Member Info for Valuation-it-is

LB 10 May 14.06

Agree with you.

When you write "TM have definitely dug down the back of the sofa for this REE investment." Are you indicating that TM were already fully invested and short of spare cash when they funded RBW? If so, that would have implications for CL's fund raise..........

Because the existing shareholder would have the same percentage representation, and the same percentage share of the value of the enlarged company.

Discounted placings to new shareholders only, result in a transfer of value from existing shareholders to the new ones even if the total worth of the enterprise goes up. If original shareholders dont want to take part in rights issues - thats fine, but they then can sell the value of their rights in the market.

If the company were to offer placing shares to all its shareholders,i.e. a rights issue, then they would not be diluted and would capture not 5% upside but 110%. The extra work/cost of a rights issue for management is off-putting and if they have not bought shares like other shareholders, they are bound to care less. Voting away pre-emption rights is a dangerous business.

HMG and the civil service are a drag on the efforts to produce critical metals. Getting officials up to speed takes time/money and then they change personnel. Businesses then have to start all over again.

Regulations are necessary but delays caused by lack of regulatory officials with inadequate funding can be terminal or near terminal- TUN being an example.

HMG promotes its vision of resiliance, but offers little in the way of financial or other help to achieve it. Free trade policy with others who do not have an onerous regulatory regime also undermines the economics for UK based companies. In short UK businesses are battling with one hand tied behind their backs. HMG should be ashamed.

LB Perhaps JW to become an advisor to TM?

LB Got me interested.

A major player takes a stake at a 28% premium to the then market price and other investors can still buy at below the placing price! What am I missing? Does TechMet have pre-emption rights that others don't?

This graph posted by Simon Moores looks quite persuasive for commodity investments................

https://twitter.com/sdmoores/status/1655528245096243200/photo/1

Would be nice to bring it up to date.

This graph posted by Simon Moores looks quite persuasive for commodity investments................

https://twitter.com/sdmoores/status/1655528245096243200/photo/1

Would be nice to bring it up to date.

LB - good spot!

I think it is Simon Gardiner-Bond who represents Tech Met on the CL board.

https://techmet.com/simon-gardner-bond/

Are you thinking there may be another TechMet investment in the SW? There are some bargains about!

Mumbles2021 7.52 "why would any one put up 50% of the required funding without expecting at least 50% or more of the proceeds from a project."

The market driven answer:-Because the return being offered is very attractive without being as much as 50% of the proceeds.

The "fair" answer:- Those first in, who bore the greatest risks perhaps deserve a bigger proportionate share of the rewards.

Wolves Thu 23.48 "has the ability to reduce the dilution of shares"

How is that achieved? I was thinking that owning 100% of something requiring finance rather than 50%, is likely to result in more share issues not less.
More control is welcome, but if Peel with all their asset backing, find financing difficult, I would think we, with little in the way of assets, will find it even harder and expensive. I think we need a high publicity drive, then perhaps some crowdfunding and an offer to existing shareholders.

CUSN will be doing an investor roadshow 16th/17th May.

Does Lithium hydroxide travel well across oceans?

PHE should now do what it should have done when the share price was 10 times the current level. Raise the funding to get on with building the first DMG unit. It should prove the concept/IP and then get selling. Its put up or shut time.

TheGreekLizard "The project is probably now a salvage operation."

Would you put $10m of equity! into a salvage operation? No, if at all, you would put $10m into a secured CLN with extremely dilutive conversion terms.
Conclusion:- This is still a runner.

MO Today 00.14 "Those piles - mini mountains around St Austell are basically lithium mica waste from tin , tingsten snd copper mining ?"
The mini mountains - hundreds of millions of tonnes of waste product from china clay extraction. The mica in it has the lithium.
Hear what you say about Brine. CL is drilling now at Blackwater - so may soon have another brine source.

MO WEd 22.11

Interesting post. Who will win ? The holder of the cash, the holder of the raw resources, or the holder of the IP/sites knowing how to process the resources ? My guess is the holder of the resources. So I agree, ALK is perhaps a bid target.

Otherwise you posed the question "why not build a hydroxide plant in Oz ?"
Is it the case that Li hydroxide does not travel well, so needs to be utilised (for batteries) very near its production point? I think it may absorb water from the atmosphere so transporting the refined product across the oceans may not be a practical proposition. I wonder if they have tried vacuum packing? I guess this is the reason for final refining to EV standard in the UL at Wilton.

Most of the announcement relates to the considerable number of achievements over the last year. CUSN has been very successful in its exploration programme firming up resources and discovering a new area of mineralisation - the wide formation, which is sited conveniently for them and may add very considerably to the future mining potential.
Progress towards dewatering, is good and work on the feasibility study is underway. The company has the cash C$55.5m and the backing (VBR ) to take this all the way.
The £72m market cap, looks low for what is on offer.

Given the explosion in Li demand from the US, might TVL be squeezed out in Australia? That might make supply for TVL from UK sources even more attractive?

MO

I would not be surprised if car owners have to pay to get old batteries taken away! As a feedstaock they may be even more attractive than we think.