Capital Metals Share Discussion Threads

[roughandtumbleone] 08/1/2024 07:37

So I wonder if now people and investors will see that the reaction Friday was not dissimilar to the reaction I'd have expected if discussions with the LB Group had terminated, instead they've openly stated those discussions are continuing and we also know the MOU was with the lawyers in the final stages of making it legally binding.If LB were dragging their heels and other suitors have enquired, why would Cap Mets sign an extension of exclusivity... they wouldn't and in a nutshell they've actually strengthened their hand, not weakened. Read what they've stated...Discussions with LB Group (002601:SHENZHEN; Market Cap: US$5.8 billion), the world's leading manufacturer of high-performance titanium dioxide pigments and sponge, are continuing on a non-exclusive basis following the Board of Capital Metals' determination that it would not seek to renew exclusivity beyond 31 December 2023. This decision was made in light of additional interest received to fund the Project into production following the positive developments in the second half of 2023 leading to the full reinstatement of the Industrial Mining Licences ("IMLs") announced on 1 December 2023.

[jimbomorry] 05/1/2024 19:04

It would have been good to have had an update on the harbour lease today. Presumably this should be a quick win because its negotiated with the Sri Lankans? Was a bit frustrated not to have an update on this because it would have been a good confidence instiller.

[cyberbub] 05/1/2024 17:10

Many of the sellers (including the delayed 420k at 3.2p) will have been stopped out by the intraday RNS when they weren't watching and able to evaluate it properly. That's why I don't use stops. I must say I don't understand why the management had to announce this intraday....

[roughandtumbleone] 05/1/2024 16:53

I think there's going to be some disappointed people who have sold into the artificial drop. Every part of todays announcement gives me confidence that what is finally announced for a JV will be far better than what had been previously announced as the MOU so as far as I'm concerned, it's now an opportunity to buy at a significant discount to the placement at the end of December.

[roughandtumbleone] 05/1/2024 15:34

CzarExactly. Raised £1.3m at 4.25 and the TR1s clearly show the level of interest.Who's to say that the LB Group and other interested parties don't opt to take a stake in the open market as clearly once the agreement is announced the rerate nearer to the NPV will see a huge uplift potential for any stakeholder

[chrisdgb] 05/1/2024 15:18

This should be up.........

[czar] 05/1/2024 15:12

Gentlemen I agree this is not bad news, it is actually positive. The Company's negotiating power is much stronger now and we have another party interested. This reaction is just plain wrong imho so I'm buying more at a big discount to the recent placing.

[roughandtumbleone] 05/1/2024 14:36

Took two chunks and in total another 400kI don't see this as bad news and I'm sure it's not going to take much to turn this the other way.

[cyberbub] 05/1/2024 14:36

Yes I was thinking the same, hopefully our HNWI Aussie investors will take advantage of this drop... There hasn't been any stampede for the exits on this news either... Hopefully in a month or two we'll have an agreement signed.GLA

[roughandtumbleone] 05/1/2024 14:14

Well that's the signal for me to buy more. They've opened up talks to get the best deal and considering the original MOU was for a 100% offtake, 100% funding of capex for the mining and 50% net profit, I think CapMet are also going to want an upfront payment as they can and will increase the resource available as they have the right to acquire the adjacent licences.A drop of 18%... bring it on. Let's see if those who actually purchased at 4.25 also feel the same

[cyberbub] 05/1/2024 13:49

As if by magic an intraday RNS. LB no longer exclusive, company are looking at other partners for funding also. 'Sell on news' crowd come out - but it seems very clear to me that it's a ploy to put pressure on LB to complete the agreement ASAP! :-)

[jimbomorry] 05/1/2024 13:12

Roger that CB. Wonder if we'll still be able to top up at that point, or if all the liquidity will go.

[cyberbub] 05/1/2024 12:35

If we get the RNS confirming the Chinese deal very shortly then I think we'll make a run for 10p. Of course the inside traders in the market will get wind of it sooner, so keep an eye on the share price and volume...GLA NAI

[jimbomorry] 05/1/2024 08:34

Thanks RnT. Just also looked at the map of the license blocks on the CMET website. Thanks for clarifying.

