Member Info for Valuation-it-is

"The Project will assess the potential to produce lithium from waste material produced from both current and historic kaolin operations"

In other words, they may use the "Cornish alps" as a source. No need for mining or crushing, its already there piled up waiting to be processed! Fantastic news if it comes off.

Not got a subscription to WP, any chance of a cut and paste?

Dumbpunter. CUSN's interest in CL is as follows:-
Cornish Metals exposure to Cornish Lithium
The Cornish Metals Pre IPO presentation states:-
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Lithium exposure through Cornish Lithium
Cornish Lithium has the right to explore Cornish Metals’ mineral right areas for lithium-in-brine & geothermal energy. Cornish Metals has a 25% free carried interest on the first project advanced to completion of a Bankable Feasibility Study within its mineral right areas, and a 10% free carried interest on all subsequent projects advanced to completion of a Bankable Feasibility Study.
Cornish Metals will receive a 2% Gross Revenue Royalty on all metals produced from brines or geothermal energy produced from within its mineral right areas.
From January 2017, Cornish Metals benefits from annual cash / share issuances from Cornish Lithium of US$50K per year in years 1-5, US$100K per year in years 5 –10, US$500K per year from year 10, and US$1,000K per year from year 15.
Refer to Company news release dated January 19, 2017 for further info.
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So for the announcement to relate to CUSN, the lithium extraction would have to be from CUSN's mineral rights area.
Otherwise CUSN may or may not have shares in CL dependent on whether the annual fees have been or will be paid in shares or cash.
If CL has been paying in shares, CUSN will have found the CL share price since the last issue has nearly doubled so would have done well from its investment.

Hi Bubble
Hope you had a good w/e.
The company has been talking to a number of potential customers for its future tin and copper production, hoping to conclude off-take agreements. From the customers' perspective they get some guarantee of supply, and perhaps a guaranteed price, in exchange for up front payment which would be used to get the mine (s) back into production.
Clearly the customers would have to be big users of copper /tin to make a difference, or perhaps the customer could be another producer of copper, tin, etc, who wants to boost their future supplying potential.

CORNISH LITHIUM ANNOUNCES THE CO-PRODUCTION OF LITHIUM AND KAOLIN IN CORNWALL PROJECT IN ASSOCIATION WITH IMERYS AND HSSMI
AND
FUNDING FROM INNOVATE UK

Cornish Lithium Ltd (“the Company” or “Cornish Lithium”), the mineral exploration and development company based in Cornwall, UK, is delighted to announce the formation of a consortium involving Cornish Lithium, Imerys Minerals Limited (“Imerys”) and sustainable manufacturing innovation consultancy, HSSMI to assess the potential for Co-production of Lithium and China Clay (“Kaolin”) in Cornwall (the “CLiCCC Project” or “the Project”). The Project will assess the potential to produce lithium from waste material produced from both current and historic kaolin operations. Cornish Lithium will be the lead partner for the £1 million CLiCCC Project, which will benefit from Innovate UK’s funding.

The CLiCCC Project consortium aims to evaluate the economic viability of extracting lithium from minerals that occur in the same rock as kaolin. This could increase the resource efficiency of the mined rock, with the double benefit of making the Cornish kaolin industry even more competitive in international markets, as well as contributing to securing a domestic supply of lithium that is vital to the UK’s transition to renewable energy and a zero-carbon economy.

The fact that the British automotive industry will switch to electric vehicle production from 2030 will necessitate the construction of battery factories in the UK and the development of associated raw material supply chains, including the manufacture of lithium battery chemicals.

Kaolin was first discovered in Cornwall in 1746. Since then, Imerys developed to become one of the world’s largest producers of kaolin. Today, Imerys employs more than 750 people in mid-Cornwall, 1100 people in the United Kingdom and contributes over £220 million sales per year to the British economy. Imerys supplies, from its Cornish mining and industrial footprint, a large number of growing applications worldwide such as paints, coatings, plastics, ceramics, rubber, pharmaceuticals or cosmetics.

Kaolin in Cornwall is largely sourced from decomposed granite, a rock that has also been shown to contain lithium minerals in the form of lithium mica. The lithium potential of the kaolin region in Cornwall was outlined in a British Geological Survey report of 1987, but at that time there was no economic imperative for such a source to be commercially exploited.

