Bacanora Lithium Share Discussion Threads

[chinese investor] 16/9/2015 07:45

Should Be A Good Day !

[tomthedom] 16/9/2015 07:43

More chunky buying going on in Canada last night.
Should be 95p minimum here.

[tebbin] 14/9/2015 08:38

It will be interesting what The Frankfurt Motor Show brings out of the cupboard this week..

Expect more EV goodies....

[12bn12bn] 11/9/2015 16:29

REM gone quiet on buying front in last week.

[dukedosh] 11/9/2015 15:50

Share tips from Investors Chronicle

Bacanora Minerals Ltd

Thu 10 September 2015
A A A

Recommendation type: Speculative
Alex Newman

In August, the Bloomberg Commodity Index fell to its lowest level since the turn of the century, amid slowing Chinese growth and a decimated oil price. Metals have been among the worst performers this year, with spot prices for copper, aluminium, zinc and nickel all down considerably. But one commodity to have bucked this trend is lithium, global demand for which is expected to surge over the next decade thanks to the proliferation of rechargeable lithium-ion batteries. Fortunately for UK investors, Aim-traded Bacanora Minerals (BCN) represents an excellent way to buy into this story.

Bacanora, which has a dual listing in Toronto, is a miner of high-grade lithium and borate in Sonora, northern Mexico. The company has recently completed a two-year pilot, so far revealing an indicated resource of 1.05m tonnes of battery-grade lithium carbonate, and a further 4.8m tonnes of inferred resources, all attributable to Bacanora. Based on current lithium carbonate prices of $6,000 (£3,925) a tonne, the company might well be sitting on resources worth $4bn-$23bn, after costs. That's a huge premium to the miner's £72m current market capitalisation.

Demand for lithium carbonate is already strong, and growing. Consumption is forecast to grow by 10 per cent a year between 2011 and 2025, according to research from signumBOX, with batteries for hybrid and electric vehicles accounting for 54 per cent of the total increase in demand for the metal, while demand from portable devices is also expected to more than triple over the period. And with 85 per cent of global supply controlled by just three companies, the fundamentals are there to push prices higher.





Last month, Bacanora signed a landmark agreement with Tesla Motors as one of a handful of lithium hydroxide suppliers to the electric car maker's Gigafactory in Nevada, a project which Goldman Sachs thinks could drain 17 per cent of the global lithium supply. The deal is for five years from the date Tesla places its first order, and providing Bacanora meets several production milestones. And if all goes well, Tesla has retained the option to extend the arrangement for a further five years.

Before this, Bacanora has several significant tasks on its hands. The most pressing is to complete a pre-feasibility study in the first three months of 2016, which will set the groundwork for a plant capable of producing 35,000 tonnes of lithium carbonate a year, with the potential to upgrade to 50,000tpa. That plant isn't going to be built without a significant capital-raising - likely to be at least $114m - funded through a mix of debt and equity.

Shareholders therefore face significant dilution, but the payback could be quick and impressive. By Bacanora's calculations, an operation producing 35,000tpa over 20 years would generate annual revenues of $210m, and have a net present value of $848m when discounted at 8 per cent. This is based on operating costs of $2,000 and an average lithium carbonate price of $6,000 a tonne. Based on this forecast, capital costs would be paid back in under two years. The prediction excludes exploitation of the inferred resource, or a possible ramp-up in production to 50,000tpa.

BACANORA MINERALS (BCN)
ORD PRICE: 86p MARKET VALUE: £72.8m
TOUCH: 82-89p 12-MONTH HIGH: 102p LOW: 33.5p
FORWARD DIVIDEND YIELD: nil FORWARD PE RATIO: na
NET ASSET VALUE: 28¢ NET CASH: C$11.6m

Year to 30 Jun Turnover (C$m) Pre-tax profit (C$m) Earnings per share (¢) Dividend per share (¢)
2012 0.03 -0.95 -2 nil
2013 0.01 -0.75 -1 nil
2014 0.01 -2.65 -3 nil
% change - - - -

Normal market size: 10,000

Matched bargain trading

Beta: na

*C$=£0.497

Share tip summary

In its pre-revenue state and without analyst forecasts, both a valuation argument and an investment timescale are hard to pin down. As such, this is one for the brave. But taking into account the fundamentals of the global lithium market, and with Tesla giving Bacanora not only its implicit seal of approval to the project but also its custom, the upside potential is colossal. Buy.

Last IC view: None

[chinese investor] 11/9/2015 12:00

Next Week !

