Bacanora Lithium Share Discussion Threads

[temmujin] 10/4/2017 07:32

transformational RNS..should hit 100p today

[curnic1] 10/4/2017 06:43

From LSE board:
Aim-listed lithium developer Bacanora Minerals has agreed a long-term supply agreement with Japan’s Hanwa Corporation that will see the Tokyo-based trader buy up to 100 per cent of the company’s processed output from its planned mine in Mexico.

Hanwa, a big steel trader with a growing lithium business, is expected to make an initial 10 per cent equity investment in Bacanora in coming weeks, adding to an investor base that already includes BlackRock that has a near 11 per cent stake in the company.

Growing demand for lithium, which is used in batteries for electric cars, has boosted interest in mining developments as prices of the raw fuel have risen.

Bacanora plans to complete a feasibility study on its Sonora lithium deposit in Mexico in mid-2017. It said that the capital expenditure bill for developing the deposit was expected to be at least $250m to be financed by a combination of debt, project financing and equity.

That companies such as Hanwa are prepared to sign so-called offtake deals with developers long before production begins highlights how lithium has captured the mining and trading industries’ imagination.

Prices of lithium carbonate, or the processed ore, have roughly doubled since 2015, according to analysts at investment bank Liberum. Some fear, however, that a speculative bubble could potentially form in the key battery material, with more small-cap miners turning their attention to deposits.

Bacanora, which does not yet have any revenues, has attracted big-name backers on top of BlackRock and has a £91m market capitalisation. M&G Investments owns just under 8 per cent.

Cadence Minerals, chaired until 2015 by the colourful David Lenigas of “Gatwick Gusher” fame, is still the mine developer’s biggest investor with about 19 per cent of the shares and a claim on the some of the licences.

The company says the Sonora deposit could produce as much as 35,000 tonnes of lithium carbonate annually by between 2021 and 2022 or potentially more than 10 per cent of forecast world consumption.

Under the strategic partnership with Hanwa, the Japanese company will help secure debt financing for Sonora, as well as taking between 70 to 100 per cent of the lithium carbonate from the mine if it reaches production.

“This partnership with one of the world’s leading battery chemical traders is transformational for Bacanora,” said Mark Hohnen, Bacanora’s chairman. “It significantly reduces the overall risk profile of the project.”

The deal for Hanwa to take a stake in the company should add more than £10m to Bacanora’s cash balances.

The company also owns a 50 per cent stake in the Zinnwald lithium deposit in Germany, where a feasibility study is also expected to start this year.

[runthejoules] 30/3/2017 17:28

Secker had better not be too greedy and get a deal out of these offtakers out or Albemarle et al are going to eat his lunch. Hell, even EMH could drink our milkshake from AAAAALL the other side of the room.

[simonsaid1] 30/3/2017 16:43

What did, ifthe?

The price is oscillating in the same range until the offtaker announcement. Some of the buzz at EMH is cross-pollinating too.

[ifthecapfits] 30/3/2017 16:39

Well that did the trick!

[ifthecapfits] 30/3/2017 12:46

All gone a bit quiet. Whats the next expected news?

[ifthecapfits] 21/3/2017 16:17

.-- .... .- - / -.. --- / -.-- --- ..- / -- . .- -. ..--..?

[simonsaid1] 15/3/2017 16:22

Why do people do that on this forum?

[qackers] 15/3/2017 15:45

ifthecapfits. Ok. With you now.
simonsaid1. That thought did cross my mind.

Mark Honnen did a cracking job with Kalahari a few years back so I am hoping he can do the same here. He is very well connected

[ifthecapfits] 15/3/2017 15:28

fair point well made.

[simonsaid1] 15/3/2017 15:25

Possibly the fact that director is allowed to buy is a sign that the offtaker deal is still a way off. If it was imminent then presumably directors would be unable to buy due to insider trading regs.

[ifthecapfits] 15/3/2017 15:13

qackers - that's how i read it too. Hence the question mark - you'd think share price would rise.

[qackers] 15/3/2017 13:43

RNS reads to me that Mark bought 120000 shares in the market. Are you guys reading it differently?

[steeplejack] 15/3/2017 11:30

Every man and his dog have got share options.I feel left out .

[andrbea] 10/3/2017 12:54

So why don't bcn give Suay Chin International Pte Ltd a ring? Beginning less & less to believe in bcn's mysterious Asian offtaker (always promised, never materialises)

[hutch_pod] 10/3/2017 12:21

Interesting snippet

h t tp://www.proactiveinvestors.co.uk/columns/sp-angel/27271/today-s-market-view-asiamet-resources-kodal-minerals-strategic-minerals-tri-star-resources-27271.html

Kodal Minerals* (LON:KOD) 0.325p, Mkt Cap £17m – Chinese offtaker preparing to buy £4.3m of stock at 65% premium following initial £0.5m investment at 30% premium

• Suay Chin International Pte Ltd which has strong support from Shandong Mingrui Chemical Co Ltd has taken an initial stake in Kodal Minerals.

