Alkemy Capital Investments Share Discussion Threads

[lenses] 23/11/2022 18:42

Ah, but will it?

TVL simpler, more obvious for lenders to understand, demand pressure higher, more feedstock options, more potential customers...... could leepfrog now aisi.

Support both but out of Pensana some 18m back.

[mwj1959] 23/11/2022 15:34

Still staring, but enjoying the price rise! I'll break it when we see funding. Got PRE to get funded first.

[smackeraim] 23/11/2022 14:56

Looking strong again. Mwj still staring at that glass? Or has he smashed it and walked away?

[jimduggen] 22/11/2022 20:49

December 16th lease agreement deadline
Then funding

[jimduggen] 17/11/2022 17:07

This will bag soon

[smackeraim] 10/11/2022 16:01

Decent prices around here considering highs we seen not long back. Still holding here for the next steps and see where things are.

[lenses] 08/11/2022 08:06

Wave to do FEED.

RNS.

[jimduggen] 07/11/2022 16:11

It is ideally situated no matter how hard you deramp this share

[lenses] 07/11/2022 15:28

And portside, whereas TVL's site is not.

Which will find it easier to raise the mega bucks? The one that is listed or the one that is not.

It's a very hackneyed maxim DYOR.

[euclid5] 07/11/2022 15:21

so in theory and practice Green Lithium are developing something very similar to ALK and will be our competitor, who are partnered with Trafigura - plus are next door to ALK.

[divmad] 07/11/2022 13:59

But presumably Green Lithium will also access the ultra low cost offshore wind power energy source that ALK highlights as a competitive advantage over the Chinese. Just not sure how Green Lithium and ALK final products are designed to be differentiated.

[mwj1959] 07/11/2022 13:33

ALK is mentioned in the article, albeit briefly. Just included it to highlight that ALK isn't the only one to be looking to produce lithium in the UK and competing for first mover advantage both here and in Europe. But ALK does say in their presentation that they will be the first major ultra-low carbon lithium hydroxide plant to be established in Europe.

[euclid5] 07/11/2022 11:13

How is this connected to ALK if Green Lithium is not part of ALK, or is it the location they will be producing this from that ALK will own


Trafigura-backed Green Lithium has selected Teesport, the UK’s fifth largest port, for its £600mn lithium refinery, while Altilium Metals will also build a recycling facility in the region.

[mwj1959] 07/11/2022 10:15

FT online article this morning...

A pair of battery materials start-ups have selected Teesside to locate key parts of the electric vehicle supply chain at a time of uncertainty over the industry’s future in the UK.

Trafigura-backed Green Lithium has selected Teesport, the UK’s fifth largest port, for its £600mn lithium refinery, while Altilium Metals will also build a recycling facility in the region.

The projects are a boost for the north-east but come as the UK’s aspirations to become an EV manufacturing powerhouse are in turmoil after the near-collapse of battery start-up Britishvolt last week. Its planned £3.8bn gigafactory is one hour’s drive north in Blyth.

The new occupants are also a fillip for Teesport owner PD Ports, recently at the centre of a takeover attempt by local mayor Ben Houchen which sparked a legal battle with investment giant Brookfield Asset Management.

In a region with high unemployment, Green Lithium’s project is expected to create 250 permanent jobs and 1,000 during construction, while the recycling plant will hire between 100 and 200 people. Middlesbrough currently has the ninth highest unemployment rate in Britain, according to the Office for National Statistics.

Lithium is produced in two main ways: hard rock is dug up from mainly Australia and refined in China or brines rich in the dissolved mineral are slowly evaporated in Chile and Argentina. Almost 90 per cent of refining capacity for hard rock is based in China, giving the country significant leverage in the event of geopolitical turmoil or severe lithium shortages.

“We need China more than China needs us,” said Sean Sargent, chief executive of Green Lithium. “Only 35 per cent of Chinese production goes into their [EV] production but by the time we go into production they could divert it all into their own EV industry.”

With rising concerns over the Britishvolt project, Sargent expects most of Green Lithium’s output to go to Europe when it begins operations in 2025 but increasingly stay in the UK later into the decade.

“The gigafactory delays are not ideal for these projects,” said Adam Panayi, managing director of Rho Motion, a battery consultancy. “But over a long term horizon, it’s likely that a battery manufacturing factory will be built there and long-term prospects for the businesses are still strong.”

Claire Blanchelande, head of lithium at Trafigura, the commodity trading group that will source the refinery’s feedstock material, said lithium demand in the EU and the UK will increase more than eightfold to 600,000 tonnes by 2030. Green Lithium aims to produce 50,000 tonnes of lithium chemicals per year.

Lithium prices have risen ninefold since the start of 2021 to $74,500 per tonne of lithium hydroxide, according to Benchmark Mineral Intelligence. The surge in prices has stalled the decades-long decline in lithium-ion battery prices and threatens to derail the speed of the shift to electric vehicles.

Lithium refining and recycling of lithium-ion batteries is set to be fiercely competitive with a long road of fundraising ahead for Green Lithium. Tees Valley Lithium is planning a similar processing plant in the same region, while many others are planning projects in the EU. Commodity trader Glencore, one of Britishvolt’s key backers, plans to turn its lead refinery near London into a battery recycling facility.

The commodity is new to PD Ports, one of the area’s biggest landowners, and the Strategic Harbour Authority, although the principle is not. Green Lithium’s arrival sits within an existing wider strategy that seeks third party investment, specifically designed to drive additional traffic on to the River Tees.

With the US providing billions of dollars of grants to battery metal companies in recent months, government subsidies have become a key sticking point. Britishvolt believes its pledged £100mn grant has not been delivered quickly enough, while Green Lithium plans to apply for support for construction.

“If we want regional supply chains in the main electric vehicle markets, refining capacity needs to be built outside of China and this requires support from governments in the UK, US and Europe,” said Blanchelande.

[smackeraim] 07/11/2022 09:35

Mwj's glass must be half full now, if not full

[patch13] 07/11/2022 08:36

ALK will likely only require $86m of equity for Train 1. Free cash flow per year is $120m. Why would ALK give up 80 - 90% of the FCF to fund $86m?

[lenses] 06/11/2022 21:34

Divmad I modelled an expectation for ALK retaining 10 to 20% by TVL in production, from the planned financing in their study earlier this year.

With that I decided it was a buy but with high risk. Also offers a part hedge with pure Li miners aisi.

Now built a position on the lows but kept it to ~10% of risk PF. I have misgivings on the talk to action ratio with Atherly.

[patch13] 05/11/2022 20:24

Based on free cash flow - 70%

[divmad] 05/11/2022 16:43

In return for that colossal outside funding, how much of the project equity do you think is realistic for ALK to be allowed to retain by the greedy money men?

[smackeraim] 05/11/2022 11:48

Plenty interest still. Must be close to some news too I think

[jimduggen] 05/11/2022 10:55

People are asking me to stop posting abou ALK so they can get a cheaper entry

F that - this is one of the most obviously fantastic investments iv come across in years and it’s been a terrible market for the last two years

Mcap still 16x less than the funding amount due to be received - the profits that generated in the first year of production are more than 10x the current mcap alone - we then build to 600mil EBITDA per annum

Short mid and long term multibagger £3 is still sub 20mil mcap and less than 1/10th of the funding to be recieved

[jimduggen] 05/11/2022 09:48

News on the construction licence for the land due in November.

The has been chunky buying going on with only 7m shares in issue !

[lenses] 02/11/2022 10:09

Impressive

[smackeraim] 02/11/2022 09:46

Really perky again.