My apologies . Lost track of the months . For some reason thought we were already in April .
AVZ Discussion 2022
- Thread starter GazDix
- Start date
Frank
Top 20
*Fyi - To add fwiw Bro, I see where, Not cross promoting, just happy for them and the "Positive Vibes" for the sector as a whole atm, asLTR holders are having a good day ….
Be nice to have that feeling around these parts soon.
LIONTOWN and all the lithium stocks
LTR has rejected a takeover offer from lithium giant Albemarle valuing the mine developer at $2.50 per share – a big premium to yesterday’s closing price of $1.54/sh.Ablemarle, which has built a ~2.2% stake on-market, previously offered $2.35 per share on 3 March 2023, and $2.20 per share on 20 October 2022.
“In coming to its decision, the Liontown board noted the opportunistic timing of Albemarle’s indicative proposal, coinciding with recent softness in companies exposed to the lithium sector and the pre-production status of the Kathleen Valley project,” LTR says.
The LTR share price is now at record highs.
(Fun fact: on this day in 2019, LTR was selling for 2c per share. That’s a 11,600% gain in four years.)
The news also provided a boost to several sold-down lithium project developers and miners on speculation they could also be in the M&A crosshairs.
Leading the pack were freshly minted NT hard rock producer Core Lithium and Argentinian brines play Argosy Minerals.
Other +$400m capped stocks rebounding with double digit gains in early trade included Pilbara Minerals, Allkem, Sayona, Lake Resources, Ioneer and Leo Lithium.
Is Albemarle’s bid for LTR the ‘starter gun’ for lithium takeovers?
Regarding the headlining question, Melbourne-based financial advisory firm, Seneca Financial Solutions CEO Luke Laretive thinks so.He says the bid could be the start for a range of takeovers in the lithium sector, facilitated by more stable, lower prices giving bidders more confidence to act.
The offer from lithium giant Albermarle values the Kathleen Valley mine developer at $2.50 a share, more than it has ever been worth.
As one of the world’s largest lithium producers, Albermarle would pay $5.2 billion for control of Liontown, representing a 63% premium over the LTR’s last closing price on Monday.
But LTR kicked the offer to the curb, following the rejection of earlier non-binding indicative proposals from Albemarle at $2.35 per share on March 3 and $2.20 per share on October 20, 2022.
“We think Albemarle continues to acquire on market and push over the 10% mark in a bid to discourage competition, while working with Liontown management to come to an agreed higher price,” Laretive explains.
“We also expect additional competitive interest in Liontown, and other lithium names that meet our ‘strategic appeal’ include companies such as Vulcan Energy Resources and Galan Lithium in the mid-caps.
“MinRes would attract interest if it were to be spun and we also think Pilbara Minerals for global diversified miners like BHP or RIO makes a lot of sense.”
Everyone from carmakers to mining giants are after a slice of Chalice’s 3Mt Julimar pie
- Chalice boss Alex Dorsch says the company is drawing interest from across the EV supply chain for a strategic partner process at its Julimar discovery
- Comes after nickel-copper-PGE play boosted resource by 50% to 3Mt NiEq
- Market goes bonkers on Albemarle’s $5.2b Liontown bid
Global OEMs are among those bashing down the door of the Chalice Mining dataroom as it opens a strategic process to find a partner for its massive Gonneville nickel, copper and PGE discovery in WA.
The project just 70km north of the State’s capital Perth has emerged as the second largest undeveloped deposit of nickel sulphides in Australia behind OZ Minerals’ $1.7 billion West Musgrave, with a 50% increase in the resource today to 3Mt nickel equivalent another signal of its world class potential.
While a scoping study is still in the works, the massive agglomeration consisting of 16Moz of contained 3E PGMs (platinum, palladium and gold), 860,000t nickel, 520,000t copper and 83,000t cobalt is one of the largest of its kind globally.
And, found in what was previously believed to be an infertile area on the western margins of the Yilgarn Craton near WA’s west coast, it has opened up an entirely new exploration domain stretching for hundreds of kilometres in WA’s South West.
Located on private farmland purchased by Chalice, the Gonneville deposit itself covers just 2km or 7% of a 26km stretch known as the Julimar Complex, much of which heads north underneath a state forest.
Its rapid expansion and scale drew interest from all along the value chain, Chalice MD Alex Dorsch told Stockhead with Standard Chartered and Macquarie Bank drafted in the formally run a process to bring in a strategic partner for the mine.
“We’ve gone all the way to carmakers, we’ve got a number of carmakers that are already in the dataroom, and we’ve got some downstream and sort of battery producers as well,” he told Monsters.
“So it’s a really quite broad mix across the entire value chain.
What we’ve flagged, I guess today is that now we’re going to allow the mining parties in, we previously have not shared anything with any of those parties, the majors or any of the operating partners. So we’re now going to let them in.
“We feel we’ve got enough definition now over the project that they can start to add some value to the equation, and obviously, we’ll now weigh up whether it’s a partner transaction with an operating company, or an OEM or a downstream company, or both.
“In reality, we’ve got obviously lots of room here to attract even multiple partners to the project.”
Going, going, Gonneville?
The decision to put out the resource ahead of a scoping study came with an additional 260 drill holes into the Gonneville resource, now defined over a strike extent of 1.9km to a depth of 800m, where it remains open.It is likely to contain an open pit with an expected strip ratio of around 1.6, with a deeper underground block cave, a technology used in large low grade underground mines like Newcrest’s Cadia, Rio’s Oyu Tolgoi and BHP’s Leinster where nickel sulphides are being mined by what has been termed a “baby block cave”.
