Ironridge Resources Share Discussion Threads

[jlondon] 14/9/2021 17:19

IRR EWOYAA LITHIUM "IS THE MOST ECONOMICAL" HARD ROCK IN THE PLANET.
Toro_AIM shows a screen shot of the chart for IRR [light green dot for direct shipping ore] with the left side showing Average Opex vs light blue dot like Piedmont,PREM, Nemaska which indicates DMS with FLOATATION. Dark blue dots are for Soyona, KOD which is floatation.

PIEDMONT DEAL WITH IRR
Piedmont would provide US$102m which will pay for the full capex [capital costs] + studies etc. Why? Only IRR*s Ewoyaa & Sigma are direct shipping ore with no need for floatation etc & hence why the cost is THE LOWEST.

It is UNHEARD of for any lithium co to provide the FULL CAPEX - example Ganfeng only took over BCN after they had paid for their share of capex which is not direct shipping ore. Not only pay for full capex but studies etc + TO KEEP 50% OF THE PROJECT. Cant find ANY that attractive as usually even in gold deals, co*s only get to keep max 30% for help with drilling only. The only logical reason is that Piedmont wanted to secure the deal?

GOLD PROJECTS
Appears all free. Current IRR mkt cap £122m. Piedmont is paying out US$102m + IRR is said on these forums to have £25m cash. I have to check later re: cash.

ASX LITHIUM
Core Lithium which has the Finnis project in NT, Australia jumped 27.1% with a mkt cap of A$688 Million [£364 million as the exchange rate is £1=A$1.89] Core is also listed on the chart above noted light green but one can see the capex is just below US$400 from Toro*s chart. hxxps://hotcopper.com/asx/cxo/
So, lithium stocks are reacting to the lithium price.

IRR RNS, TUES, 14 SEP 2021
Today, IRR has found MORE lithium at Ewoyaa. This is norm as co*s do not wait to mine all the lithium and then start to look around. Even Core is looking for more lithium in their licence and bought a FURTHER LICENCE near them.

Hence, why Michael Bond as above said the lithium price is "INSANE." But no one appears to know in the LONDON MARKET as to the PLS ANN/RNS of today showing how much they got at auction is SC5 US$2,400 and SC6 US$2,500!!!.

US$2,500 is 4 X what IRR stated in their latest presentation of US$650 for SC6 for their SELLING PRICE & thus the EBITDA as above.

Tues, 14 Sep 2021.

[jlondon] 14/9/2021 16:18

IRR Latest Presentation on their website:

Ewoyaa Lithium Project US$650 SC6 [Selling price]
Payback <1 yr.
EBITDA US$105m [or £76m given £1=US$1.38]

Piedmont deal with IRR is for 50% of the project which means IRR*s capex is paid for [U$68m] plus other expenses totaling some US$102m. IRR gets to keep 50%.
So, the EBITDA means that IRR gets £38m a year.

If P/E is 10 as norm, then the market cap should be £380m [38mx10]
Currently, IRR at 20.8/21.3p = MKT CAP £122 million.
So, that is 3x today*s share price [122x3=£366m] or 63p.
If P/E is 5, then mkt cap should be £190m or 31.5p.

The broker target price [Liberum] is 32p or £185m. So, one can see the broker used a conservative P/E.

===SC6 SPODUMENE SELLING PRICE PER IRR PRESENTATION IS US$650.
PLS AUCTION SHOWS SC6 SPODUMENE IS US$2,500.
==THAT IS NEARLY 4 X MORE ====

So, just multiply everything by 4x more?

Ref: My post above re: PLS spodumene selling for US$2,500 SC6.
IRR*s spodumene is one of the lowest cost as it is direct shipping ore. The cost of processing is shown in the said latest IRR presentation - from recall its about US$278? Kindly check.

Tues, 14 Sep 2021

[jlondon] 14/9/2021 16:04

Whole market is aware today of LITHIUM SPODUMENE price of US$ 2 , 5 0 0 SC6."
Source: PLS Official ASX RNS/ANN dated 14 Sep 2021 {"Result of 2nd BMX Auction."]


Michael Bond tweeted: "$PLS selling SC5.5% at US$2,240 dmt for 8,000 mt.
SC6% equivalent with an approx price of US$ 2, 5 0 0 dmt.
THE MARKET FOR LITHIUM IS I N S A N E AT THE MOMENT. SUPPLY CANNOT KEEP UP WITH DEMAND." Mr Bond shows a screen shot from the RNS/ANN from PLS re: auction price achieved.

Michael Bond*s timeline: "Commodities A/c Manager S & P Global Market Intel."

