Member Info for Valuation-it-is

Link is :- https://www.bbc.co.uk/programmes/m001cdr6

The Scramble for Rare Earths on BBC radio 4 at 13.45pm today and every day this week.

https://www.bbc.co.uk/programmes/m001cdr6

The Scramble for Rare Earths on BBC radio 4 at 13.45pm today and every day this week.

https://www.bbc.co.uk/programmes/m001cdr6

The Scramble for Rare Earths on BBC radio 4 at 13.45pm today and every day this week.

https://www.bbc.co.uk/programmes/m001cdr6

This is bound to raise awareness of Pensana and what it is trying to achieve.

It seems Western stock levels have been run down. No only is re-stocking likely but an increase in stock levels.
Tungsten is used in a lot of armaments, so it will be a good time for TUN to be bringing a supply of tungsten on stream.
It is not just the outlook for aggregates that is looking good......................
https://www.telegraph.co.uk/business/2022/09/24/britain-runs-low-ammo-ukraine-bombards-kremlin-forces/

"The price of aggregates — which includes sand, gravel and concrete — surged 63.2 per cent in the year to July, "

https://www.ft.com/content/8dac9188-367a-48b6-8630-be3218a3c99f

With KK giving fast tracking to many road projects, TUN's aggregate sales look set for a good period ahead.

"To support growth right across the country, we need to go further, with targeted action in local areas. Today, I can announce the creation of new investment zones. We will liberalise planning rules in specified agreed sites, releasing land and accelerating development. And we will cut taxes. For businesses in designated tax sites, for 10 years, there will be accelerated tax reliefs for structures and buildings and 100% tax relief on qualifying investments in plant and machinery. On purchases of land and buildings for commercial or new residential development, there will be no stamp duty to pay whatsoever; on newly occupied business premises, there will be no business rates to pay whatsoever; and if a business hires a new employee in the tax site, on the first £50,000 they earn, the employer will pay no national insurance whatsoever. That is an unprecedented set of tax incentives for business to invest, build and create jobs right across the country.

I can confirm to the House that we are in early discussions with nearly 40 places such as Tees Valley, the west midlands, Norfolk and the west of England, to establish investment zones. We will work with the devolved Administrations and local partners to make sure that Scotland, Wales and Northern Ireland will also benefit if they are willing to. If we really want to level up, we have to unleash the power of the private sector.

https://www.express.co.uk/news/science/1665526/elon-musk-news-tesla-expansion-gigafactory-uk-takeover-britishvolt-electric-vehicles-jlr

Richyptamworth Good points and one could add the possibility of a rights issue where dilution occurs only if one doesnt take up the rights.

Not heard that. It may be confusion with Cornish Lithium ltd, which has recently announced it will receive a grant to build a 5000 ton per annum pilot plant

The Cornwall mining conference starts towards the end of September.
https://cornishminingconference.co.uk/

The short position in the Canadian market increased yesterday to 1.34m. Today CL has made an announcement (see below)and the share price in the UK rises so far 6+%. This is a very dangerous share to short.

Continues.......
The Demonstration Plant will comprise concentration and hydrometallurgical processing steps. The first pre-concentration step will be via comminution and flotation to produce a lithium mica concentrate. This concentrate will then be fed into the second processing step, a hydrometallurgical process, using the patented Lepidico L-Max® and LOH-Max® processing technologies which Cornish Lithium has an exclusive licence for to produce lithium hydroxide. The award from ATF will be used to develop the hydrometallurgical elements of the Demonstration Plant which is expected to produce commercial samples of lithium hydroxide for evaluation by end users such as battery producers and automotive Original Equipment Manufacturers (OEMs). In addition, the Demonstration Plant will produce samples of by-products such as gypsum, sulphate of potash, caesium and rubidium sulphate alum. The Company has already undertaken detailed metallurgical testing of these processes at pilot scale but will now build a demonstration scale plant to validate the scale up and commercial viability of the technology.

Following the recent completion of a scoping study for the Trelavour Hard Rock Lithium Project, the Demonstration Plant will form a critical input to the Company’s feasibility study. Subject to the conclusions of the feasibility study, it is the Company’s intention to build a commercial lithium extraction plant in Cornwall with the production of lithium hydroxide expected to commence in 2026.

Jeremy Wrathall, CEO and Founder of Cornish Lithium, said:
“We are delighted to have been awarded this ATF grant as it will accelerate our progress towards the commercial production of battery grade lithium hydroxide in the UK. We believe that a secure, sustainable domestic supply of lithium is essential for the development of a resilient electric vehicle supply chain for the British automotive industry. The award of this grant provides further validation of the Trelavour Project’s potential, following our major institutional shareholder, TechMet, electing to exercise its option to invest a further £9.0 million after its review of our scoping study.

“This award from the ATF will be used, along with funds from the TechMet option exercise, to construct the Demonstration Plant at Trelavour. This will be a key workstream to allow us to define the processing flow sheet for the project fully as well as enable the production of samples that can be supplied to potential end users whether as lithium compounds or in the form of by-products that are yet to be incorporated within the economic model for the project.”

Take a look at the SML board. Mr Richards has taken a 4% stake in the company. Look at his past experience.

Mr Richards
https://www.marketscreener.com/business-leaders/William-Phillip-Seymour-Richards-06RCFG-E/biography/
Within which:-
"In the past Mr. Richards was Chief Executive Officer of RAB Global Mining & Resources Fund Ltd., Managing Director-Investment Banking at Merrill Lynch International and Member-European Equity Broking Team at James Capel & Co. Ltd."

Why did they declare? Because that is the Stock Exchange rule to do so, when you go through 3% or any number above.

The lack of an announcement at a 3% holding level appears to suggest that Eagle Trust bought the 4+% holding in one go.
It will be interesting to see if further purchases take place taking the holding through 5% when another announcement should be made. Its around a £200k outlay - a vote of confidence. It seems as if Eagle trust may be investing on behalf of .....................................
https://www.marketscreener.com/business-leaders/William-Phillip-Seymour-Richards-06RCFG-E/biography/
which amongst other things states:-
"In the past Mr. Richards was Chief Executive Officer of RAB Global Mining & Resources Fund Ltd., Managing Director-Investment Banking at Merrill Lynch International and Member-European Equity Broking Team at James Capel & Co. Ltd."

Dear MO

So sorry to hear about your very demanding difficulties. I am sure all posters to this board will join me in wishing you a complete and speedy recovery for both you and your wife.

Vii

https://cornishminingconference.co.uk/

Fozdog IPO valuation
P/E evaluations are clearly out at this stage. Even DCFs based on likely production - as we do not yet have a processing cost to apply to likely extraction rates. So my thinking would be on comparatives with other up and coming Lithium producers - adjusted for relative levels of resources. - (MO will probably have a list of comparators)
I remember when CL put out its maiden resource statement there were some very attractive numbers appearing for values of what was in the ground, but at present we are lacking information on the costs of extraction and processing thereafter. It is going to be a challenge to value CL without considerably more information than is currently available.