Atlantic Lithium Share Discussion Threads

[husbod] 08/9/2023 18:57

Anyone care to wager whether that RNS will generate a comment by ST in the Chronic Investor next week/week after next?Every little bit helps as they say.Mining permits within the month and it gets even more interesting.Any retrace next week and I'll be topping up.

[neo26] 08/9/2023 17:40

I did say previously after ceo interview that miif deal would be done before ML.Now that miif deal done the ML is next. It will be dodgy if annouced next week as that would apply ghana were giving them ultimatum.Probably in few weeks ml will be issued, its gonna happen.Low 20p was gift wont go there now again.Next catalyst ML..

[bigglesbingham] 08/9/2023 15:08

Yep added 40k at 18 and 60k at 20p but still slightly underwater but not for long

[sipptrader88] 08/9/2023 14:47

Yes indeed UK George the share price Angel note sure puts the recent "games played" into perspective and I guess a few weak hands lost some shares in the process.......Apart from MIIF investment ...certain individuals will have "worked out" or "helped to work out" what's being going down and will be coming through...and I sure a few RIs have accumulated without risk!

The share price Angel note sure also puts the mind at rest and looks to cement our price for now in the region of 50p + when PI/RI catch on to the opportunity presented here in ALL at 26p. There is definately no need for us to be below the Blue Orca short from 38p odd.

The MIIF is 95% coming through on the good terms presented today!

The ML is 99% coming through!

There will be cash of £26m to explore some of the other 97% land licences

There will be a new offtake for the other available 50% which will give us more than enough for our extra mine build capex and plenty left over.

There will be excellent revenue realised and faster than previously perceived.

There will be no need to dilute shareholders to raise capital unless it's adding more proportional value to ALL.

What's not to like about 26p....GLA

[steeplejack] 08/9/2023 13:53

Yes that's right,todays presentation down under confirmed as much.

[l0ngterm] 08/9/2023 13:40

Or sooner, if Ghana are looking to expedite , prioritise epa etc.

[king_roster_iii] 08/9/2023 13:35

Incorrect. 170 million generated in 2025. They will break ground a year from now and the modular units will deliver 170 million of income become main plant comes on line in 2026.

[bigglesbingham] 08/9/2023 12:32

Very good ?

[steeplejack] 08/9/2023 12:19

Yes,first income by first qtr 2026.However,with Piedmont,the Ghanaian Mineral Fund plus monetising an additional offtake partner,it's feasible that AL won't find it necessary to tap the market with an equity placing in the next couple of years.So with funding assured,the share price might more meaningfully reflect the company's prospective earnings,the lithium price and the implications for the bottom line

[nigerianprince] 08/9/2023 12:08

Why do investors get carries way by funding news. This company will have no income till 2026! Yh that.

[ukgeorge] 08/9/2023 10:58

From SPAngel

Company News

Atlantic Lithium* (ALL LN) 25p, Mkt Cap £152m – Ghana Sovereign Wealth Fund signs non-binding heads of terms to buy 6% of Ewoyaa and the wider Ghana portfolio for US$27.9m alongside $5m placement at 41p/s

STRONG BUY from Buy

(Piedmont can earn into up to 50% of the Ewoyaa lithium project through the expenditure of around 70% of the project capex)

This is a refreshingly good day for mining in Ghana as well as a good day for Atlantic Lithium.

Negotiations with MIIF, the Minerals Income Investment Fund have progressed with the singing of non-binding heads of terms for a direct ‘contributing’ investment of US$27.9m into 6% of Atlantic’s Cape Coast portfolio including the Ewoyaa project.
The term ‘contributing’ is all important as it tells us that Ghana is not demanding something for nothing, as some other African nations are wont to do.
MIIF is also investing US$5m directly into Atlantic Lithium by way of a share placing at 21p/s and are subject to a series of lock-up dates.
If MIIF does not contribute to its share of the funding the MIIF fund will be diluted down.

Options: MIIF are also taking warrants at a 40% premium to the subscription price of 21p/s on a two-for-one basis with an 18-month term indicating that they expect to make a profit on the stock over a relatively short period.
The total investment is $32.9m
MIIF is effectively buying into five Ghanian subsidiaries and is committing to stand its corner as a partner with Atlantic Lithium.
This very much better than we had expected and shows MIIF to be working and acting as a true Sovereign Fund.

Director: MIIF also get to place a director at the Ghanaian subsidiary level and have a right to bid for Ewoyaa's available offtake.
Piedmont currently has a first right to acquire up to 50% off the offtake leaving the other 50% up for grabs.

Ghana press: Statements in the Ghana press had led investors to expect potential changes to mineral legislation in Ghana through rising royalties, free carry stakes, a potential ban on the export of DSO and concentrate material.
We are pleased to see none of this in today’s statement.

Mining license: We believe today’s deal with MIIF is a precursor to the award of the mining license by the MinCom, the Minerals Commission.
Capex: US$185m for Eowyaa DMS and second state flotation plant
Piedmont is contributing an initial $70m to the development of Ewoyaa and is likely to raise its investment if required due to its pressing need for spodumene concentrate.

Offtake: We believe Atlantic can use offers for offtake to potentially fund its share of the capex for the Ewoyaa project and reckon their remaining 50% share could command >US$100m in the market due to ongoing strong demand for spodumene concentrates.

Production: 350,000tpa SC6% spodumene concentrate from 2025.
Non-binding agreement: We have met with the MIIF team at their offices in Ghana. They are very professional, and we would be surprised if the non-binding agreement did not come to fruition. Having said that, nothing is ever concluded till final signatures are in place.