Jeremy Wrathall, Founder and CEO of Cornish Lithium, said: “Having identified the opportunity for the Co-production of lithium and kaolin, Cornish Lithium is ideally placed to evaluate the opportunity to build a lithium raw material supply chain in Cornwall. We look forward to collaborating with Imerys and HSSMI on this exciting project. The Project enables us to collaborate with Imerys and we look forward to benefiting from HSSMI’s expertise in the circular economy. This £1 million project, funded by a grant from Innovate UK, demonstrates the strategic importance of the CLiCCC Project to the UK economy as we seek to establish a robust, domestic source of lithium to support the UK’s energy transition.”

Steve Double, MP for St Austell and Newquay, said: “The award of funding to Cornish Lithium, Imerys and HSSMI from Innovate UK for the Co-production of Lithium and China Clay in Cornwall Project is great news. Seeing our kaolin industry opening up to the new and emerging lithium extraction business will create new hi-tech and well-paid jobs, and drive economic growth for Cornwall for our and future generations. This is a huge opportunity for Cornwall and I am delighted to see it recognised and allowed to grow with this funding award.”

Ashley Shopland, Imerys Minerals Limited Board Director, said: “Imerys is pleased to work with the CLiCCC partners on this exciting project to evaluate the possibility of building a new, strategically important, project for the UK economy.”

Savina Venkova, Circular Economy Manager at HSSMI, said: “HSSMI is looking forward to working with Cornish Lithium and Imerys on the CLiCCC Project. For the future of electrification, it is vital to explore how the UK could gain access to lithium deposits. Our expertise in working across industries, including the electric vehicle recycling and manufacturing industries, to help companies maximise the opportunities offered by the circular economy will be extremely beneficial to the Project team.”

About Cornish Lithium

Cornish Lithium is a highly innovative mineral exploration and development company focused on the environmentally-sustainable extraction of lithium from geothermal waters and hard rock in the historic mining district of Cornwall, UK. The Company has secured agreements with owners of mineral rights over a large area of the County and is using modern technology to re-evaluate the region’s potential for low carbon extraction of lithium and other vital technology metals such as tin, copper and cobalt. A secure domestic supply of such metals is considered vital to the industrial strategy of the UK as it moves towards the production of electric vehicles and a net zero carbon future.

About Imerys

The world leader in mineral-based specialty solutions for industry, with €3.8 billion revenue and 16,400 employees in 2020, Imerys delivers high value-added, functional solutions to a diversified set of industrial sectors, from mobile energy to consumer goods. The Group draws on its knowledge of applications, technological expertise and its material science know-how to deliver solutions based on mining and beneficiation of its mineral resources, synthetic minerals and formulations. These contribute essential properties to customers’ products and performance, including conductivity, refractoriness, hardness, opacity, durability, purity, lightness, filtration, absorption and repellency. Imerys is determined to develop responsibly, in particular by fostering the emergence of environmentally-friendly products and processes.

About HSSMI

HSSMI is a sustainable manufacturing innovation consultancy that works with companies to support them in responding to market challenges by increasing productivity, transitioning towards a circular economy, and upscaling their products and processes. Since its foundation in 2012, HSSMI has worked with government bodies, established manufacturers and aspiring start-ups. HSSMI’s areas of expertise include manufacturing strategy, digital manufacturing tools, circular economy, lean manufacturing and automation, hydrogen propulsion, advanced manufacturing simulation, E-drives, battery technology, and project management.

Scratch49
Agree with you about Mr Williams. Looking through the info on the BoD, they seem to be a bunch of high achievers.
I guess that SC will be a new challenge for them, but from what they say, they seem up for it, and determined to re-open SC, which for many shareholders, myself included, is a major motivation in giving support to the company.

I think the share price will reflect the assessment and discounting of future activity increasingly well as time goes by. I anticipate the difference between the share price and probability adjusted, discounted NPV will narrow as more people become aware of the story. So I don't think you will have two years to wait. There are so many ways the value here can rise sharply. vis:-
1. South Crofty getting funded - perhaps by off take agreements - (BoD currently in talks)
2. United Downs drilling confiming a viable or much better lode ( first results in the next few weeks)
3. CUSN's interest in Cornish Lithium crystallizing on their flotation next year
4. Further prospects opening up in the resources in the 30,000+ acres of mineral rights ( drilling in prospect)
5. The tin and copper prices continuing upwards - (daily feedback from the market)
6. Canadian resources coming into the valuation picture
7. Predator interest. - I would hate to see this company taken over at double or treble the current share price as, in my view there is much more upside than that if shareholders stick with it.
In my view, the last 4 months are a pretty good indicator of the outlook

Given the SC resources are up significantly, 16p is the new 8p! Plenty more upside to go.................and plenty of news to come shortly.

