The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
There are 2 key people:
1. Anton de Plessis, CEO: Vast experience at the investment banks raising money for natural resources companies. He also worked at mining majors such as Anglo, Rio and BHP.
2. Jeremy Martin, Non-Exec Chairman: He's also the CEO of HZM, another company in which I'm invested. HZM has 2 major Nickel projects and has already secured bank financing for their maiden project.
In short, in addition to the project and location, management is key. We are still far from funding requirement though. The share price should re-rate as the market understands ZNWD's potential and once the company can get past some of the other issues. Then it'll be bank financing + equity raise to fund the project. I expect there will be offtake announcements first, which would re-rate the company and allow the financing to take place. This is what happened with Piedmont when they announced the Tesla offtake. You can take a look at their share price since Sept.
ZNWD has already done a DFS for the project, which has an NPV of EUR 438m / GBP 386m and generates an IRR of over 27%. This could increase as the price of lithium increases. They have a 50% interest, which is GBP 194m compared to a current market cap is GBP 17m.
I own both EMH and ZNWD and I am pointing out the potential for ZNWD in case folks are interested. But please DYOR!
If I remember correctly, Darin previously said first pour by Xmas.
Here's hoping we get a nice RNS today!
Hi Stockanswer
I no longer live in the UK but I know you could access the TSX and any other major markets like ASX and US markets via Interactive Brokers or Saxo Markets.
Thanks for sharing.
Jeff is a well respected precious metals analyst. I came across PUR in 2019 thanks to him. I also hold First Majestic and Discovery Metals, both companies offer good leverage to silver.
Discovery Metals is also part of the Oxygen Capital group, which includes PUR and headed by Mark O'Dea.
ZNWD will have the closest lithium mine to the Berlin Tesla gigafactory and all the German automakers.
The demand for global lithium will skyrocket in the next decade. So all economical lithium projects will enter production.
Both EMH and ZNWD will benefit from this surge in demand for lithium but ZNWD offers more upside given its market cap is 1/5 of EMH.
Ssseee
This will be the last time I will respond to you on this matter.
The reason for management's decision to sell some of their exercised options is simple: take some cash off the table for their own working capital. Think of it as an end of year bonus. Otherwise, if you exercise all the options and you don't sell any of those shares, then you actually have even less money! How long do you think management can keep buying shares in their company if they have to keep using their cash??? Not everyone is Eric Sprott!
As others have already told you, if you don't like the look of things at PUR, please just sell your shares and move on.
Trek
Total volume for today is a grand total of 84k. This is completely being manipulated by the market makers.
I expect it'll pick up again when TSX opens unless the insiders decide to dump some more shares today. We just have to accept this will happen every time there are options which are exercised. It does not last long and the share price usually resumes its upward move afterwards.
Harry
Those options are issued on pre-agreed dates and more will be issued in later years - it's a good way to keep the management incentivised.
I am surprised many here are not aware of how employee option schemes work. Options are worthless if management don't deliver and the share price does not move.
SssEee
Like others have said, the directors are getting new options issued to them. So why would they want to keep those?
More importantly, you do realise that exercising options even at $0.44 per share and keeping those shares means they have to use their own money to do that. So it makes sense for them to sell the majority of those exercised options to make a profit and actually get some cash from the transaction. Would you keep buying forever the shares in your company while using up all your liquidity? That doesn't make sense. Think about it.
Spiros
Well said. This is a long term hold.
Whether PUR is still around in 5 years is another question. Once the company proves up their resources and expand the mine output and gold is firmly above $2,000/oz, unfortunately, we can expect majors to come sniffing around for a potential takeover. I hope it doesn't happen but we have to be mentally prepared this could be the case in 12-18 months.
SssEee
This is called taking some money off the table. Both Sean and Darin still own more than 1.8m shares each after monetising those options. I think people need to see the bigger picture here.
I would not be surprised that their salaries was not that high 5 years ago when it was a bad bear market for gold and granting employees options is incentivises them to perform and aligns their interest with shareholders.
It is! Don't let this RNS deceive you.
The directors had options exercisable at $0.44 and they sold PART (NOT ALL) of it in the open market around the $2.80 mark. Those options were granted a few years ago when the share price was at $0.44. The same thing happened earlier this week when directors were granted options exercisable at C$2.84 (in line with the current share price) and which will be exercisable in 5 years. It incentivises management to keep performing. Otherwise, those options are worthless.
Darin Labrinz, the CEO, still owns a few million shares. This is NOT a sell out like some people on this forum would think. If the new options are exercisable at C$2.84, then management will work hard to ensure the share price is a lot higher than that in 5 years.
Trek
We both know PUR is nowhere near its full potential. Add on dips if you have spare cash.
Unfortunately, I have already fully allocated my funds for this year and I'm not a trader. In any case, I'm following uncle Eric's lead and I'm still holding every single share I bought in April.
Up 5% in Canada after less than 15 mins.
Volume already above 300k. Looks like someone is loading up. Could it be our elusive GDXJ buyer?
Sasa, Trek
Today's volume is only 273k.
You would not necessarily see that kind of price action based on that kind of volume. Complete manipulation by the market makers. I would not be surprised we head back up to the 160p+ level by the end of the year once the GDXJ keeps adding shares.
Markets are tumbling as a result of the UK lockdown, etc.
Nice one Prophet! Think Friday's price action was a steal.
I'm still holding every single of my shares and plan to ride this wave till it reaches the next KL status.
Let's see if we gap up this morning given the gold price action.
https://roskill.com/news/lithium-ion-batteries-changes-to-the-eu-batteries-directive
One of the key points:
"Providing legal certainty – the Commission intends to help unlock large-scale investments and boost the production capacity for innovative and sustainable batteries in Europe and beyond in response to the fast-growing market."
Projects like EMH and ZNWD will clearly be among the winners here.