Cobalt is also needed, i think Glencore is planning on doubling production of Cobalt in the future, may need to re-visit Glencore too. https://www.bloomberg.com/news/articles/2017-12-12/glencore-to-double-cobalt-output-as-electric-cars-drive-demand
Hoping they can sort this finance issue out. Mr hindsight says I should have cashed out at 75% profit.
Having bought in recently, I'm losing in the short term but Lithium has got to be a winner in the long term. Unless there's a sudden huge change in battery technology demand is only going to increase and supply will struggle to keep up. basic economics tells me that the price of Lithium will rise. I'm hanging in there. It's a buying opportunity for the courageous.
We may have gone backwards, but it sounds like we are better off without them, if they can't cough up at this stage. As I said yesterday, you'd like to think that we can at least be compensated for the time wasted and get a few mill extra in the bank. It would be good to get some news, but I assume the Board saw this one coming and have a few other irons in the fire.
Good to see blue after that kind of announcement. I wonder if there's some kind of penalty for those chancers not fulfilling their obligations. It'd be nice to get a million or two in the pot after they wasted everyone's time.
Think SP was down at 80p at one stage. The RNS has clearly had an effect on SP but long term investors etc I suspect see this as a buying opportunity and many have piled in. Had they not done so I guess SP would have tumbled much more. Not an ideal situation admittedly but hopefully management will pull something out of the hat! I intend buying a few more once the dust settles.
Bloomberg New Energy Finance (BNEF) says that sales in electric battery vehicles in the third quarter (Q3) of 2017 was 287,000 units, up 63% from the same period in 2016. This gives a nine month total of 350,000 vehicles sold between January and the end of September 2017. BNEF says that by 2030 global electric vehicle sales will be in excess of 24 million units annually.
So where will the lithium come from? This is the metal that, at the moment, is critical in transportable battery composition.
Expectations among the mining community is that, while it seems Earth has enough lithium to go around, BNEF says that lithium ion battery manufacture over the next 12 years will require 1% of the worlds supply. The big question is where are the new mines to bring this supply on?
London and Toronto-listed Bacanora Minerals has just passed a significant milestone with the publication of the feasibility study from its Sonora lithium mine in Mexico. Indicating a net present value of $1.25 billion in resource, CEO Peter Secker tells IG that its cost of production is in the lowest quartile at $4000 per ton. With lithium prices currently around $13,000 per ton, the internal rate of return (IRR) is 26%.
So what does Bacanora have to do to begin production? Secker is hopeful that, subject to the funds being available and the project working to schedule, that production will begin in the first quarter of 2020.
Recently, Bacanora has seen some big names take a position in the company; BlackRock, M&G, Hanwa and Igneous each with a 10% holding, and Capital Group on 7%. Secker says he hopes that those shareholders will provide strong support when it comes to raising the $420 million in capital expenditure needed to fund the mine works.
Once up and running, Bacanora fully expects that all of its lithium production will go to Asia, where, according to Secker, 95% of all lithium ion batteries are made. Does he see demand from US electric car giant Tesla? No, the companys focus will concentrate on supplying producers in China and Japan.
With its market capitalisation at £139 million, finding the funding could be critical to the future direction of Bacanoras share price.
That's very useful & helpful information - thank you. I didn't realise that a lithium ETF existed!
(If SELL appears on this, please ignore; should be HOLD but my computer insists on providing sell as the only option )
Expecting a re rating to circa £2 on a successful financing plan
Bacanora Minerals said it would re-commence the process of changing the domicile of jurisdiction from Canada to the UK.
The company said it intends to raise a significant amount of new debt and equity financing to fund its growth as an international lithium company with new projects in Mexico and Germany and believes that a UK domiciled company with its primary listing on AIM is the best way to achieve this.
The company's efforts in September 2016 to re-domicile from Canada to the UK was unsuccessful as it failed to obtain shareholder approval to proceed with the move.
At 8:45am: (LON:BCN) Bacanora Minerals Ltd Ord Npv di share price was -6.5p at 101.5p
I don't get it right very often, but I said I thought I'd get to 150 and I also said it will see support at 116... This is effectively what the Chinese cornerstone investors paid given new shares in issue.
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