Chinese Investor (BCN) 1 Sep'15 - 09:51
100p Soon !

[ianbrewster] 11/9/2015 11:30

Tipped in this weeks Investors Chronical

[super7] 11/9/2015 11:09

REM buying more shares.....

[12bn12bn] 11/9/2015 10:01

At one stage ratio was 42:1. It is now 82:1. Why would you buy REM?

[andrbea] 11/9/2015 09:17

with the yagm selling cloud always over rem, punters are deciding to go with bcn, for the next 4-6 months I reckon
bcn up 5%

[wrtmf] 09/9/2015 10:43

I agree wholeheartedly and we wouldn't expect musk to convey that in any press interview...

[senttothegallows] 08/9/2015 19:10

One thing is for sure Tesla desperately needs BCN litium

[12bn12bn] 08/9/2015 19:08

www.investing.com/analysis/dajin-resources:-right-place,-time-in-nevada%E2%80%99s-lithium-hub-264433


Last week, Tesla Motors (NASDAQ:TSLA) announced that it had agreed in principle to an off-take agreement with Bacanora Minerals Ltd. (TO:BCN) (located in Sonora Mexico) and to a lesser extent, its joint venture partner, on a portion of their properties, Rare Earth Min. Since then, Bacanora’s stock is up approximately 40%. At first, I was surprised Bacanora’s stock didn’t soar even higher. It turns out that the off-take agreement has a number of contingencies and no financial commitment from Tesla. In fact, Tesla’s Elon Musk was quoted as saying, “this lithium deal is not exclusive (and) has many contingencies. The press on this matter is unwarranted.”



The rest is quite a good read IMO.

[carterone] 08/9/2015 10:29

Nice and quiet here, looks like it wants to retest the 1.00 mark.

[12bn12bn] 05/9/2015 09:10

Material change report - English

ITEM 7 Omitted Information:
Certain information relating to future pricing formula and forecasted deliveries has been omitted on the basis of confidentiality and on the basis that the agreement is subject to various conditions in relation to project execution, product quality, pricing and timing of delivery. Actual prices and volumes will only be finalized during the development phase in due course.

from

www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00027876

[zinkwazi13] 03/9/2015 17:01

Ridiculous spread

[hawthorn16] 03/9/2015 16:18

Damn market makers fudging the truth......

[napdphil] 03/9/2015 16:06

Going to finish down

[chinese investor] 03/9/2015 07:42

It's Gonna Be A Good Day !

[hawthorn16] 01/9/2015 16:36

Profit taking

[letmepass] 01/9/2015 16:05

bcn 6% down at the moment.. What is that about.,?

[ftangftang] 01/9/2015 14:28

Rem - Analyst Interview, WH Ireland



cheers
ft ft

[hawthorn16] 01/9/2015 10:19

Compared with Sirius Minerals (the Yorkshire Potash mine) Bacanora's market cap should be in the £250-350m valuation on resource alone. Gives an share price of around £4

[rossowheels] 01/9/2015 10:00

Table 2. Inferred Lithium Resource Estimate Summary - La Ventana Concession (From PEA)Average Grade Unit Tonnes Li ppm LCE % LCE tonnesUpper Clay 22,642,000 2,632 1.3 292,000Lower Clay 20,682,000 4,103 2.0 420,000Lower Clay - up dip 16,829,000 2,557 1.3 218,000Upper & Lower Clay 60,153,000 3,000 1.6 930,000RNS TODAY (FLEUR CONCESSION)Hole Unit From To (m) Length Li ppm %LCE*(1) (m) (m) ======= ======= ======= ======= ======= ======= ========= Upper ES-44 Clay 74.27 105.28 31.01 2,127 1.13 ------- ------- ------- ------- ------- ------- --------- Lower Clay 117.65 133.19 15.54 5,032 2.68 --------------- ------- ------- ------- ------- --------- Lower ES-45 Clay 125.73 139.9 14.17 4,503 2.40 ------- ------- ------- ------- ------- ------- --------- Upper ES-46 Clay 129.44 154.18 24.74 1,918 1.02 ------- ------- ------- ------- ------- ------- --------- Lower Clay 162.64 178.62 15.98 4,605 2.45 --------------- ------- ------- ------- ------- --------- Upper ES-47 Clay 94.84 111.55 16.71 1,287 0.69 ------- ------- ------- ------- ------- ------- --------- Lower Clay 125.27 150.8 25.53 5,145 2.74 --------------- ------- ------- ------- ------- ---------

[chinese investor] 01/9/2015 09:51

100p Soon !