Alkemy Capital Investments Share Discussion Threads

[mwj1959] 09/5/2022 08:55

So Trafigura going with Green Lithium...Today's FT article

Commodity trader Trafigura is set to take a stake in a start-up company behind plans to supply car and battery makers in Europe with lithium from a UK refinery.

As part of the investment, Trafigura, one of the world’s biggest metal traders, would provide Green Lithium with feedstock for its planned 50,000 tonne-a-year plant in the north of England and sell the finished product to customers across Europe.

It would be Trafigura’s first big deal in lithium and comes as Russia’s invasion of Ukraine highlights the perils of being too reliant on one country for commodity supplies.

Trafigura estimates that more than 90 per cent of the world’s battery grade lithium is produced from refineries in China, which also processes the vast majority of cobalt and nickel, other key battery materials.

Socrates Economou, head of nickel and cobalt at Trafigura, said a lot of large “gigafactory” battery projects were under development in Europe and North America. “The question is where are they going to get the raw materials that go into the batteries.”

Most of the lithium used in electric car batteries is extracted from brines in Chile and Argentina and from rock dug up in Australia which is then processed in China, often using fossil fuels. Europe has no commercial refineries, making the region’s carmakers almost totally reliant on China for supply.

Benchmark Mineral Intelligence, an industry consultant, forecasts 117,000 tonnes of lithium demand for batteries in Europe this year, rising to 250,000 tonnes in 2025 and 600,000 tonnes by 2030. From 2024, manufacturers in Europe will face high tariffs if they do not source raw materials locally.

The agreement with Trafigura is a vote of confidence in Green Lithium, which hopes to secure the approvals required for its project by the end of the year. The company raised £1.6mn in seed funding last year from investors and has also secured a £600,000 grant from the UK government.

It produced its first battery grade lithium hydroxide — the product favoured by carmakers — under laboratory conditions last year and is raising capital to see it through to a final investment decision. It hopes to have the refinery running by the end of 2025.

[lenses] 05/5/2022 20:19

PA interview

[donoratico] 05/5/2022 19:21

Very interesting interview today with Paul Atherley, by Andrew Monk of VSA Capital - Discussing Alkemy Capital and Tees Valley Lithium (or Thames Valley Lithium as Monk prefers !). Towards end, Atherley talks about the investment path for the stock. Regular mention of Pensana as well.

[mwj1959] 27/4/2022 13:51

Atherley has a lot on his plate what with Pensana currently at a critical stage in its development / fund raising. Big difference in their market caps (£180m vs £10m), but I guess that reflects supposedly better economics with PRE and the more advanced state of its development. He's got a lot of capital to raise!

[lenses] 27/4/2022 08:16

Serious study smacks of serious intent. Fast time line.

Bottom rung play.

There are risks but they have just been reduced.

[snickerdog] 27/4/2022 07:45

Lenses, city rumours they have the sources of lithium sulphate etc. that's part of the magic key to making this happen, feel that with the massive demand they won't have any problems getting the offtakes and partners. Atherley will walk this up.

[lenses] 27/4/2022 07:44

RNS.

Numbers to look at!

[maverick247] 27/4/2022 07:40

Feasibility Study £2.8bn NPVFantastic RNS £2.8bn NPV £50bn gross revenue over 30 year operationLow initial capex £216mhttps://www.Voxmarkets.co.uk/rns/announcement/123d2217-59e3-4e0f-a9bf-48585be43202/

[lenses] 25/4/2022 11:44

Hi Wiseacre

Rns today. Shard as additional broker.

To me this says a cash raise soon.

Presently the in-public info on the business model has gaps. How a placing gets taken up and at what price will give a strong steer on how much more insiders know as to how viable this idea is and perhaps the likelihood of guv support. Plant build est at 400m.

Lithium sulphate from spod aiui is not that costly whereas battery quality hydroxide is a fair bit more so in opex and initial capex. So there could be a respectable margin to be had. However are there spod miners out there who can be lent on to locally produce sulphate rather than just flogg raw spod to China/USA?

Took a position a little while back. Speculation on Atherley this as to whether he has read this right! Noted the trajectory of PM8/PRE prior to it dawning on PIs that it will all need to be paid for. 2-3000% to peak. Also noted how Atherley considers PIs as a necessity to tolerate rather than embrace! IMO ;-)

Present sub 20% free float.

ATB.

[wiseacre] 21/4/2022 11:51

This has been trading now for a couple of months and rise has been meteoric. On the way to becoming best performer 0f 2022.

[energyhobbs] 20/4/2022 02:28

Thanks for adding some colour. I read the prospectus but, as you note, there is not that much info there to determine if the business model is robust. At this stage it seems to be a question of whether you buy into the concept or not and at the current market cap, it feels like an option of sorts. I expect Atherley can pull it off but no guarantees...

[lenses] 19/4/2022 19:27

Hi Hobbs. No and I don't know of any spod mining cos producing sulphate but there are one or two who propose to.

I think the idea from Alkemy is that Europe (plus UK) won't be accepting a high waste feedstock like spod because of ESG and reducing carbon from shipping.

For those in the stream who are not at the top - the top being the miners - presently, and looking to be going forward for a long time, a severe squeeze on margins looks highly likely ahead. Raising money to buy a mine might be a better strategy.

Regardless I've taken a small stake a bit ago as I expect high level support to push a UK hydroxide plant through. 10m mcap, 400m capex? Can't happen without alot of pre planned backing imo. Looks to be sub 20% free float, Atherley has majority.

Check the prospectus.

Atb.

[energyhobbs] 19/4/2022 17:49

Is there any information on where TVL is sourcing their Lithium Sulphate and how long term are the supply agreements? I assume that the business model is based on the "refining margin" but cannot find anything on their public resources to give an indication of what the business model looks like.

[maverick247] 18/4/2022 16:22

https://spongeshare.com/2022/04/18/alkemys-tees-valley-lithium-set-to-lead-the-uks-lithium-charge/

[philsmi1] 02/4/2022 06:55

https://www.business-live.co.uk/enterprise/company-behind-teesside-lithium-hydroxide-23401693

[maverick247] 25/3/2022 07:42

https://spongeshare.com/research/alkemy-capital-research-note/

[wiseacre] 23/3/2022 14:42

You aint seen nothin' yet

[wiseacre] 18/10/2021 10:40

The clowns will have the last laugh. This is going to be an interesting vehicle. And chesty might get egg on his face.

[shortcpx] 01/10/2021 17:14

What clowns are posting on the wrong board? New IPO not Alkane.

[chesty1] 01/10/2021 13:46

Pumpty Dumpty sat on a wall!

[jaforsadi] 01/10/2021 12:17

What clowns are buying this

[spaceparallax] 17/2/2016 11:37

Have any of the compulsorily purchased received their money yet?

[folderboy] 11/12/2015 07:34

Look at old Alkane . . . .

[spaceparallax] 29/10/2015 21:01

Drat, compulsorily purchased. I bet the Directors are laughing all the way to the bank with the outrageously cheap options that they indulged themselves with.