European Metals Share Discussion Threads

[bountyhunter] 19/4/2017 14:42

on the cobalt side re rechargeable battery mineral requirements the best play I could find on the AIM market is SML but clearly highly speculative at this stage so just a toe in the water there...


nai, dyor etc

[frankie83] 19/4/2017 12:00

I think this is a steal at this price..

[bountyhunter] 19/4/2017 11:32

o/t bwr/porsche - this looks interesting and is aim listed however the share price seems to have crashed recently - any ideas why - dilution or funding issues? maybe way to speculative?

[steeplejack] 19/4/2017 11:29

I'd be surprised if EMH didn't wrap up an offtake agreement fairly swiftly and once done,that'll stabilise the price especially because it's more than likely to include an equity purchase option like the Hanwa deal with BCN.Drop the BCN price excessively and Hanwa will be in buying their further 10%,that curbs excessive volatility on the downside.

[diesel] 19/4/2017 11:11

I'm surprised at the fall, or am I? This project is very attractive, right product right geography. But at this point in the development large cost numbers are going to come up as mine development ain't cheap. It is normal for hot money to chase the explorers and as we move towards the costly mine building, that money moves away, but for me this is still hugely attractive. They will be talking to potential customers and possible partners to develop this business, what we have to do is to work out the investment value at different stages. I wouldn't be surprised to see this in the 50-60p area for a while before slowly creeping up again, although any offtake or partnering announcements will create a spike.

[herschel k] 19/4/2017 10:44

quite pleased I managed to add at 57.5p this morning...........

[porsche888] 19/4/2017 10:42

I have been looking for Cobalt,, My research steered me to aim listed Ortac Resources (OTC) they have near term high grade production play in Zambia through Zamsort ,, the asset is a large copper cobalt play,,, they apparently just need some further funds / about $5 million to get into production.... this is the only play I can find on AIM.... hope this helps

[andrbea] 19/4/2017 10:39

Good interview, nice to hear that 2017 is the year where they use the 'live' numbers from the PFS to further their discussions with candidate investors/offtakers.

[scrutable] 19/4/2017 10:38

Is cobalt not found only as an adjunct to copper?
I do not believe it makes sense to search for it directly,except perhaps to search accumulated tailings from copper mining for the residual cobalt. I have looked as you are doing, then given up.

[bountyhunter] 19/4/2017 09:55

Hi bwr, all I could find was this:



not all that helpful though I'm afraid, heard something about the Chinese buying up cobalt resources so maybe they will be onto EMH for the lithium at some point also!

[bookwormrobert] 19/4/2017 09:38

Hi Bountyhunter! I've also been looking for cobalt companies to invest in. Very difficult. Found nothing on LSE/AIM. There are a couple of specialist explorers on TSX, but far from convinced they'll ever make it to production. All suggestions welcome!

[bountyhunter] 19/4/2017 09:31

bought in this morning - I've been watching for a while and waiting for a good entry point and don't think I'll get a much better opportunity than this!
also interested in cobalt producers but can only find GLEN on the lse which is such a massive company that although it's cobalt interest is significant is only a small proportion of the whole

[luisfrg] 19/4/2017 09:18

Fortunately i'm in ALT (20% up today ) helping make up the 20% fall here.....still plenty of upside there great update this morning fill ya boots 👍🏼

EMH is way oversold with forthcoming news imho

[herschel k] 19/4/2017 09:16

Why are people assuming there will be a huge fundraising?It might be quite small and combined with debt finance.......

[scrutable] 19/4/2017 08:54

My calculation is that the NPV of $540m is equivalent to 347p/share, making the share a potential x6 bagger. Will anyone else confirm or comment?

The share price is price drop is totally unjustified and simply fear of the fund raising, which must always have been expected.

[hutch_pod] 19/4/2017 08:46

Surely there is disappointment on the operating cost - previously mentioned $1500/ton, now $3483, and capex - previously $169m + $72m for tin, now $393m.

I'm not entirely sure this is like with like, but those are the headline numbers that hit me..

[steeplejack] 19/4/2017 08:36

The stark reality of a $400m funding requirement might of spooked the market but it's difficult to see why.Perhaps the absence of a "Hanwa" BCN type offtake arrangement has disappointed.For sometime,EMH have been uncannily imitating the past share price movements of BCN.BCN a year or so back fell from the 85-90p range all the way back to around 50-60p and have traded in a well defined range ever since only recently edging to the top of the range on the Hanwa RNS.This could prove to be a template for EMH's future share price moves.We've recently had punters digging up names of lithium explorers from all over the place,a sure sign that things have got a bit frothy.Yet,if you want a proxy for the lithium boom,economics,geography,valuation tell you EMH remains an excellent choice.Financial SummaryThe Cinovec Project yields a post-tax NPV (discounted at 8%) of $540 M and a post-tax Internal Rate of Return of 21%. When operating in steady state the Project achieves an operating cash margin of 59% and has an operating cost of $3,483 per tonne.

[andrbea] 19/4/2017 08:32

I see no reason for a 23% drop
Looks all 'in line' with expectations to me.

Let's hope Frankfurt's reaction is more logical.

[rafboy] 19/4/2017 08:21

Well, I have topped up twice this morning so far. Do we still have a mine with a significant deposit of lithium etc, yes we do! Massive overeaction to the downside is my view. May take a few days or even weeks to recover but I am sure it will. Wait for the offtake agreements that may well follow this RNS fairly soon.

[runthejoules] 19/4/2017 08:14

Back in at 55p. Which means the placing will be at... 54p.

[melody9999] 19/4/2017 08:12

I think the wording is offputting

PFS confirms potential low cost lithium producer

POTENTIALLY LOW COST LITHIUM CARBONATE PRODUCER

could be a low cost lithium carbonate producer.

The study highlights the potential for Cinovec to be the world's lowest cost hard rock producer of lithium carbonate


Much better if the RNS had been titled:
Successful PFS and direct move to DFS

Also, instead of 'potential' ....just write. 'subject to the DFS and project financing, EMH will be one of the world's lowest cost hard rock producer of lithium carbonate.

Does anyone have an informed view on the technical results of the PFS?

[runthejoules] 19/4/2017 08:08

Christ almighty - at least I didn't get stopped out. This should bounce right back... right?