Bacanora Lithium Share Discussion Threads

[simonsaid1] 26/5/2017 15:26

Weird, that 17% is a single trade of 200 shares.

[runthejoules] 26/5/2017 15:11

How can it be up 17% in Canada & down half a % here? Why don't the Canadians just sign a w8-ben, buy this & make an instant 17.5%? Must be missing something!

[ifthecapfits] 26/5/2017 15:10

short TSX or buy here?

[ifthecapfits] 26/5/2017 15:07

hmmm. and down here!

[igbertsponk] 26/5/2017 15:06

Looks like that - equivalent of 101.4p

[ifthecapfits] 26/5/2017 15:01

is that right up 17% in Canada?

[hazelst] 26/5/2017 14:38

Good start in Canada.

[steeplejack] 25/5/2017 08:09

Happily,the price to get on board is going up.Hanwa took an initial stake at 82.5p,Capital are paying 86p and as you say Bookworm,it's at a premium,not much of a premium though.I guess they've done an average of the last 15 days prices on the back of an envelope.

[bookwormrobert] 25/5/2017 07:31

RNS.

Very good news. That rarest of rare things on AIM, a fund raise at a premium to today's share price!

[simonsaid1] 11/5/2017 09:49

For a smallcap miner this isn't a long period of silence, we did just have news of a 100% offtaker and a new 50% interest in a huge mine! If you want to know the current state of play, Peter Secker did an interview with the Investor's Chronicle, available for free on their podcast or in text form on their website (subscription required for website).

BCN are now heads-down working hard on the DFS which should be complete by the end of the year, and looking for institutional shareholders to take on additional shares. There will be some dilution to increase liquidity, which should mean the shares become more reactive to news events and begin to reflect the incredible value here.

If you read the following report on Cadence and look for the parts on Bacanora, you'll note the enormous amount of relatively derisked potential here:



And specifically:

'Edison estimates that Bacanora’s total economic interest in Sonora is 82.52% (effectively a time-weighted average of its 100% interests in the underlying concessions and its 70% interests). On this basis, the NPV of the project (US$542m) equates to US$3.63 (£2.81) per Bacanora share on an attributable basis (cf Bacanora’s share price of 85p at the time of writing).'

As I understand it, it is normal for a small miner to trade at a discount to NPV during exploration and FS, and move to a premium once production starts. So £3+ per share is not unreasonable in the next few years.

[ifthecapfits] 11/5/2017 09:29

All gone a bit quiet again - to be expected with a small emerging company I suppose - whats peeps views on the next news to take us to the next level - so to speak?

[simonsaid1] 08/5/2017 10:33

Nope I think you covered it well.

To expand on the share price point, he said that the top 6 shareholders hold 55% of the stock which is preventing significant movement, so diluting shares will, somewhat counterintuitively, restore liquidity and hopefully peg the share price more closely with company performance (as opposed to the dull stasis it's been stuck in for some time).

I do hope he's right!

He also addressed fears of a 'lithium bubble' saying that, simply, current producers cannot fill the gap between supply and rising demand, even as it stands now. This means that new suppliers like BCN and EMH et al are well placed, and that there's more space for additional new suppliers/mine projects to come online and still, demand would outstrip supply, ballooning the price per tonne. This bodes well for the lithium industry as a whole and, if you're happy with demand projections (I am, they're actually not barmy), this supply deficit can be seen as a significant de-risking factor for any viable early stage lithium project. The 'bubble' warnings seem to underestimate how long it takes to identify and acquire a resource and bring it into production. Lithium is abundant, but not in high concentration, so it's not economical to mine it from, say, broccoli (Secker's example!).

[glawsiain] 08/5/2017 10:15

No problem. My main takes from it were:

- there will be equity dilution late this year as more institutional investors come on board. Will increase liquidity
- lithium market is going to double in demand in 5 years and no existing miners can fill that gap.
- BCN is targeting the market for more expensive forms of lithium - such as lithium chloride and pure metal. In Germany, in particular, they have all the extra resources within 20km of their mine.

Simonsaid - anything else you took from it?

[runthejoules] 08/5/2017 10:09

Actually the extra BCN shares placed by the offtake agreement came onto the market Friday, so that might explain the drop last week. Now, nobody sell and we should be up again. KOD's just signed an offtake agreement too with a placing at a premium, so we know the lithium will all be flying off the shelves. Would like some news about Zinnwald & how production is going in Sonora though.

[simonsaid1] 08/5/2017 10:06

Thanks glawsiain - I am a subscriber and didn't see that yet, listening now! Very grateful for your post.

[glawsiain] 08/5/2017 09:50

Have to be a subscriber but there is a podcast with Peter Secker here:

[uapatel] 04/5/2017 14:08

Little more of drop back, but volume looks light. Took the opportunity to add further (and in my cay bring my average down.

[runthejoules] 02/5/2017 19:43

WTF was that last minute drop about? tree shake I presume?

[investorgadget] 02/5/2017 16:58

The most recent broker note by Liberum, released after the offtake agreement was announced, states "With off-take in place the company is now in a strong position to deliver debt finance for c.50% of stage 1 capex (c.US$120m), once the bankable feasibility study is complete in Q3'17"

Is the other 50% already funded, what about stage 2? When do we expect more equity funding to take place?

[runthejoules] 26/4/2017 18:06

According to this commentator TSLA is going to need an alternative supplier of lithium in 2018. Doubt more than the test plant will be up & running, but if Trump's not building a wall, maybe, at some point in the future, Elon will want to think again about constraining himself to be 'all-American'...

[runthejoules] 25/4/2017 17:48

Tiny pickup today. I'm wondering what all that's about...

[andrbea] 25/4/2017 15:21

question: are bcn satisfied with just Hanwa or do they want other offtakers too, on other parts of Sonora? Can multiple offtakers work there side by side? Perhaps sharing the processing plant?
Hanwa was up to 35k tons in stage 2. Could another offtaker eg Panasonic) arrive (on an adjacent property) and do the same?

[ifthecapfits] 25/4/2017 15:13

The off take agreement was most welcome - but I was surprised at the relatively mooted response. Whats the next catalyst to get this moving to new highs? Thoughts.

[andrbea] 25/4/2017 15:11

blue today
kdnc red