Cash: 40m US$ = 31m GBP -> current valuation for Sonora proect + Zinnwald project = 21M GBP = 27M us$ thats CRAZY!! the "valuation" will increase by each day the project is progressing. even GANFENG´s technical expertise and knowledge has incredible value for the company and for the SONORA project and the probability to reach production in time and keep within budget is higher then ever before.
"Weather and social unrest are just two of the myriad issues that have hampered the industry, fueling worries there may not be enough of the white metal to sate automakers in the years ahead. “The future supply of battery-quality chemicals is very much in doubt,” said Joe Lowry, an independent industry analyst, who wondered how the industry can hope to produce at least 800,000 metric tons by 2025, more than double current capacity. The popularity of future models from Volkswagen AG (VOWG_p.DE), Tesla and others will ultimately require massive lithium investments in the billions of dollars, said Chris Berry, an independent metals analyst. "
I just Re-read it... "Detailed Engineering Design As previously noted, the Company intends that the THREE PRIMARY PARTS TO ITS PRODUCTION CIRCUIT will be DELIVERED in the following timeframe ... till end of H1 / 2020 !! ... do they mean the design / paperwork or the really the machinery ?
can anybody ask PS for clarification or a statement ? I doubt that Ganfeng and the other sharholders (62% voting power !!) will accept a (further) depletion which will in effect reduce their holding in BCN significantly too ...
"At the 35th meeting of the fourth session of the board of directors of Ganfeng Lithium Co., Ltd. (the “Company”) held on June 29, 2019, the Resolution in Relation to the Investment in Mining Rights by Acquisition of Certain Equity Interests in Bacanora and Sonora, a Subsidiary Engaged in Lithium-Clay Project was considered and approved, pursuant to which, the Company or its wholly-owned subsidiary —Ganfeng International Trade (Shanghai) Co., Ltd" Source: https://www1.hkexnews.hk/listedco/listconews/sehk/2019/1021/2019102100767.pdf
I´m sure the financing desaster of Nemaska creates some additional fear and uncertainty in the market too but Sonora is a completely different project with completely different parameters... It only shows that it is very hard to bring a new project into production w/o external experience ... which again shows that a partner with superior technical project experience is a critical success factor ... and GANFENG is definitely such a partner !! at least .... maybe Nemaskas failure / delay (SP currently -27% for today) will help to stabilize the Li prices for a while ...
stupid trading action today ... it´s all psychological - greed and fear ... triangle formation completed, now fishing the SL´s ... trading is not logical ! I´m sure Ganfeng´s influence will speed up and improve many many processes within Bacanora ... IMO financing package may be delayed after the project evaluation by Ganfeng ... I expect savings of min. 10% due to their relationships and sourcing capabilities in China, also it should be no problem for them to provide a loan to fill the financing gap if existing major shareholders don´t want to invest in the project. If Ganfeng exercises their 50% project option the remaining gap should be manageable ! Things only can get better now ... I only have some doubts about Zinnwald ... hope they can spin it off very very fast and finally put all the focus, concentration and energy to Sonora !!