Read on Twitter
1/11
When I wrote the enclosed tweet, I never imagined for one minute, that we were so close to actual #BCN funding close.
Nor could I have predicted the circumstances under which it would all be pulled together. https://twitter.com/BigBiteNow/status/1356202580276342784?s=20
When I wrote the enclosed tweet, I never imagined for one minute, that we were so close to actual #BCN funding close.
Nor could I have predicted the circumstances under which it would all be pulled together. https://twitter.com/BigBiteNow/status/1356202580276342784?s=20
2/
I fail to understand why this announcement was made outside of trading hours, when it was supposed to be designed to assist retail investors take part in the final fund raise for the project.
I also cannot believe that said institutional investors, weren't already lined up,
I fail to understand why this announcement was made outside of trading hours, when it was supposed to be designed to assist retail investors take part in the final fund raise for the project.
I also cannot believe that said institutional investors, weren't already lined up,
3/
given this out of hours approach.
So said retail offer, whose time limit was based on the time required for the institutional raise to be filled, was always going to be on a very short leash.
Both reasons are exactly why it wasn't filled and for me, show disrespect...
given this out of hours approach.
So said retail offer, whose time limit was based on the time required for the institutional raise to be filled, was always going to be on a very short leash.
Both reasons are exactly why it wasn't filled and for me, show disrespect...
4/
to the existing investors, they were supposed to be helping.
In addition, be it less surprising, Ganfeng clearly holds the power in this negotiations, given that their $28m "at project level" payment to increase their holding in Sonora to 50%, has been been subtracted...
to the existing investors, they were supposed to be helping.
In addition, be it less surprising, Ganfeng clearly holds the power in this negotiations, given that their $28m "at project level" payment to increase their holding in Sonora to 50%, has been been subtracted...
5/
from the total "project level" working capital fig. of $37m.
So Ganfeng have effectively picked up that further 27.5% for $14m and not $28m, as stated.
I am sure that Ganfeng have invested considerable resources on the design side of things and it is clearly they that have..
from the total "project level" working capital fig. of $37m.
So Ganfeng have effectively picked up that further 27.5% for $14m and not $28m, as stated.
I am sure that Ganfeng have invested considerable resources on the design side of things and it is clearly they that have..
6/
been instrumental in the $13m in savings on the CAPEX cost and for driving this project forward.
So there is certainly room for give and take on this but it would be foolish to ignore completely.
I could also bring up the timing of the fund raise, which I didn't expect...
been instrumental in the $13m in savings on the CAPEX cost and for driving this project forward.
So there is certainly room for give and take on this but it would be foolish to ignore completely.
I could also bring up the timing of the fund raise, which I didn't expect...
7/
prior to engineering being completed and Chinese regulatory approvals, which in turn should have improved the 45p offer price.
But again, this isn't my first time around the block. I appreciate that in this game, such level of victory is often, unfortunately, asking too much.
prior to engineering being completed and Chinese regulatory approvals, which in turn should have improved the 45p offer price.
But again, this isn't my first time around the block. I appreciate that in this game, such level of victory is often, unfortunately, asking too much.
8/
Black marks aside, whats truly key in all of this is that the funding is now completed, including working capital. So the market has a far clearer line of sight to measuring NPV.
Yes Ganfeng requires regulatory approvals but the pure fact that this fund raise has been...
Black marks aside, whats truly key in all of this is that the funding is now completed, including working capital. So the market has a far clearer line of sight to measuring NPV.
Yes Ganfeng requires regulatory approvals but the pure fact that this fund raise has been...
9/
completed now, sends a strong message that it won't be a problem.
Its been abundantly clear for some time, that this is Ganfengs show and that is even clearer now and that's something I am more than happy to gain back door entry to.
completed now, sends a strong message that it won't be a problem.
Its been abundantly clear for some time, that this is Ganfengs show and that is even clearer now and that's something I am more than happy to gain back door entry to.
10/
As expected the SP has pulled back close to the funding price, whilst immediate profits on the raise are taken.
45p @ 330m shares (Ganfeng element still to come) = £148.5m.
That's too cheap for me given the NPV, so I expect a healthy rise post this clear out.
As expected the SP has pulled back close to the funding price, whilst immediate profits on the raise are taken.
45p @ 330m shares (Ganfeng element still to come) = £148.5m.
That's too cheap for me given the NPV, so I expect a healthy rise post this clear out.
11/
That's why I will continue to add at these levels, with a view to being overweight and slicing at a more respectable level, in the coming months.
My long term holding will remain for the long run, given the substantial de-risking that has now been accomplished.
That's why I will continue to add at these levels, with a view to being overweight and slicing at a more respectable level, in the coming months.
My long term holding will remain for the long run, given the substantial de-risking that has now been accomplished.
11A
Ok another 120k shares added to my #BCN pot.
The churn is absolutely clear to see and is going at a good rate. Once complete we should see a move north and a chance to de-risk that LT position further.
Ok another 120k shares added to my #BCN pot.
The churn is absolutely clear to see and is going at a good rate. Once complete we should see a move north and a chance to de-risk that LT position further.
23.5m shares traded on #BCN today, so some very good churn but likely still some way to go. Then we can get to valuing this post mine finance lithium player more realistically.