Ghana government: While the MIIF fund is not the Government of Ghana it does represent the nation from a financial perspective. We would expect a degree of coordination between the wishes of the government and the MIIF fund and we view today’s deal as declaring that Ghana is open for business for battery metals mining and exports.
While the government always retains the option to impose new rules and regulations, we see MIIF as having done much of the financial negotiation with the Government’s Minerals Commission focussing on other more practical and strategic matters.
Future exploration and development: Having MIIF as a partner is a hugely symbolic step towards a new and ongoing partnership with the government to the benefit of both parties and feels like a rare statement of practical support towards a Western company operating in Africa.

MIIF’s 6% partnership in the ‘Cape Coast’ licenses including the licenses within ‘Joy Transporters’ indicates to us that MIIF wishes to support further exploration and development for lithium.

Edward Nana Yaw Koranteng, CEO at MIIF states:
"The Minerals Income Investment Fund of Ghana is a minerals sovereign wealth fund with an underlying objective of supporting the growth of mining in Ghana and providing a de-risking option for investors in the mining space in Ghana. The investment in Atlantic Lithium underscores this underlying objective and is indeed a watershed moment as this is our first investment in the lithium space globally. The Ewoyaa project is world class, with huge prospects in the other tenements under Atlantic Lithium.

"The acquisition of a 6% contributing interest in the Company's Ghanaian subsidiaries will support the funding of ongoing capital and exploration expenditure requirements across Ewoyaa and the broader Atlantic Lithium portfolio. This is just our initial investment in Atlantic Lithium and its Ghanaian subsidiaries. We hope to later invest in the value chain and the development of other by-products, such as feldspar, in line with the Government of Ghana's critical minerals policy.

"Our investment highlights Ghana as arguably the best mining investment destination in Africa in view of the options MIIF provides to investors. For us at MIIF, this is the start of a partnership with Atlantic Lithium beyond Ghana. We are confident that this initial investment will enhance and accelerate Ghana's efforts as an African critical minerals hub and to establish the country's position in the global EV supply chain."

Recommendation: We are raising our recommendation to Strong Buy from Buy. Today’s news is very much better than we had expected given recent speculation and statements in the Ghana press.

The deal with MIIF goes a long way to de-risking the project in our view and we expect Atlantic to receive its mining license in short order and for construction to start relatively quickly

*SP Angel acts as Nomad to Atlantic Lithium. Two mining analysts from share price Angel recently visited the Ewoyaa mine site in Ghana and drove onto Takoradi to check the quality of the road to port. Our intrepid analysts also visited the Ministry of Minerals Commission and MIIF, the Ghana Minerals Income Investment Fund.

[steeplejack] 08/9/2023 10:51

- MIIF to subscribe for 19,245,574 Atlantic Lithium shares ("Subscription") at a price of US$0.2598 (A$0.41 / GBP0.21) per share, for a value of US$5m (A$7.8m / GBP4m), to be held in escrow, equating to 3.05% of the total issued share capital of the Company.Its getting a 6% "contributing interest" for that £22.4m,so i'm not sure you can equate that to an equity stake of 6% for that payment.They've taken a declarable stake of just over 3% for £4m.No premium paid for size which is a bit of a steal.

[sipptrader88] 08/9/2023 10:36

Our share price value is 58p........

If MIIF get's 6% for £22.4m then 100% ALL is worth £373m If our current market cap is £150m surely that means our share price is 58.4p

Anyone else care to check my maths?

[steeplejack] 08/9/2023 10:34

Company seem to be suggesting that ML could be awarded before the end of Sept.That'd be a bummer Bertie.

[albert35911] 08/9/2023 10:25

You must be kidding,plenty of sellers to sell for their 4p gains

[steeplejack] 08/9/2023 10:24

The excitement at that presentation was clear.AL have barely scratched the surface as far as the prospect is concerned having only drilled around 3% to date.Piedmont is the monetary backbone but with money from the Ghanian mineral fund supplemented by funds derived from an offtake partner (currently being sort) financing is prospectively well in hand.Production facility up and running by first quarter 2025.

[ukgeorge] 08/9/2023 10:22

Roll on these getting back to 30p pretty soon.

[sphere25] 08/9/2023 10:02

In for a quick trade here. There was a buyer in size at 23p, then a little surge higher where the price couldn't breach 25p. The price came back and buyers in size have mopped up at 24p and now another go at 25p on its way.

Volume is interesting here with 6.5m traded (without delayed prints) in the first two hours alone. IF this continues and volume can at least double from here then it has a chance of pushing on for a lob into a spike.

Very high risk sort these so a stop under 23p if wrong.

Let's see if the buying continues.

All imo
DYOR

[ukgeorge] 08/9/2023 09:57

Atlantic are presenting at the moment on this link

[steeplejack] 08/9/2023 08:46

Hopefully this will establish a base from which the share price can steadily recover.The Ghanian Mineral fund have taken a stake at a price that is around a third of the share price that prevailed when interest was first muted.Canny dealing then :).Not really a surprise.There are lock in periods.A bit surprising,will the mineral fund be trading in due course!There are warrants with a strike price around the 30p mark and they should be in the money pretty swiftly i reckon.At least this goes a long way to discredit the shorters who punctured the price a year back when it was mid 30s.

[neo26] 08/9/2023 08:44

It will be a bit dodgy if ML issued next week. Maybe they wait few weeks. ;-)

[goodgrief] 08/9/2023 08:36

Can't believe we were back at levels last 2 years ago!