Member Info for Valuation-it-is

Dr A
That is precisely the concern I have. A quick look back at history may help. By giving W2T a UK exclusive, did not PHE have to buy them out later to satisfy its major hope - Peel, and dilute existing shareholders? What did we receive and what did we pay out on that caper? Are we not on the same merry go round again? Give HUI a licence or whatever, rather than getting building marketing/sales ourselves, then end up having to pay multiples of what we received to get back control. Perhaps it is worth it, perhaps not. I have not met Mr White so am not in a position to assess his motivations. As ever caution is my watchword.
PHE has the ability to employ people just like HUI. In fact PHE already has access to capital through its listing. HUI has not listed yet I think, so why two sets of expensive listings just to develop and market one brilliant idea?

Shatner.
It does seem as if the "movers and shakers " for PHE's DMG reside in HUI rather than PHE.
I don't think HUI is going to be London listed though. Might have to put up with that I suppose.

Careful Bunny
Agreed. Non exclusivity is indeed a positive for PHE.

Dr A By "sub contracting" the sales of DMG to HUI, is there not a risk that PHE will not get the feedback from a number of users? If Hui gets this valuable information flow rather than PHE, further development by PHE rather than HUI may be impeded.
Much better to have sales control/customer liason/satisfaction all under one roof...............helps the tech development.

Rebarm "The UK with Peel? A testbed and showcase!!"
Not yet- by at least 12 months
The test bed is with the University of Chester.
The showcase is nowhere near available coming up to COP26 despite a significant capital raise and x years of waiting.

No this approach has been a dismal failure. COP26 was a huge opportunity. PHE could have raised capital to build the FOAK and done it on its own, and made it pay. Instead it went up a dead end, waiting for Peel capital to flow. It missed its big chance. It lost its leader D R, and is now rudderless and led by events rather than its own agenda.
However, I am still in, hoping that a new CEO will take a firm grip of what is a huge opportunity.

Ganfeng Lithium has told customers it is raising prices for lithium metal products by 100,000 yuan ($15,500) per tonne for the next month, partly because of higher production costs amid China’s power supply shortages.........................................
Source:-
https://www.mining.com/web/ganfeng-raises-lithium-metal-prices-amid-power-crunch/?utm_source=H%26P+Master+Contact+List+%28Sements+and+Tags%29&utm_campaign=edf88329f3-EMAIL_CAMPAIGN_2018_10_05_07_47_COPY_01&utm_medium=email&utm_term=0_dd4f91613c-edf88329f3-577602706

DR A Thanks for your considered reply.
I think the smaller PHE's role in this, the smaller the return will be to PHE shareholders. Perhaps it is akin to the old question, Would you rather have a 20% return on a £100 investment or a 18% return on a £200 investment.
If one only has £100, then the answer is clear, but if one has £200 it depends on what other investments one has available.
I see PHE as a £200 investment if it does the selling and developing of its own technology, Perhaps you see PHE as the £100 investment just developing technology.
Given PHE has a most compelling investment case, I don't see that capital would be restricted to such an extent that it could not undertake the fullest role possible.
Losing control of parts of the business i.e. construction of DMG's, (and now selling of DMGs) has not worked well for us so far. We have lost at least a year at the hands of Peel. I am perhaps less confident than you as to how well further loss of control will work in the future.

Dr A 9.25am
I am startled by your acceptance of the situation. In my investment dreams, I have PHE running rampant across the world selling DMG units. IT is PHE who owns the IP and PHE shareholders who should benefit from that. It is PHE shareholders who have invested millions in that hope. I don't want to have to buy a second lot of shares to see the benefits of my investment. We need to have the HUI type people in PHE.
In order to get that we may end up having to buy HUI, just as we had to buy in W2T.

PHE seems to have moved from the beneficial owner of DMG technology which it could set up and sell, to being just a seller of the technology. Now it seems it is even handing over the role of selling its technology to HUI and concentrating on technology development.
By what logic is it better for shareholders to gradually accept a reduced role for their company and let others come in to benefit?

Prop

It is clear what Hursty's purpose is. Unfortunately his negative posts are not very useful as they do not give a reasonable "other side" of the argument. Filter on

How do you explain Tungsten West raising £75m then?
With commodity prices going through the roof, and QE money sloshing around the system looking for a home, one doesn't need a global bank for SML level finance....................
Our BoD have an opportunity - if they have the ability to grasp it.