---
IRR deposit is spodumene.

[ukgeorge] 14/9/2021 08:48

Well that was silly of me....roll on the market waiking up to irr and the resource upgrade

[ukgeorge] 14/9/2021 08:03

Decided to add 10k @ 22.1799Probably should have waited for later in the day.

[drdre] 14/9/2021 07:52

Great drill results. 5 active drill rigs shows a real intent.

[ukgeorge] 14/9/2021 07:33

Commenting on the Company's latest progress, Vincent Mascolo, Chief Executive Officer of IronRidge, said:"We have returned our best drill intersection to date with the highest metal content observed (lithium grade multiplied by meters) for the resource expansion programme at the Ewoyaa North target."The resource expansion drilling programme has now been completed and we will maintain momentum with five drill rigs currently active on site for the resource infill programme."The board remains confident the additional exploration targets will increase resource scale and improve project economics, where we have defined Ghana's first lithium JORC compliant resource of 14.5Mt at 1.31% Li(2) O, within 110km of an operating deep-sea port."Infill resource, metallurgical and hydro monitoring drilling is well underway in addition to metallurgical test-work in support of planned Feasibilty Studies.

[ukgeorge] 14/9/2021 07:30

More great drill results and now working on the resource upgrade!

[hugotanha] 10/9/2021 10:07

I bought this early this year @21p on a very same day could have sold it 28p with a considerable profit.I am just getting bored of this as 80% of my whole investment is on IRR and can't see a major movement in 2,3 month a head.It's shocking that they have 100mil in bank and yet no difference in stock peice yet

[dunkirk1016] 09/9/2021 09:47

UKGeorge thank you for update but between you me and the gatepost we all know this will be many multiples of 32p in due course. They are providing information that is known at this time or at least I hope so……good luck to all LTHs and be patient awaiting news……this will even out with news and the demerger.

[ukgeorge] 09/9/2021 09:03

Shame it is just a 32p price target.

Haven't seen the full note, this summary is all I found.

IronRidge Resources Limited has one of the most promising lithium projects in development, according to Liberum, which has kick-started coverage with a 'buy' recommendation and 32p target price.

Ewoyaa, a spodumene lithium project in Ghana, is best in class in terms of opex and capex, said the house broker.

Output from the mine would also be among the greenest available (hydropower, no chemicals, existing infrastructure, near the port).

Piedmont Lithium is investing US$102mln to earn 50%, which would fully fund and fast-track Ewoyaa to production.

Tesla has a supply agreement with Piedmont, which has agreed to purchase 50% of Ewoyaa’s output.

Liberum believes an updated scoping later this year will extend the mine life beyond ten years while a full definitive feasibility study could see the life extend again to double the 8 years indicated in the original scoping study.

Shares were trading today at 23p.

[goodgrief] 08/9/2021 16:43

IronRidge Resources has 'best in class' lithium project, says brokerOutput from the mine would also be among the greenest available.

[chrysalis99] 08/9/2021 09:19

Does anybody have access to Liberium's initiation note just issued titled "Green' best-in-class lithium project"?

[ukgeorge] 03/9/2021 16:57

It's not 30p but closing on a high for the week on good volume, bodes well. By my reckoning the down trend is also broken. A retest back to 23.5p next week wouldn't be a surprise, but hopefully it will now be a support level.Mumbo jumbo chart analysis aside, fundamentals all look great, financed lithium project, growing resource, 5 drill rigs running, lithium and gold prices high rising.Roll on much higher prices for Ironridge

[smackeraim] 03/9/2021 09:54

Looking a lot perkier than last couple of weeks. Hopefully a nice move coming into Autumn

[ukgeorge] 02/9/2021 16:27

Currently 23.87p to buy, decided to add 10k just before close, fingers crossed the breakout is on.

[ukgeorge] 02/9/2021 16:23

Looking good :)

[smackeraim] 02/9/2021 10:05

Gooner cheer up. lol ;-) it's going north

[ukgeorge] 02/9/2021 08:25

A close over 23.5p will be good and hopefully then be the start of the next leg up

[gooner1886] 02/9/2021 08:21

When does it?

[ukgeorge] 02/9/2021 08:15

Might have to have another top up, seems silly that the share price hasn't reacted

[jasonsd1970] 02/9/2021 08:04

More excellent results coming from #IRR as they widen Ewoyaa; LOM will increase, Piedmont are going to be happy

[drdre] 02/9/2021 07:54

Some excellent assays in that set of drill results!

[wapper] 02/9/2021 07:39

Quality company . Very refreshing. Happy to be a LTH here