Member Info for Valuation-it-is

CUSN has significant stakes in Cornish Lithium which will be coming to the market probably in the Autumn.

This article in the Express makes it clear just how important supplies of Lithium will be.

https://www.express.co.uk/news/science/1656610/xi-jinping-china-news-trigger-frightening-plan-electric-vehicles-taiwan-lithium-factories?pure360.trackingid=aad135fe-99ba-48c2-9106-d114bf63e452

MO
I don't think we are being brought down ready for money to come in at a discounted price. Why? Because we have just had an oversubscribed fund raise which brought in a big new shareholder - Sir Mick Davis - and his team at Vision Blue Resources. CUSN is financed for about 2 years or so hence. In that time period I expect the indicated and inferred resources to be built up considerably, leading to a rise in the company value and the share price. That in turn will trigger the conversion of the warrants, providing the finance for the next stage, i.e. the process plant, if indeed that is needed at all. (CUSN may do a deal with another processor with spare capacity, which would obviate the need for plant finance. )
Meanwhile, as you say Cornish Lithium is likely to float, and the value that CUSN holds in CL will become more apparent. That too may trigger a re-rating of the CUSN shares.

The big miners have huge profits, lots of cash and need to find resources to supply the burgeoning demand for electrification metals.
In Cornwall and Devon we have tiny exploration/development companies, that need cash to exploit their vast resources of those same metals.
What looks likely to happen?

From the Telegraph:-
"Miners provided the biggest boost after BHP Group reported its highest profits since 2011 thanks to surging commodities prices. Glencore and Rio Tinto were among the biggest risers"

An alternative battery perhaps?
https://www.youtube.com/watch?v=IBE0NADjSrE
https://www.youtube.com/watch?v=B-1oJXwN37M

See ALK announcement.

What this suggests is that ALK will be considering processing of brines as well as spodumene. Will a MOU with Cornish Lithium ( in which CUSN has a significant interest) be next?

https://www.express.co.uk/news/science/1654414/elon-musk-new-brexit-britain-uk-handed-ev-boost-tesla-gigafactory-electric-vehicles-briti?pure360.trackingid=aad135fe-99ba-48c2-9106-d114bf63e452

https://www.express.co.uk/news/science/1654414/elon-musk-new-brexit-britain-uk-handed-ev-boost-tesla-gigafactory-electric-vehicles-briti?pure360.trackingid=aad135fe-99ba-48c2-9106-d114bf63e452

This may have some pointers for CL and CUSN.......

AfriTin Lithium Webinar: 18th August 2022

Investors can sign up to Investor Meet Company for free via:
https://www.investormeetcompany.com/afritin-mining-limited/register-investor

Another piece of the jigsaw coming together in the announcement today.

The US have announced a huge governmental package designed to stimulate to the move to electrification.
That will boost demand for key metals, copper and tin. A significant stimulus for future prices and therefore for Cornish mining.

The US have announced a huge governmental package designed to stimulate to the move to electrification.
That will boost demand for key metals, copper and tin. A significant stimulus for future prices and therefore for Cornish mining.

It may be that the last large source of lithium will be able to command the highest off-take price. So the fact that CL have not yet got an off-take agreement may be extremely positive.
MO
I wonder if you have a chronological record of off-take agreements? I wonder if it shows a sharply rising price per tonne over time? Given Lithium prices have risen sharply over the last year it probably does. It is therefore good news that CL seems to have not sold forward any of their potential. It is better that funding has come from financial markets rather than selling future product.
It is a great time to be in smaller mining companies with mineral rights. The majors are looking to replenish their resources and are bursting with cash.

MO ALK - does train 1 use a flotation tank in processing ?
I think the best answer would come from ALK's IR department. What I picked up was that they are preparing for a number of different inputs/feedstocks and are hoping to be flexible in their outputs. That to me suggests several different flowsheets.
Their presentation states:-
"Multiple feedstocks to produce Lithium Hydroxide (NMC) Lithium Carbonate (LFP) and Nickel Sulphate"
and
"Using a renewable-powered electrochemical process route to produce up to 96,000 tpa (equivalent to ~15% of European demand) of ultra low-carbon Lithium Hydroxide"

I suspect the combination of a possible brine input and an electrochemical process would necessitate a tank, but you are the expert!

bbr391
The expression "Pushing on an open door " comes to mind here.

When you write "Outstanding is apt" , won't Traxys provide what is required?

pawgee

Another thought for you. If you are interested in taking part in the CL IPO, I should register your interest with CL's investor relations manager. email........... IR@cornishlithium.com

pawgee

Q: Buy CUSN now or CL later?
Much depends on the investment exposure you want. CUSN is fully funded for the next 2+ years, and if all goes to plan, the warrants will enable the rest of the funding to be completed thereafter.
On the funding side, CL is likely to need a great deal of capital input (£100s of millions) after its IPO especially if it decides to process the lithium itself rather than use a third party. Getting in at the IPO stage may give you pre-emption rights for further issues, but these are often voted away, and I think may have gone for 5 years in CL, but please check that. It is likely therefore that investorsin CL may experience dilution as funding rounds occur.

CUSN has a free carried interest of 25% in the first project the CL takes to BFS stage on CUSN mineral rights areas and 10% thereafter for further projects. A massive benefit to CUSN. CUSN ALSO has royalties to come from CL.

With CL the key exposure is to Lithium and with CUSN apart from the various interests in CL the drivers will be tin and perhaps copper.
CUSN may get into production in about 4 years time, CL may be sooner, but if so CUSN would be likely to benefit.
There are many other factors to consider but I hope those above are helpful.

MO

I share you positive view. Small point. My understanding is that British Lithium and CL both can benefit from already mined china clay waste tips, i.e. millions of tons of already mined material ( the Cornish Alps) waiting to be processed. So a lot of cost can be avoided on the hard rock side. Imerys are also likely to be a key beneficiary.

The interest CUSN has in CL was described by CUSN as follows:-
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.

MO
Many thanks for your efforts. I found out after my posting that there are 3 companies with the code ALK. You will I am sure have sorted out which one it is.