"Heathrow airport has called on the government to mandate the use of sustainable aviation fuels (SAF) to help lower carbon emissions amid growing pressure from climate groups.

In a statement this morning, the airport said it's also looking at other policies that would scale up production of sustainable fuels in the UK, including a price support mechanism and loan guarantees.

John Holland-Kaye, Heathrow chief executive, said: “We should aim for 2019 to have been the peak year for fossil-fuel use in global aviation.”

The demand comes as debate intensifies over how to tackle the challenge of lowering air travel’s carbon footprint – and who pays for it. Last week, the airline industry’s main lobby group adopted a target of eliminating carbon emissions on a net basis by 2050.

Increasingly, the industry has rallied around SAFs – which the latest jets can easily accommodate – as one way to cut back on the use of conventional fuel. However, it is expensive and still produced in only limited amounts.

Mr Holland-Kaye called on the UK to set an example as it hosts the coming COP26 climate conference at the end of this month, and said an acceleration of SAF use “will protect the benefits of flying for future generations.”"

The blue-chip index is now trading 0.3pc higher at 7,118 points, largely thanks to gains for major mining and energy stocks.
Anglo American is leading the risers with gains of almost 5pc, while Rio Tinto, Antofagasta and Glencore are all up more than 3pc. BP and Shell are also providing strong momentum.

https://uk.investing.com/commodities/tin-streaming-chart

See
https://www.investegate.co.uk/ArticlePrint.aspx?id=202110110700105802O

This is good news for all the mining companies in the SW. It shows that the company was able to raise more than it had aimed for. It will help to bring the spotlight onto CUSN and SML too.

I think the previous owners (Wolf?) had spent £170m on top of what had been spent by their predecessors. MT knows what went wrong and how to put it right though.

Full announcement:-
https://www.investegate.co.uk/ArticlePrint.aspx?id=202110110700105802O

Tungsten West Plc("Tungsten West", the "Company" or the "Group")Announcement of Intention to Float on AIM and Proposed Fundraising to Raise £39m
Tungsten West, the mining Company focussed on recommencing production at the Hemerdon tungsten and tin mine ("Hemerdon" or the "Project")in Devon, England,today announces its intention to proceed with an initial public offering, comprising an institutional placing and subscription (the "IPO" or the "Offer"). The Company has conditionally raised £39 million before expenses from the Offer of 65,000,000 new ordinary shares of £0.01 each in the capital of the Company ("Ordinary Shares") atan Offer price of £0.60 pence per share and has applied for admission of its Ordinary Shares to trading on the AIM market of the London Stock Exchange("Admission").
Admission is expected to occur at 8.00 a.m. on 21 October 2021 with a market capitalisation of approximately £106.2 million.
Key Highlights·
The Offer price has been set at £0.60 pence per Ordinary Share, equating to a market capitalisation of approximately £106.2 million on Admission. The Offer comprises 65,000,000 new Ordinary Shares, representing approximately 36.7 per cent. of the issued share capital of the Company on Admission.·The net proceeds of the Offer, together with the $49.0 (£36) million project financing (exclusive of £4.2 million of equity contributed to the Offer) from a fund managed by Orion Resource Partners ("Orion"), will be used by the Company as follows:
o to execute the planned capital expenditure and corporate commitments of £44.6 million for improvement works at the Hemerdon Mine;
o to bring the Hemerdon Mine back into commercial production;
o for general corporate overheads, including marketing and business development, other planned capital expenditure and for general working capital purposes (approximately £12 million); and
o to settle Admission and Offer-related fees and expenses (approximately £3.1 million).
·The Directors believe that the Offer and Admission will raise the profile of the business and its products and provide a supportive platform on which to grow the business further through in-licensing of additional technologies or selective acquisition as appropriate.

The £20m-£25m was the equity component alone. Equity raised is stated as £39m.................

Fantastic news. TW have raised a lot more than they were aiming for, which was £20m-£25m, which leaves them with a large contingency fund and a much less risky outlook.
It is under 20 miles from Redmoor to Hemerdon. The implications are extremely positive for SML..................
And for the sector. As funding, surplus to that sought, is raised, it shows there is considerable investor appetite to bring these mines back into production.
The announcement can be viewed here:-
https://newsnreleases.com/2021/10/11/tungsten-west-announces-39-million-ipo-on-lse/
The TW website is
https://www.tungstenwest.com/

Fira
I am expecting news about TW next week. Fingers crossed. If positive, I think it could light a blue touchpaper .
MT is no fool and ambitious. I suspect the positives will read across.