Bacanora Lithium Share Discussion Threads

[simonsaid1] 15/12/2016 14:39

Well that makes for encouraging reading! Tempted to keep topping up while things are so cheap, but I suspect it'll be a long time till the stock price starts getting closer to that higher NAV, and even longer before an appropriate premium... and all that waiting time has opportunity cost in terms of other shares and deals. I suppose this is still a 'buy and forget' holding.

[andrbea] 15/12/2016 13:57

On LSE board (rem)

'Strong lithium market can only be good news for Bacanora, says Numis

The City broker also notes that the fall in the value of the Mexican peso should help the economics of Bacanora’s Sonora lithium project

First production at Bacanora's Sonora lithium project is slated for 2019

The strong lithium market bodes well for Bacanora Minerals Ltd (LON:BCN) and could almost treble the explorer’s net asset value per share (NAVPS), so says City broker Numis.

Bacanora’s exposure to the metal comes from its Sonora lithium carbonate project in Mexico.

Recent reported spodumene (an important source of lithium) prices have risen 38% to US$905 per tonne, while lithium carbonate pricing has hit the US$10,000 a tonne mark.

Those figures come against Numis’ long term pricing assumptions of US$660 per tonne and US$6,500 a tonne respectively.

With the rise in lithium prices, Bacanora’s net asset value should follow in the same direction, Numis suggests.

“Running the current contract price of US$10,000 per tonne through our model would increase our NAVPS for Bacanora from £1.30 per share to £3.33 per share,” the broker said in a note.

Numis also notes that the post-US election fall in the Mexican peso should provide even more of an uplift, given that around 80% of the operating costs and 70% of project capex at Sonora are peso denominated.

Bacanora is due to complete a feasibility study at Sonora in the first quarter of the New Year.

Numis expects the mine to initially produce around 17,000 tonnes of lithium carbon a year, scaling its way up to 35,000 tonnes.

Construction at Sonora is scheduled to be completed by the end of 2018, with first production slated for 2019.

Shares in Bacanora were down slightly at 70.5p.'

[citywired] 14/12/2016 23:37

Trust me, unless they full appraise and release a competent independent report, nobody's buying。 REM's offer looked like the blind leading the blind.

[andrbea] 09/12/2016 11:31

If a Chinese/Korean consortium could play sugar daddy, bcn and rem would have to cough-up less. That would be how I would raise the capex :-)

see recent example (3 days ago):

[rossowheels] 06/12/2016 17:28

It remains unclear how the CAPEX will be financed.

[qackers] 06/12/2016 14:58

Bacanora Minerals unique in the lithium space, says Liberum

08:21 06 Dec 2016

It is the only aspiring producer currently sending lithium carbonate samples from an operational pilot plant.

Bacanora Minerals unique in the lithium space, says Liberum. It is the only aspiring producer currently sending lithium carbonate samples from an operational pilot plant to potential customers.
---------------------------------------------------------------------------------

Bacanora Minerals Ltd (LON:BCN, CVE:BCN) is well worth a look, reckons City firm Liberum, which has started covering the shares with a 'buy'.

The firm owns one of the largest known lithium clay deposits in Sonora, Mexico, notes analyst Richard Knights.

It is the only aspiring producer currently sending lithium carbonate samples from an operational pilot plant to potential customers and finalised off take agreements ahead would provide a good base for financing.

This is significant as there is no shortage of lithium juniors, but tangible supply is limited as new projects require offtake to get financed.

A less than two year build time means the mine could be up and producing by the second half of 2019.

It is unique in the lithium space in that it can be quick to market new hard rock supply but is significantly lower cost, competitive with brines.

The broker has set a target price of 120p for the shares, which is a long chalk from the current price of 78p.

Liberum's target price is 75% of NPV (net present value).

The mining group is targeting the completion of the Sonora lithium carbonate feasibility study for the end of the end of the first quarter of 2017, along with furthering discussions with potential lithium carbonate customers.

[citywired] 30/11/2016 16:23

I heard there was no proper mention yesterday about the breakdown of talks with Tesla.

Anyone got further colour?