• The Chinese group ‘has’ paid for £500,000 worth of shares at a price of £0.003 per share highlighting its interest in the company and not just the Bougouni lithium project.

• Suay China is now undertaking due diligence which, if successful, will increase its shareholding in Kodal to 20% of the company at a price of £0.0038/s for a further cash investment of £4.3m representing a 65% premium to yesterday’s closing share price.

• Kodal and Suay Chin International have agreed to start talking about an off-take agreement over 20% of the spodumene concentrate to be produced from Kodal’s Bougouni project.

• Kodal is about to recommence drilling its Bougouni lithium project in Mali with similar-ish results to Birimian Limited’s results at its closely named and more advanced Bougouni Goulamina project in Mali.

• Anecdotal evidence indicates there is a supply shortage of lithium feedstock in China which is causing prices to rise dramatically particularly for smaller contracts.

• This appears to be causing Chinese companies to move quickly to take stakes in promising, higher-grade, lithium projects around the world where processing routes are reasonably well defined.

• Lithium Carbonate prices which were generally considered to be around 6,500-8,500/t last year are now reported to vary between $10,000-18,000t for larger contracts and $18,000-21,000/t for smaller contracts in China. We suspect the larger contracts are still being priced towards the lower end of the range but Tesla’s entry into the market for its new Gigafactory and rising demand in China, Japan and South Korea is raising prices significantly for smaller contracts.

• Morningstar estimates a potential supply shortfall of 100,000t by 2025 as lithium demand rises 16% each year till then

Conclusion: The subscription shows how serious Chinese companies are in securing future lithium supply and confirms our view that the Bougouni area of Mali looks like is may make a meaningful lithium production centre in future years.

Shandong Mingrui has previously offered to buy Birimian Limited for A$107.5m but the deal fell over when Shandong failed to deliver A$10.75m into an escrow account in January.

Suay Chin International Pte Ltd was set up in January this year specifically to act as a trading group for the supply and source of lithium feedstock into the Chinese Lithium market.

The Suay Chin team is said to be well connected, funded and with relevant industry experience and to have support from key Chinese manufacturers.

The statement says that Suay Chin has strong support from Shandong Mingrui which is a long-term supplier to existing lithium carbonate producers in Shandong Province.

The race to secure feedstock materials for battery producers is hotting up with Chinese companies moving to grab higher-grade lithium projects and prospects. This follows China’s recent multi-billion purchase of the Tenke Fungurume copper, cobalt mine in the DRC.

[simonsaid1] 06/3/2017 19:22

Haha thanks but I did read it before posting, I get news alerts from Proactive Investors.

Anyway happy evening folks.

[steeplejack] 06/3/2017 19:00

And me......poor Simon,here's a taster...

PLC’s (LON:BCN CVE:BCN) Sonora lithium deposit in Mexico are exceptional at current prices reckons broker Liberum, which has a target price of 120p on the AIM-listed explorer.

Recent reports from three of the large producers have pointed to lithium carbonate prices at US$12,000/t, close to double the price two years ago.


I agree with bookwormRobert.The exercise price of these options is near "in the money ".
Not so much an incentive as throwing another bone for them to chew on.Reminds me a bit of Patagonia Gold.Yet,lithium rules ok so may as well turn a blind eye....for now.

[simonsaid1] 06/3/2017 17:06

Tried that, doesn't work! Your link there doesn't work either, unless copy and pasted.

[adobbing] 06/3/2017 16:48

If you type hTTp it has the same effect and your URL shows up as a hyperlink;

[simonsaid1] 06/3/2017 16:02

Liberum Capital re-iterates Buy advice with 120p target price. Nice article in Proactive Investors:

Bacanora Minerals has 'exceptional' lithium deposit at current prices says broker

hXXp://uk.advfn.com/www.proactiveinvestors.co.uk/companies/news/174325/bacanora-minerals-has-exceptional-lithium-deposit-at-current-prices-says-broker-174325.html

Replace 'hxxp' with 'http' (to get around ADVFN filter).

[cyfalafwr] 03/3/2017 15:25

A nice little earner for some but can't complain I have a paper profit of 22% over a couple of years...lol

[simonsaid1] 03/3/2017 10:24

Ha - so the share price suddenly dips the last few days for 'no reason', and then we hear of a stock option grant. I wonder if there's a connection...