Member Info for Valuation-it-is

MO - our time is coming..............................
Not sure it is the first country to do so, but Canada has put it head above the parapet and told the Chinese to divest from 3 lithium companies. One can only imagine what China's reaction will be.
Source Bloomberg:-
Canada’s government ordered three Chinese firms to divest from a trio of small lithium miners based in the country, days after introducing tougher rules on foreign investments in the nation’s critical minerals sectors.
Sinomine (Hong Kong) Rare Metals Resources Co. Ltd. is required to divest in Vancouver-based Power Metals Corp., while Chengze Lithium International Ltd. must exit from Calgary-based Lithium Chile Inc. and Zangge Mining Investment (Chengdu) Co. Ltd., was ordered to divest from Ultra Lithium Inc., based in Vancouver, Canada’s federal government said Wednesday in a statement.
If China cuts up rough, the West may have to accelerate its investment in EV metals and rare earths very rapidly. This appears to make Government help in bringing forward production and processing more likely.

Major Oak - our time is coming..............................
Not sure it is the first country to do so, but Canada has put it head above the parapet and told the Chinese to divest from 3 lithium companies. One can only imagine what China's reaction will be.
Source Bloomberg:-
"Canada’s government ordered three Chinese firms to divest from a trio of small lithium miners based in the country, days after introducing tougher rules on foreign investments in the nation’s critical minerals sectors.
Sinomine (Hong Kong) Rare Metals Resources Co. Ltd. is required to divest in Vancouver-based Power Metals Corp., while Chengze Lithium International Ltd. must exit from Calgary-based Lithium Chile Inc. and Zangge Mining Investment (Chengdu) Co. Ltd., was ordered to divest from Ultra Lithium Inc., based in Vancouver, Canada’s federal government said Wednesday in a statement."

If China cuts up rough, the West may have to accelerate its investment in EV metals and rare earths very rapidly. This appears to make Government help in bringing forward production and processing more likely.

Boom.boom
If SFB is worth 2.5 FD on historic gas prices, and gas prices have gone up four times, then I think it would be an underestimate to say it would be worth 10 FD now. Why? Because the valuation of 2.5 is after costs have been taken into account. It might have been for example 4.0 before costs. So with 4 times higher gas prices the 4 would become 16 before costs, then deducting costs of 1.5 would make it 14.5. Costs have gone up, perhaps by a third, to 2, so perhaps now a valuation should be 14 , not 10.

Good morning MO
Where did you pick up the mention of involvement of Witan? I guess you mean Witan Investment trust rather than Witan International do you?

An aerial conveyor following the route of Ledgate lane going South to where it crosses the rail line might be an answer.
Just to the East of where the two cross there is what appears to be a rail siding. If possible, all road transport of aggregates might be avoided and the way opened up for massively increased tonnages.
Here is a link to an AA route planner for what seems to be the proposed road route.
https://www.theaa.com/route-planner/route?from=Drakelands%20Mine,%20Sparkwell,%20Plymouth,%20UK&to=Millbay,%20Plymouth,%20UK&via=Strode%20Road,%20Newnham%20Industrial%20Estate,%20Plymouth,%20UK%7CDeep%20lane%20junction

LB "Hi Vii. Get that and all a great idea, but isn't this about shipping out aggregates to generate revenues? Initially at least? "

You are quite right it is about aggregates. I had a mental lapse!

LB After Newnham, there is concern about lorries going through Plympton, before the A38. To cut lorry movements, instead of shipping to the docks at Plymouth and then to the Far East, it might be better to do the processing on or near the mine site. Lots of cheap energy is what is needed for that. If stockpiling of concentrate and processing in the Summer and on windy days was possible, the nearby Newnham solar farm and the new proposed solar/wind farm might be able to oblige? Processing within the UK would be preferable too, for strategic purposes, as Western munition stocks will need to be restored shortly. (As TUN/Hemerdon has one of the few sources of tungsten in the West) But Government intervention and finance would probably be needed to fast track this approach. But I can't see the great talking shop in London getting its act together quickly unless we get involved in a war.

https://alkemycapital.co.uk/investors/analyst-coverage

Cornish Lithium has just published a proposal to re gegister as a plc. This involves shareholders voting on the New name Cornish Lithium plc, and on a new 35 page Articles of association. Link:-
https://cornishlithium.com/wp-content/uploads/2022/10/Project-Arthur-Resulotions-and-New-Articles-of-Association.pdf
This is clearly a move which will help facilitate the IPO or flotation of the company on the stock market and is another step towards financing and future production.
Cornish Metals is a shareholder of, and royalty receiver from, Cornish Lithium ltd.

