Alkemy Capital Investments Share Discussion Threads

[mwj1959] 02/12/2022 17:51

Yes, I forgot about that. And the Interims also say that "We are also advancing discussions with financiers for the funding of its LSM and LHM processing facilities and has received significant inbound interest including from private equity, structured bond providers and institutions." Exactly what this means in terms of closeness to financing I don't know, but I suspect that we are still some way off if read through from PRE's comments on financing from yesterday's AGM also apply to ALK. Clearly any major delay could negatively impact April's feasibility study's estimate of construction starting in late 2023 with first production in late 2024.

However, could there not be a situation where there is no shareholding dilution at the ALK level, but where the structure of the TVL financing means that ALK's exposure to TVL's cashflows are diluted.

[bountyhunter] 02/12/2022 13:46

Exactly, in the Interims only around a month ago they said:

"As we intend to primarily finance and operate the LSM and LHM facilities via our operating subsidiary TVL, it is anticipated that there will be no significant dilution to Alkemy's shareholders as part of the proposed financing process."

[patch13] 02/12/2022 13:32

Yes - but ALK have stated in RNS that dilution at the corporate level will not be significant as project funding will be in TVL. I interpret that as a % of the project / TVL will go to new equity holders. How much remains to be seen but at a pay back of 2.6 years and hopefully less than £80m of equity if equity go debt is 30/70 it won’t be too onerous.

[mwj1959] 02/12/2022 12:23

Certainly at this stage of the project capital to progress it can come from the equity market (there was a £1m+ capital raise in the summer for example), but at some point when the big capex is required the company will have to go to the debt markets, albeit they may also raise some equity-like capital via a strategic partner / existing shareholders at the same time. This is basically what PRE is doing or attempting to do. How much equity dilution this will entail is uncertain, but it could be material.

[patch13] 02/12/2022 10:14

Thanks - but if interest in equity is there then is it fair to assume that in ALK’s case they could progress the project with the equity component of financing with bond financing coming later

[mwj1959] 02/12/2022 09:04

I asked PA after the PRE AGM yesterday where we are with ALK and he said 18 months behind PRE. Not quite sure how that stacks with the 2025 first production target for ALK being the same as for PRE. You can go to the PRE BB to see my comments from the AGM. The key takeaway was that current conditions in the bond market are such that the much anticipated bond financing to fund Saltend is unlikely to happen anytime soon (or at least until conditions in the HY market show a degree of normalisation) and consequently the company will need to raise more capital in Q1 23. What applies to PRE on the financing front also applies to ALK, given that they need to raise $250m to get the first Train up and running. So I would caution those who think this share price is only going one way.

[aimmafia] 02/12/2022 08:11

Me too but with all the near term catalysts. £5 a share seems a good near term target

[divmad] 01/12/2022 17:38

Hope it turns out like Ben in the good old days, Aim.

[aimmafia] 01/12/2022 17:15

Market cap only 20 million here and could hit 80 - 100 million quickly

[jimduggen] 01/12/2022 16:59

I ditched contango a few weeks ago and went all in on this.
Clean energy and uk
Not coal and zimbabwe.
Safe bet here and could be life changing

[aimmafia] 01/12/2022 16:46

And Mcm I bought a lot more today

[aimmafia] 01/12/2022 16:25

I'm sorry am I not allowed to have 2 usernames on different platforms?

[apfindley] 01/12/2022 15:56

Is GrantHorsfall on twitter your twin brother?Have you both now ditched Contango, Mcm, Harl, and now both using the same tactics on Alkemy?

[aimmafia] 01/12/2022 15:41

Looking great here. With the low freeFloat and small market cap. You'll see considerable upside over the coming 3 months

[jimduggen] 28/11/2022 19:05

STRONG BUY

[bountyhunter] 26/11/2022 21:28

From the Interims four weeks ago:

"As we intend to primarily finance and operate the LSM and LHM facilities via our operating subsidiary TVL, it is anticipated that there will be no significant dilution to Alkemy's shareholders as part of the proposed financing process."

[mwj1959] 26/11/2022 19:50

Friday's share price rise even got a mention in the Times market report today on the back of planning approval...
"However, while the shares raced up 50p...there is still a long way to go. Alkemy has a market cap of around £20 million but needs to raise $300m in equity and debt to build the plant"

[mwj1959] 26/11/2022 13:45

VSA Capital, the other house advisor, has also raised TP from £8.40 to £10.

[smackeraim] 26/11/2022 11:32

Ben Houchen3rd
Mayor of the Tees Valley
18h

No 10 Downing Street arrives in Darlington

Fantastic to see the Prime Minister Rishi Sunak in his new Darlington office this morning.

I took the opportunity to discuss various projects like the progress we’re making on Net Zero Teesside, bp hydrogen and for his assistance with new investment at the Teesside Freeport.

During the summer, Rishi promised to bring a new Number 10 base to Darlington, on top of us having Treasury and 6 other government departments here. This access to the top table of Government will help us deliver more investment and jobs across Teesside, Darlington and Hartlepool.

I’m delighted to see him deliver on this promise and I’m looking forward to seeing him in Darlington even more often.

[euclid5] 25/11/2022 20:17

Shard Capital broker note out this afternoon:

Indicative valuation increased from 614p to 1228p per share @ 24,000tpa

‘Compelling upside is available’ as the target production is 90,000tpa

[smackeraim] 25/11/2022 17:09

https://www.itv.com/news/tyne-tees/2022-11-25/europes-largest-lithium-hydroxide-refinery-could-bring-1000-jobs-to-teesside