Alkemy Capital Investments Share Discussion Threads

[bountyhunter] 16/12/2022 17:43

Back up to £3 today, not bad with the wider market well into the red.

[aimmafia] 16/12/2022 14:57

Seller looks done finally. Been going on for weeks and weeks.

[mwj1959] 16/12/2022 13:23

£300m mkt cap would be fine if they had financing. In fact it would be cheap! The lack of liquidity has clearly helped the recent ALK share price move and it is also clear that if this project is able to deliver best case first production at the end of 2024 it will be worth multiples of is current £20m mkt cap. But my underlying point is that there is a very long way to go before we reach that and there are significant hurdles to be cleared before we get there. In particular let's hope that it is easier to get funding ($290m for the first train, which includes a 17.5% contingency) than it currently appears to be for PRE. Proof will be in the delivery as always with these sort of companies.
It might also be worth considering whether a bigger player with much deeper pockets takes over the company.

[patch13] 16/12/2022 11:18

Eh - pre was at £300m!
Also check out PA comments to the parliamentary committee where he said it’s easier to get funding for lithium projects compared to other rare earths such as pre

[mwj1959] 16/12/2022 11:03

Given the timeline for this project I suspect that there will be many trading opportunities along the way on the back of news flow or lack of it. The big challenge at present is financing and, given the situation at PRE (see my comments on that thread), it is probably the major reason why I've been surprised by the share price move (PRE has gone the opposite way!). A lot of capital (largely debt I suspect - as a marker PRE is looking to raise around 70% from the debt markets) needs to be raised to get this project through to cashflow generation. And for now debt markets are not a particularly welcoming place for such projects, regardless of their merits. Or at least only welcoming at fairly punitive levels of interest with all sorts of conditions attached!
It would be great to get the opportunity to quiz PA about all of this, but I suspect that we won't get an opportunity to do so for a while.

[bountyhunter] 16/12/2022 10:33

Header updated including a link to the website at the top.

[aimmafia] 16/12/2022 09:28

Sooooo your looking for a cheaper buy back price. That's ok if you get it.

[mwj1959] 16/12/2022 08:41

Only a bit of a miracle! And when I spoke to Paul Atherley at the PRE AGM he also gave me the impression that he was surprised by the surge in the share price.
I still believe in the LT opportunity, but think the stock has got a bit ahead of itself. So I've taken out around 30% of my exposure, so now basically in for "free". Prudent portfolio management. It's rarely wrong to take a profit.

[jimduggen] 16/12/2022 07:55

“The first thing we need to do is establish independent, sustainable, resilient supply chains for the UK, because at the moment we are sitting here totally depending on China for these supplies.” And goes on to say “to ensure the security and success of the nations net zero plans.”

[bountyhunter] 15/12/2022 22:14

New thread including charts, news and links.

[bountyhunter] 15/12/2022 22:09

. . . .
Alkemy Capital Investments plc is focussed on developing projects in the energy transition metals sector. Alkemy’s wholly-owned subsidiary Tees Valley Lithium is developing a state of the art lithium hydroxide plant at Teesside, UK.



!FOLLOWFEED




From the Interims 27 October 2022
"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."

Corporate Presentation December 2022


25 November 2022
Alkemy Capital Investments plc ("Alkemy") (ALK:LSE) (JV2:FRA) is pleased to announce that its wholly owned subsidiary Tees Valley Lithium Ltd (" TVL ") has received full planning permission to build Europe's largest lithium hydroxide refinery at Teesside, UK, to supply the burgeoning electric vehicle battery industry.

-- TVL has been granted full planning permission from Redcar & Cleveland Borough Council to establish Europe's largest - and the UK's first - world-class lithium hydroxide refinery, located at the Wilton International Chemicals Park in the Teesside Freeport.

-- Following completion of a full Environmental Impact Assessment (EIA), in conjunction with local consultation over an eighteen-month period, TVL's US$300 million zero waste facility is now shovel-ready with production forecasted to commence in 2025, generating over 1,000 local jobs.

-- Utilising state-of-the-art electrochemical processing and powered by 100% certified green energy, TVL's zero waste lithium refinery will be the largest in Europe - producing 96,000tpa of low-carbon battery-grade lithium hydroxide once in full production - equivalent to 15% of projected European demand.

23 October 2023

[aimmafia] 15/12/2022 16:36

If it's a miracle it's at 3 pound. Why didn't you sell the lot?

[mwj1959] 15/12/2022 15:38

AimMafia - Can u explain how you think its going to £6? I think its a bit of a miracle that its at £3, but have been delighted to top slice some profits at that level. Nowhere near any financing as far as I am aware (the same problem that Atherley's other venture, PRE, currently has) and 18m behind PRE in terms of development and cash flow generation. Yes, there are some fancy (house) broker price targets out there and the story is a good one, but it is going to take time and a lot of money for it to materialise. IMHO of course.

[jimduggen] 15/12/2022 15:08

Yes sir
Just need this lease issue sorted

[aimmafia] 12/12/2022 08:13

Jim I think £6 is achievable in the very near term

[jimduggen] 11/12/2022 22:40

Expecting a bag on this this week.
Lease news

[smackeraim] 06/12/2022 15:24

recorded on player here in parliament

[bountyhunter] 05/12/2022 09:12

New corporate presentation:

[mwj1959] 03/12/2022 15:11

I wonder what sort of supportive investors actually means!

[smackeraim] 03/12/2022 11:11

Last week the @TVLithium team visited their site at Wilton International with a group of supportive investors.

@TVLithium is the first UK lithium refinery to receive full planning approval.

[patch13] 02/12/2022 21:10

Equity Investment at tvl level will mean a reduction in cash flows to Alk but the question is how much! The project had compelling financials so I would hope not too much !

[bountyhunter] 02/12/2022 17:56

Possibly, but with the ALK market cap at only 21m if there is minimal or no dilution and the project is a success we could still see multiples of the current price here and there are some chunky analyst targets around :)

[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.