnes of CO2
emissions. The government will also review
aspects of the Landfill Tax in England and
Northern Ireland in due course, as announced
in Spring 2021. This will ensure the tax
continues to support the government’s
ambitious environmental objectives."