Bacanora Lithium Share Discussion Threads

[tomthedom] 30/7/2015 08:50

Just out on Shareprophets

Thursday 30 July 2015 | The one stop source for free breaking news, expert analysis, and videos on AIM and LSE listed shares


EPIC code: BCN
Back Bacanora - lithium is the future of batteries
By Robert Tyerman | Thursday 30 July 2015


Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

Other commodities may be plunging and testing six-year lows. But lithium, in demand for storage batteries, mobile devices, electric vehicles and ‘smart electricity grids, is proving a notable exception so far, with prices paid by key Chinese users this year ranging from $5,000 (£3,205) to $6,500 a tonne, up from $3,000 at the turn of the century. That is why entrepreneurial Bacanora Minerals (BCN), backed by controversial David ‘Gatwick Gusher’ Lenigas’s Rare Earth Minerals (REM), is setting up a starter operation at its Sonora project in North East Mexico.

Altogether, Sonora is estimated to hold more than seven million tonnes of contained lithium, as it awaits a pre-feasibility study in the first quarter of 2016. Recent estimates suggest an indicated resource of 1.14 million tonnes with 2,200 parts of lithium carbonate equivalent (LCE) per million of earth, and a more tentative inferred resource of 6.3 million tonnes with LCE at 2,300 parts per million.

Rare Earth Minerals has 16% and Lenigas a seat in the board of Bacanora, quoted on AIM and the Toronto Venture Exchange. New chief executive officer Peter Secker says the company hopes to start production near the end of 2018 and sees planned initial annual output of 17,500 tonnes of LCE doubling in two years, to make Bacanora ‘the third largest lithium producer in the world’, and reaching 50,000 tonnes a year for the longer term.

Secker, former head of Canada Lithium Corporation who also developed a Quebec lithium project and sold it to the Lundin group, says he expects costs of around $2,900 a tonne at Sonora’s clay-based deposits, wholly-owned La Ventana and joint ventures Fleur and Sauz, where Rare Earth Minerals holds 30%. According to Secker, Bacanora, where serial investor Graham Edwards’ Igneus Capital has 17% and chairman and veteran sector player Colin Orr-Ewing has 12%, does not need to tap shareholders, either for the pre-feasibility or the bankable feasibility study later next year, since it has $10.5 million cash.

Shares in Bacanora, which lost £600,000 in the nine months to March, surged from below 30p in January to nearly £1 in May before settling back to 74.5p now. That values the company at £57.5 million.

Secker says the global market for LCE is now between 170,000 tonnes and 180,000 tonnes a year and is estimated to have reached ‘350,000 tonnes to 400,000 tonnes a year by 2025’. With 85% of total production coming from four companies, SQM, Tianqi, FMC and Rockwood (which merged with rival Albemarle for $6 billion last year), he suggests more industry deals are on the cards.

By Secker’s reckoning, a supply shortage should be building up just when Bacanora, which also has a borate (for glass and ceramics) project at La Magdalena in the same region, is bringing Sonora into full production. Not without risk, the shares could prove a potentially rewarding medium-term speculation, if the whole sector wins back some friends and Chinese demand holds.

hxxp://www.shareprophets.com/views/13917/back-bacanora-lithium-is-the-future-of-batteries

[footrot355] 29/7/2015 16:21

Does anyone have an up to date production price for converting Smectite to Lithium Carbonate. The only one I can find was dated 1985, which concluded that it was uneconomical to process this material, given the price of Li2CO3 at that time. The process tried then was very similar to what Bacanora propose now, roast/leach etc. something similar to the process used for recovery from pegmatite. I know the price now is a lot higher and this deposit may be economical to mine, but just what, currently, is a practical production price.

[tidy 2] 29/7/2015 13:56

Do BCN have a license to exploit their lithium?

