Member Info for Valuation-it-is

.675 is above the warrant price. Meaning around £2m to flow into the Angus coffers if exercised. Say again....

"The Saltfleetby Field is now operating safely and reliably at production levels significantly above our committed hedge volumes. We are looking at strong free cash flow generation going forwards, once the permanent flowline from the B7 well is installed. This will allow us to pay down debt and strengthen the company’s finances. Angus is now strongly leveraged to gas prices, so any uptick in gas price as we enter the Winter months will have a big impact. "

Take note:-

Key sentences......"The Saltfleetby Field is now operating safely and reliably at production levels significantly above our committed hedge volumes. We are looking at strong free cash flow generation going forwards, once the permanent flowline from the B7 well is installed. This will allow us to pay down debt and strengthen the company’s finances. Angus is now strongly leveraged to gas prices, so any uptick in gas price as we enter the Winter months will have a big impact. "

Https://www.bbc.co.uk/news/topics/cxwdwz5d8gxt

Helpful for debt negotiations perhaps .............................

LB Good morning

Re "The bit I can't fathom is 24 hours prior to the horror show RNS ("project update" 26th Aug I think) there was a positive linkedin post alluding to exciting developments being disclosed at mining 121 in November. "

Who made the linked in post? Was it a company post?

How long to pay down the debt at current gas prices? Not so long....

Https://www.bbc.co.uk/news/topics/cxwdwz5d8gxt

Hi MO

Good to hear from you. All fine here.

I am wondering if CL will go onto AIM or if it will be taken private. Recent deals have raised the bulk of the money from private equity Techmet/EMG and UKIB. If the second tranche of the third funding package happens, the rest could be bought out.

In their first funding package Techmet got board representation, warrants and a discount on their share purchase price. I think CL is "job done".

Hi LB and SP

I think the project referred to as "at least one in the UK" is one of Paul Atherly's. i.e. ALK or PRE.

His picture and comment is under the article you linked to.

Cornish Lithium is already in the bag. Techmet -funded by the US Government -already have "a Right of First Offer to market lithium products from the Company’s projects" as a result of the first £9m of funding they provided to Cornish Lithium, in its first discount-priced deal. After Techmet's second £9m funding , it was probably Techmet who brought in a US private equity firm (and the UKIB) for the third funding round, which again excluded other existing shareholders.

Good afternoon LB

I think it refers to Techmet - which has invested three times in CL in which CUSN is invested. Techmet is funded in part by the US Government through the US International Development Finance Corporation, a US Government funding agency.

I think the UK project referred to may be either Pensana Rare Earths (PRE) or Alkemy's (ALK) venture through its subsidiary Tees Valley Lithium.

What interests me is how long it is going to take for Biden to recognise the UK as a trading partner for the purposes of the IRA (Inflation Reduction Act). Much was made of this recognition but nothing has been announced since Sunak's visit. The US seems able to invest in (at very advantageous prices) shares in the UK's critical minerals producers, but without making the benefits of the IRA available to the UK. One benefit that accrues to these financing deals is the ability to market the product. i.e. It seems not only do they buy shares on the cheap, (and in CL's case likely transferred a lot of value from existing shareholders to Techmet and its partners) but they also obtained control over the distribution of the product. See the first Techmet deal with CL in November 2021 as an example. I quote "TechMet shall have a Right of First Offer to market lithium products from the Company’s projects" .

Interesting that this announcement is no longer on the news and announcements section of the Cornish Lithium website.

Wake up HMG! Wake up small shareholders. The resource curse has returned.

Thanks for re-posting the article TF

One thing that struck me was "One leading start-up is the British firm Nexeon, a spin-out from Imperial College, London. It is building a commercial-scale plant in Korea to supply batteries for Panasonic"

Given HMG have an Automotive Transformation fund, why has Nexeon gone to Korea?

Https://www.telegraph.co.uk/business/2023/10/10/world-ev-battery-revolution-through-eyes-goldman-sachs/

Good evening MO

I see that Oz's richest person is taking on Albermerle, in a battle for assets.