[leonasdad] 29/11/2016 22:38

Why don't sum1 propose to Jeremy the ringpiece Corbyn to borrow 3.4 trillion pounds and get UK to do a strategic deal and fast track good bios home care robots & clear up inner city air in all the inner cities, and when it runs out, use MSR energy to split H20 for H2 cars in 100yrs time?

[hutch_pod] 29/11/2016 22:30

Yeah, or Japan of course..

[ifthecapfits] 29/11/2016 16:52

Come on Bac - announce a deal with the Chinese.

[parthus] 25/11/2016 09:15

DL is no longer a board member and does not run the company.
I brush my teeth regularly and try and avoid the plaque !

Save your vitriol for a company you are invested in.

[parthus] 25/11/2016 00:22

A plethora of Ha ha's predicates hyenas in tandem, but rwauu is flying solo !

[rwauu] 24/11/2016 22:58

Done some reading about BCN on boa

[rwauu] 24/11/2016 22:30

It is game over for BCN. No Tesla deal. Pure lifestyle paper miner. Only idiots can buy this rubbish. I think shares did not went down more beacause many people did not realized what they were reading in RNS. NO TESLA DEAL. NO MONEY!!!! NO PNE CARE ABOUT BCN CLAY ACREAGE. there are serious li miners that produce lithium as we speak. BCN on other hand produce zero. Perhaps test samples. You know, the ones you can put on display and pretend that it is a real thing. Ha ha ha!!! Shoters dream!!! BCN will be crushed to death in following weeks. I believe Monday will be awesome death sentence for BCN. Even tomorrow will be nice, perhaps revisit to 40???? Ha ha ha!!!

[citywired] 24/11/2016 22:22

They need to address whatever weaknesses there were in the Tesla breakdown.

[steeplejack] 24/11/2016 11:59

Yes,I saw that post too.Sadly,it doesn't tell us much but you expect a bit of flannel from the PR folk.This appointment was made in the 18 Oct.We better hope that Jamie has got things cooking elsewhere.Board AppointmentBacanora, the London and Canadian listed (AIM: BCN and TSX-V: BCN) lithium exploration and development company, is pleased to announce the appointment of Jamie Strauss as a Non-Executive Director of the Company, subject to normal regulatory checks. Bacanora is currently working towards completion of a Feasibility Study at its Sonora Lithium Project in Mexico ("Sonora"), in tandem with advancing offtake discussions with potential Asian and other international partners as part of a wider project finance strategy. Having raised in excess of US$1bn in recent years for natural resource projects spanning the globe, Mr. Strauss' proven ability to engage with institutions in North America, Australia and Europe to secure funding will be highly valuable to Bacanora in this process.

[citywired] 24/11/2016 10:54

There is no way hiding this.

Tesla are a market leader in both electric cars as well as investing in renewable energy. This is a loss of confidence in execution of their strategy, having an industry darling as a key client is big. Losing that key client is big.

Do we even need to walk down the fundamental risk? Future sales and earnings are unsecured, and against that come with it increased financing difficulties.

I am growing critical that they are actually spinning this as some preferred China play. What, they don't have enough strength to build a portfolio of clients that should include both Tesla and the Far East?

Be open and honest about the problems encountered, especially with something as big as the Tesla deal.

If they don't, it's a SELL and we can sit back as we watch the bankers take them to the cleaners when they come to market for refinance.

[steeplejack] 24/11/2016 10:25

REM takeover proposal,failure to delist from TSX,management changes,all becoming choppy here.

[steeplejack] 24/11/2016 10:17

Non- Executive Chairman, Colin Orr-Ewing commented:"This Supply Agreement with Tesla represents a vital and monumental step forwards in the commercialisation of the large lithium resources that the Company holds, together with its partner REM, in Northern Mexico. We anticipate this contract to accelerate rapidly the development of the Sonora Lithium Project, which we expect will prove to be invaluable in an increasingly lithium hungry world."Aug 28 2015I suspect that the Trump effect might have compromised the Tesla arrangement.Yet the company can actively seek Asian partners without any associated complications and that's restricting the fall out here.It's all rather opaque though.