[tomthedom] 29/7/2015 12:11

Interesting article about future demand.

hxxp://oilprice.com/Energy/Energy-General/Warren-Buffett-And-Elon-Musk-To-Spark-A-Lithium-Boom.html

[12bn12bn] 28/7/2015 11:37

HP
At AGM. At least two who attended have posted on lse so I'm pretty sure it is correct looking at who they were.
If you look at BCN latest presentation I did say when it came out no production date for lithium was given. I though 2017 at the time but looks like I was wrong.

[hutch_pod] 28/7/2015 10:15

Thanks 12bn12bn - when did DL say that, re intend to buy more rather than take up JVs?

[datait] 27/7/2015 23:02

back to 40p folk watch this space.

[12bn12bn] 24/7/2015 21:47

From REM AGM

DL said production 2018. When I told him that Colin (head of BCN) in one of video said Sonora Lithium production 2017, DL said it's good for him. I asked him "do you want to say it is possible 2017?" He said "no, no"

When asked what the in ground value (Sonora) was at the moment he said £50bill ($?).

We can buy up to 29.9 % of Bcn without having to make an offer and we intend to keep buying more there and directly into bcn rather than take up the JVs. He says no merger with BCN/Rem.

Plant man he did mention the processing plant. Large and simple basically , one side throwing out hydroxide and the other carbonate.

[senttothegallows] 23/7/2015 14:00

Wont take much for this to fly up there is nothing to level 2. a little more buying and we are away

[12bn12bn] 23/7/2015 08:51

dell1234
You obviously work for Shares today so share the wealth rather than posting pointless links that the majority cannot read.

"Is Rare Earth Minerals (REM:AIM) trying to force a merger with lithium explorer Bacanora Minerals (BCN:AIM)? That is the question doing the rounds in the City as the former continues to build a stake in the latter. Both companies have similar stock ..."

This is all we can see. You can obviously read it all. Copy and paste is so easy and don't come back sob story about copyright rubbish.

[dell1234] 23/7/2015 07:33

Two-page article on Bacanora in new issue of Shares today, interview with the new CEO.

[senttothegallows] 21/7/2015 12:13

Not too long ago REM were paying equivalent of £1. It will be interesting to see where it goes with the next set of drilling results I expect this will lead to a large reserves upgrade.

[rwauu] 13/7/2015 17:01

Does anyone knows when DL will cheerlead this stock again???

[senttothegallows] 13/7/2015 14:59

Don't buy anymore MM's are short of stock

[12bn12bn] 10/7/2015 11:18

Long way to go before production of borates or lithium. This is ok if you are a trader on small margins IMO.

[cambradjones] 10/7/2015 09:45

Up 10% on 40k shared traded???

[dosser2] 10/7/2015 09:44

Me too- we are on the up ahmie

[molatovkid] 10/7/2015 09:17

This is the bottom....cheap shares on offer guys! Bought some at 72p!

[mr j ahmed] 09/7/2015 08:45

tens of millions of shares coming owet of lock in this month soonest and sitting in millions of profits from a 33p placing price. easiest profits from a junks who is have no proven really value and still maybe 1 year away from pfs and maybe years away from bfs.

[12bn12bn] 09/7/2015 08:34

Over $12m cash at last count and the good thing is under Canadian regs they report financials every 1/4. Lots of smaller trades, only 3 over 20k but missed who they went to. You would have to guess REM picking some up on the cheap. No insider filing yet.

[steeplejack] 09/7/2015 08:18

With the PFS followed by a BFS,I guess the assumption is that a cash call could be in the offing.Also,the Chinese fall out is hitting all commodity related stocks.The volume in Canada yesterday was relatively heavy,so cannot be ignored.

[12bn12bn] 09/7/2015 08:12

Lots of shares going to TD Sec accounts in Canada last night. Back to square 1 but the big question is why the big drop.

[livinginhope] 09/7/2015 08:01

Could be another opportunity for REM to buy more BCN at prices well below what was paid recently?

[senttothegallows] 08/7/2015 18:11

Or less or recover or more low volume lets see