Grizzle1
Thanks for re-posting the calculations on the Canadian board.
One bit of feedback was "I appreciate the overall point of their exercise, but lifting the NPV by 86% - due to the 86% rise in tonnage - is a fail, start again. "
I appreciate this is a rudimentary approach, and the extra tonnage may not have a pro-rata effect on the NPV, but in the absence of more info, it seems like a reasonable approach. It may be that economies of scale come into the picture and that 86% more tonnage means more than 86% extra profit - but who knows? Clearly it would not decrease the NPV as if it did it could be left in the ground.
Perhaps @Loretta would give her evaluation of the situation - would you ask?

For anyone who missed it, and want to watch, it is available on :-

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

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

Hi Grizzle1.

I do follow what is written on the Canadian board but am not registered. So if you think it is worthwhile please feel free to post it. Are there too many words?
Best wishes

Vii

From the Times article:-
"Cornish Metals issued an updated mineral resource estimate for part of its South Crofty tin mine yesterday, which the chief executive said showed an increase from about 45,000 tonnes of tin to about 65,000 tonnes. "

At a price of $ 31,445 per tonne, 65,0000 tonnes of tin is currently worth $2.04bn. We also know that :-
"The major lode structures that comprise the Mineral Resource remain open along strike and to depth.""
This means the end of the lode has not been determined - which in laymen terms indicates an upside to the published official resource.. The estimate covers only the area drilled. So the value of tin at SC is at least $2.04bn.

What about the cost of getting it out of the ground and smelting?

The PEA can help us there. After allowing for extraction costs, and taxation the PEA gave an Net present value of $130.5m at a tin price of $10/lb. The price now is around 44% higher. The sensitivity analysis on page 171 of the PEA, indicates a $1 increase in the price of tin adds around $57.6 m (188.1-130.5) to the NPV. So a $4.4 increase. might add $4.4x 57.6=$253.44m
giving us $383.94m. ( On the basis of mining 2575k tonnes of ore. )
However on Wednesday the company updated its resource estimate for SC and the tonnage indicated and inferred for the upper and lower mines rose to 4791k tonnes. It may be reasonable therefore to upgrade the NPV by a factor of 4791/2575 or 86% from $383.94 to $714m.

Even if the company has to part with a significant percentage of this value to provide funding, clearly there is highly likely to be huge upside to the value of the company currently £45m ( $64m ) at 17.05p.

I have not even considered the potential value from the exploration at United Downs, or the 30,000+ acres of mineral rights, the value of the interest in Cornish Lithium, or the Canadian resources.................................

I think we are set for a huge re-rating. Any contrary views?

From comments Mr Williams has made recently, CUSN is looking to raise funding from off-take agreements, i.e. future customers. See posts about Daily Mail article yesterday.

Crocqman
I was thinking of asking you what you thought, but you beat me to it. Thanks.
Vii

https://www.express.co.uk/finance/city/1448124/car-tyres-recycled-plastic-environmentally-friendly

Good to chat Bubble....
If it is a trade the reporting of which has been delayed to after close, it is likely to have taken place around 12.30, which is when the price passed through that level. (see https://www.hl.co.uk/shares/shares-search-results/c/cornish-metals-inc-npv/share-charts) look at the day chart. Given the price jumped from 15.70 to 15.90 at that time I guess it was a big buy order going through. By reporting it late, if that is indeed the case, after the spread has moved up, so the price of the trade is well below the spread, and is shown as a sell. If I am wrong, and it was a late trade, it would be surprising to see it completed so far below the spread as the MMs would probably have welcomed the stock having had so much buying through the day.
So my money is on a delayed reporting of a buy at around 12.35pm.

The company is exploring the possibility of offering offtake agreements to raise funding. i.e. giving guarantees of future deliveries of tin in exchange for cash for SC development up front. If they do this it would reduce the need for bank sourced project finance or more equity. It is encouraging to see them keep a tight control over any equity issue and to try to avoid that if possible. Offtake agreements might appeal to companies wishing to fix the price for future deliveries now, or at least guarantee some future delivery at the then prevailing market price.