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CEO.CA members discuss high-risk penny stocks which can lose their entire value. Only risk what you can afford to lose.
@nicholaslepan#Lithium – #Chile invites bids to add value to the nation’s lithium resources
- The Chile state organisation CORFO, ‘Corporation for the Promotion of Production’ is to hold a tender in April to encourage companies to better utilise Chile’s lithium resources.
- The nation is looking for companies to add value through further processing towards battery quality material and potentially even to manufacture batteries within Chile.
- Chinese battery maker Vision Group and Kanhoo which produces rare earth metals is reported to have put forward a proposal for a lithium hydroxide plant and a lithium battery plant in Chile.
- SP angel Meyer suspects many other lithium miners will be put off by the cost of meeting these sort of commitment and that if Chile presses for terms which are too tough then this may serve to hold back the industry.
- Alternatively it may be that Chinese, state sponsored, lithium companies are the only companies which are financially able to meet the new commitments effectively barring new entrants into the Chilean lithium scene.
@EpsteinResearch$CRE, I'm working on another article for $CRE, their new hire is pretty impressive, Steffen Harber, he was President and CEO of Rockwood Lithium GmbH, among other things, PhD as well. The BFS is going to roughly triple the size of the pre-tax NPV(8%). At current levels, $CRE would be trading at like 7% of the new pre-tax NPV figure....The HELM agreement they have is one of the best in the #lithium space. A double in the share price, and the Company trades at 15% of the pro forma NPV, not a stretched valuation!
Check out prior articles on $CRE at http://EpsteinResearch.com$CRE is a sponsor of my website....
@PamplonaTrader$GXY.AX GALAXY SECURES US$40M DEBT FACILITY WITH BNP PARIBAS
Secured debt facility of up to US$40 million executed with tier one bank BNP Paribas
Drawdown expected before end of January 2017
Loan to be utilised for repayment of existing OCP Asia facilities and for general corporate purposes
@PamplonaTrader$GXY.AX troubling that they weren't able to sell equity in Sal de Vida for a capital infusion and had to turn to debt.
They've forward sold most of their 2017 production at Mt. Cattlin for a cash advance... G&A + debt servicing just $9m/yr... they still didn't have $$$ to make ends meet? Mt. Cattlin not as profitable as thought? #lithium
@PhotoJ@PamplonaTrader noticed you put a lot of value on those being closest to production. What's your reasoning behind this? Near term catalyst for share price? Or ensuring current high spot prices are capitalized on? If the latter, what makes you think high spot price is going anywhere but up (aside from breakthroughs in battery tech)? Or something else? #lithium
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@Excelsior@PhotoJ - The world doesn't need 100 more #Lithium projects, and there is likely room for half a dozen more producers to mop up the projected demand for the next decade. Keep in mind the larger companies can also expand their output in concert with new projects coming to production. I agree with @PamplonaTrader that with a frothy frenzy bubble like #Lithium you want to own the producers, and near-term producers in development stage at this point that have proven they understand this sector and have been somewhat de-risked.
Most of the #HotMoney#DealJumping companies (that were previously #RareEarth, #Uranium, #Gold, or #Biotech companies) are late to the party at this point, and just #milking the trend (well, really they are milking investors with $MarketingFluff).
Give it 2 years and see how many are left. They'll all be #weed stocks or #tumbleweeds..... or they'll just jump onto the next hot trend. #SuccessLeavesClues .... So does a trend of changing commodities every 1-2 years.
You also raised a good point in your question about breakthroughs in #Battery tech. What would happen in 3-5 years if batteries changed design and didn't even use #Lithium any more. My attitude is to "make hay while the sun is shining."
@EpsteinResearch$LAC#lithium the Company owned 50% of its giant Argentina Li brine project, with SQM owning 50%. This week, there's been a total of 125 M new shares to be issued. There were about 305 M shares outstanding before the 125 M new. So, 430 M pro forma shares....what % is $LAC left with?
@PamplonaTrader@Excelsior Michael Langford @ML_SuperNinja has been trying to get me to look at $MIN.AX I haven't done enough DD on it yet but he says the Wodgina Tantalum-Lithium project is a world-beater. From what I can tell, $MIN.AX is a very well-run company with a smart business plan... their core business is mining services but they have also been very opportunistic in acquiring equity in strong lithium projects. $MIN.AX probably Ken Brinsden's arch nemesis, having dragged both $AGO.AX and $PLS.AX into legal battles over lithium rights. $MIN.AX owns 8% of $PLS.AX via a settlement in October. #lithium
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@Excelsior@PamplonaTrader - Thanks for that additional info on $MIN.AX - I'm a shareholder of $NMT.AX because while they only hold 13.8% of Mount Marion project with $MIN.AX and Ganfeng , they also have 70% of the ownership of the downstream Eli Process at the Kalgoorlie #Lithium Refinery and $MIN.AX only has 30% of that. In addtion, they have their Barrambie #Titanium Project as a kicker.
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@PamplonaTrader@Excelsior also with regard to producers, I tend to stay away from minority owners because it limits their takeover potential... though I will sometimes make exceptions for world-class projects e.g. Hot Maden, Cukaru Peki, etc