[roughandtumbleone] 05/1/2024 00:14

It's also globally one of the highest grade mineral sands projects ... I would love to read about the JV, full capex being funded, 50% net profit payment + CapMet to expand the resource and thus significantly increase the NPv.Capital Metals (AIM: CMET) is pleased to provide an update on the Eastern Minerals heavy mineral sands project in Sri Lanka (the "Project"), one of the highest-grade mineral sands projects globally, which is closely approaching the final investment decision for development.

[roughandtumbleone] 05/1/2024 00:10

I can see why you'd ask but it's the project area ... see below:Capital Metals plc (AIM: CMET), a natural resources company focused on the development of the Eastern Minerals Project located in the Eastern Province in Sri Lanka (the "Project"), one of the highest-grade mineral sands projects globally, is pleased to announce the first half of results from the late-2021 auger drilling programme.

[roughandtumbleone] 04/1/2024 04:55

The interesting play for me is also reading and listening to the fact the shenanigans have been ceased and the licences ratified for CapMet and in a presentation it is stated just how large the potential resource is adjacent to the current licences and the fact they have already applied and have first refusal on licences that touch the current licences, so again the upside is really high.If as expected a full capex JV is signed with 50% net profit split, they could look at either extended the mine life or increasing the annual output. Either way, the growth for resource and share price valuation is exponential.

[cyberbub] 03/1/2024 21:54

And it's at pretty much the same market cap today...

[roughandtumbleone] 03/1/2024 17:05

Below is taken from the Proactive article from 2022 and the only difference now is the JV is literally and potentially about to land on our doorstep.The fact the resource can now easily be ungraded a NPV of 155m and generating net profit of 260m over a 10 year mine life with the currently resource shows how significant the rerate could be. -------In this context, the current valuation ascribed by the market to Capital Metals looks ungenerous to say the least. The net present value of Eastern Minerals – even without potential further expansion – stands at a wholesome US$155mln. Over its ten year life the project is likely to generate a net profit – yes, net – of US$262mln.And yet the market capitalisation is a mere £10mln.What's going on?The Sri Lanka discount is one factor, but as we've mentioned, although Sri Lankan politics has been turbulent, if anything that unrest has only served to increase the appetite in-country for the project to be developed. The IMF have now stepped in to help, and the situation looks to have stabilised. In addition, there's no real precedent for sequestration in Sri Lanka politics, and the government itself is running projects similar to Capital Metals' nearby.The other factor at play might be a discounting of the share price in anticipation of any equity raise to get the project into production.But, while it's impossible to rule anything out, Capital Metals' clear intention is to get the project up and running without the need for any significant further dilution.What exact form that might take remains open to question, although offtake and debt are likely to play a role, and there may also be some form of strategic financing at the project level. It's noteworthy too that some of the potential partners Frayne has been talking to reckon that the project can actually be developed for less than is currently budgeted.Whether that's true or not, it remains conceivable that once the funding doubts are removed the shares will re-rate substantially, as the market looks to close the gap between that US$155mln net present value and the £10mln market capitalisation – and that's before considering any upside from anticipated expansion of the project.How much of a re-rating is on the cards will depend on the kind of deal struck, but in a tight mineral sands market with a robust project and plenty of managerial and technical expertise to back it up, the potential is surely significant

[cyberbub] 03/1/2024 16:21

Yes that's right.Two more TR-1s appeared, including a new holder, Roman Resources, seems to be another private Aussie investor. Declared late which is naughty. Still good news overall!

[roughandtumbleone] 03/1/2024 16:03

Just to clarify Bart owed 5.9% previously and increased their holding to 9.5%

[cyberbub] 03/1/2024 15:27

Agreed, private funds don't take multimillion stakes in small companies without doing their research. As you say the LB agreement has officially expired, but as Capital have something LB want I don't imagine this will be a massive issue, especially if it's due to be signed in the next couple of weeks maybe :-)

[roughandtumbleone] 03/1/2024 14:15

So Bart Properties have taken 9.5% beinf 29.333m shares.The date of which the LB Group JV has expired albeit it was stated after the licences were reinstated and ratified this may take slightly longer. Either we get an extension or better still, confirmation LB Group are pushing ahead, signed and taking the 100% offtake along with all capex. This will be company making.Those who participate in the two tranches of fund raise would have wanted reassurances regarding the LB and as stated, it is my understanding that LB needed assurance CAP METALs was adequately funded to cross the JV line.

[cyberbub] 03/1/2024 11:31

Making a recovery back towards fair value now?