Did you see that Cornish Tin ltd has discovered significant Lithium in their last drilling programme? https://www.cornishtin.uk/

Https://www.telegraph.co.uk/business/2023/10/10/largest-wind-farm-world-start-supply-electricity-britain/

Batteries needed!

There may be a delayed reaction.

Lot of info added to Cornish Tin Ltd website. Some info useful for Redmoor comparison purposes

https://www.cornishtin.uk/

Pawgee "Does anyone know why the copper potential at United Downs does not feature in the overall CUSN MRE picture? "

A "resource" estimate involves proving the resource is there. A "reserve" not only proves its there but also proves its economic status or viability.

To prove the resource a lot of drilling is required and that is expensive to do. CUSN is focussing its efforts and capital on its most likely to be viable project South Crofty. However, UD may be next , the Wide Formation and then Dolcoath, Gwinear etc. The encouraging thing is that CUSN has so many possibilities to follow up. The graphic on the RHS of page 15 of the company presentation gives an idea of what may come about.

https://cornishmetals.com/site/assets/files/4930/cusn_october_2023_corp_ppt.pdf

The dot at 5.6m tonnes is the current resource and moves to the right will be achieved if more drilling exploration is successful.

Hannam and partners in their 30.6p valuation of the shares are only taking in 70% of the NPV of SC, and a small $35m sum for UD. Other rights areas do not seem to feature at all. With this low level of inclusion of CUSN assets the Hannam & Partners' valuation still offers huge upside potential from the current level of 11p.

Good afternoon LB

Tomra sorters were not envisaged when the PEA was written.

So the ability to sort out waste and not present so much ore for processing helps to massively reduce processing costs. Also, up front capex costs will be lower as less plant will be needed. Perhaps a smaller shed. So the financing requirment for the whole project will be reduced.

And finance is probably the key hurdle. So if less finance is needed and the returns are much higher, financing will hopefully be a lot easier. All of which affects the share price as that reflects project NPV times a factor for the likelihood of the project happening at all.

The chances of VBR exercising their warrants at 27p per ordinary share have just improved.

I think that future announcements may also be helpful. The exploration drilling programme will hopefully bring good news and increase resources, extend mine life and possibly enable increased throughput, all of which will again increase the NPV, and make finance provision attractive to investors

Https://cornishmetals.com/site/assets/files/4930/cusn_october_2023_corp_ppt.pdf

Thanks to Bitcoinbuyer over on SML

Https://news.google.com/articles/CBMibmh0dHBzOi8vb2lscHJpY2UuY29tL01ldGFscy9Db21tb2RpdGllcy9Db3JuaXNoLU1ldGFscy1BaW1zLVRvLU1ha2UtRXVyb3BlLUEtS2V5LVBsYXllci1Jbi1UaW4tUHJvZHVjdGlvbi5odG1s0gFyaHR0cHM6Ly9vaWxwcmljZS5jb20vTWV0YWxzL0NvbW1vZGl0aWVzL0Nvcm5pc2gtTWV0YWxzLUFpbXMtVG8tTWFrZS1FdXJvcGUtQS1LZXktUGxheWVyLUluLVRpbi1Qcm9kdWN0aW9uLmFtcC5odG1s?hl=en-GB&gl=GB&ceid=GB%3Aen

I like the sound of :- "He declined to give details about the companies involved but said at least one of the projects is in Britain."

But HMG in the UK needs to wake up.

26 months and counting waiting for permission to operate the plant/ mine Tungsten at Hemerdon.

£7m and considerable delay before water in South Crofty is clean enough to pump out to sea,

And when HMG's cavalry does arrive in the shape and form of the UKIB for Cornish Lithium, original loyal investors are heavily diluted.

All this from a Conservative Government which is supposed to be encouraging investment in production of critical metals and encouraging our resilience.

Sunak needs to give the situation his attention.