It is most helpful to have definitive corporate-sourced answers to queries of this nature. Especially when there are those on this board who are peddling worrisome or false information to try to manipulate the share price.

Southwesterner Good morning
Thanks for the good info about Hensbarrow. I wonder if the benefit of not having the cost of mining/extracting the ore by using the material from the clay waste tips, compensates for the lower grade?
Do you know what process Imerys are likely to use to extract lithium from the ore in France?

The rise may also be due to news about the sale of the High Temperature solutions business

trikidiki3 Interesting post - thanks

CL said recently that Imerys (with whom CL had a CLICC joint venture) :-
https://cornishlithium.com/innovation/grant-funded-projects/cliccc-project/
were concentrating their efforts on France rather than the St Austell area where they have a large kaolin production activity.
One wonders why Imerys chose to expand in France? Was it just because they are a french company, was it because they were offered incentives to do so, or was it that the resources in France were more economic to exploit than those in Cornwall? The latter two might have implications for CL.
It would be interesting to know what method they are going to use for extraction and processing of the lithium and how advanced they are with their decision. They seem to be a little behind CL and BL in that they are aiming for production in 2028. However, as Imerys is an established company with cash flow/listing/finance , they do have an advantage over the private limited companies CL and BL that are yet to list and yet to raise the large scale finance required to go into production.
It may be that Imerys would like to access the technology that CL and BL have developed and may try to do a deal or even take them over. Although Imerys may in future be a competitor, demand is likely to exceed supply by such a large margin it will hardly matter.
I wonder if the surge in the Imerys share price since the beginning of September (€28 to €38) has something to do with it being perceived as a beneficiary of the boom in EV.

China’s Billion-Dollar Cash-for-Copper Trade Grinds to a Halt
https://news.yahoo.com/china-billion-dollar-cash-copper-003010810.html
Run out of stock................................

Within Cornish Lithium's sustainability report there is an interesting graph on page 11. It shows Global Lithium supply and demand for 2015 to 2030. It looks to me as if demand will exceed supply by around 50% by 2030. This suggests the price of lithium carbonate/hydroxide is set to remain very strong for some time to come. Here is a link got to page 11
https://cornishlithium.com/wp-content/uploads/2022/09/CLSustainabilityReport220922_0Bleed.pdf

Splenge/ Lovelyboy From memory, the latest pricing is around £12/tonne for aggregate sales, up from initial expectations. And I think it was confirmed the 200 were round trips.
So if the 200 loads are of aggregate sold at £12/tonne, that represents revenues of £67,200 per day or £24.5m in 365 days.
At the moment it looks as if HS2 is still going ahead. That is driving demand in the UK.

Hi MO

A couple of great posts thanks.

Although it is a most welcome idea, what leads you to think CUSN shareholders will be offered Cornish Lithium shares in a favourable way? i.e. either at a discount or more in quantity? Why would it be in CL's interests to do that?

LB Thanks for the post. Unfortunately I missed it. Is it available as a recording?

Did JM say anything about energy costs coming down? Or TUN's efforts to buy direct from the nearby solar farm?

.... got its placing away today, and the raise was "upsized" due to investor demand.

https://www.londonstockexchange.com/news-article/CTL/results-of-fundraising/15681650

This will be encouraging for Cornish Lithium perhaps.

If you want the same opportunity to put in more capital - if needed - as institutions, keep your pre-emption rights. If you are happy to be diluted, AGAIN, vote for resolution 8.
My choice - vote against the resolution .........................