A higher grade sulphide component with a 0.6% NiEq cut off was increased in tonnage by 27% to 120Mt at 1.6g/t 3E, 0.2% Ni, 0.18% Cu, 0.017% Co (0.9% NiEq or 2.7g/t PdEq) for 5.8Moz of 3E, 230,000t Ni, 210,000t Cu and 20,000t Co.
Work is still ongoing to assess the best processing route, though Dorsch says the company will likely be competitive on costs with jurisdictions where deposits like these are typically mined like South Africa and Russia due to WA’s low cost power and the simple open cut style of the initial development.
Dorsch says the rise of electric vehicles and interest from across the supply chain on ramping up the supply of raw materials was driving interest from third parties.
But issues in traditional platinum and palladium jurisdictions like South Africa, which generates around 70% of the world’s platinum and 40% of its palladium, and Russia, the world’s other major palladium supplier, was stoking OEM interest as well.
Platinum and palladium are poised for a rebound in demand as internal combustion engine car production rebounds in the near term from stultifying Covid restrictions and semiconductor shortages.
They are used in catalytic converters, which help reduce ICE emissions.
“There are certain OEMs that are starting to get interested in the PGMs, because (of) just how reliant primarily on South Africa they are and I think the market is starting to become acutely aware of just how dire operational circumstances are in South Africa and political circumstances,” Dorsch told Stockhead.
“That’s not being reflected yet in PGM pricing, but it’s certainly in our view coming, just how shaky the South African PGE industry is right now.
“The industry players are focused on the nickel and cobalt and the copper but we’re starting to get more strategic interest on the PGMS as well from the same parties talking there as well.
“It has evolved a little bit, the EV sourcing problems in terms of raw material sourcing is just a bit more public and a bit more mainstream than the problems that they’re having on the PGM side.”
Supply challenge
Gonneville is looming as one of the few major emerging sources of supply for both battery metals and PGMS, which will also play a role in the green hydrogen industry as a key material in electrolyser membranes.
Most OEMs have been able to source their material from major secondary processors like Heraeus and Johnson Matthey, but that could become complicated as social discord impacts South Africa’s dominant PGM industry from where the raw materials are largely sourced.
Security of supply of both battery metals and PGMs have drawn high profile investors to Chalice.
Gina Rinehart’s Hancock Prospecting is sitting with a stake just below the 5% significant shareholder threshold which would trigger the public disclosure of its stake.
Andrew Forrest and Wyloo Metals is also believed to have been snooping around, though Dorsch says he’s had no contact at this point with anyone in the Twiggyverse.
That supply challenge, and the urgency to construct technology critical to Net Zero targets and the energy transition is also a tool in the belt for Chalice as it looks to get Gonneville permitted.
While Gonneville itself is located on farmland, the proximity of the project to Perth and previous opposition to its, since approved, plans to drill in the Julimar forest highlighted the complexities it could face which more remote mining operations won’t.
“We’ve already acquired a lot of farmland, which creates a big buffer already around for the local residents. And … we’re engaging … wider in the community there, we’ve gone out with a formal survey, a chance for community members to provide formal responses to a survey,” Dorsch said.
“Those responses are sort of just coming in now. So we’re doing the right engagement.
We understand that there are certain certain members of the public that will be more open minded, and some will be less open minded to a major mine development.
“We’re working through that as sensitively as we can. Just because we appreciate that it’s not a mining area so we have to tread lightly.”
And on the markets?
Oh you haven’t heard?
Lithium is back baby.
After a dry few months the champagne flowed across the sector as everyone got excited a deep pocketed major may buy the bag they’ve been holding through the (not so great) lithium price fall of Q1 2023.
The reason?
Liontown Resources and its decision to knock back a non binding indicative proposal of a $2.50 a share buyout, valued at $5.2 billion, from US lithium giant Albemarle.
Its stock is up 67.5% to $2.55, beyond the offer price and well above its previous ATH of $2.20, signalling investors think another bid from Albemarle or another resource hungry major could be in order.
Both Chalice and Liontown count Perth businessman Tim Goyder as a major shareholder.
Some day for last year’s Diggers and Dealers GJ Stokes Award winner.
Materials stocks rose 2.19% with lithium companies jostling for position at the head of the winner’s list.
Now lets get this shit show on the road and back on track asap
Food for thought Fletch
Cheers
Frank
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This is what happens when @John25 is late with the weekly tally
Carlos Danger
Top 20
DRC-Mines: the government suspends the activities of the Chinese company JIANG MINING SPRL following the pollution of the Aruwimi River
March 28, 2023 NEWSCD No comment
The government of the Republic suspends the activities of the Chinese mining company JIANG MINING SPRL, accused of illicit exploitation and of being at the root of the water pollution of the Aruwimi river (La Lohale), in the province of Tshopo.
This is what emerges from a decision signed on March 25 by the Minister of Mines, a copy of which has reached our editorial office. In her letter, Antoinette Kalambayi, who cites her sources, notes that this company engaged in the exploitation and extraction of gold ore, diamonds and rare metals on the bed of the Aruwimi river, without authorisation.
Qualifying this behavior as a repeat offender, the Minister of Mines decided, on behalf of the Congolese government, to suspend all activities of JIANG MINING SPRL.
To this end, it instructs the head of the provincial mining division in the Tshopo to take all necessary measures to ensure that the minerals exploited by this company are confiscated in compliance with the legal provisions.
This decision also follows the visit in January 2022 of the Deputy Prime Minister, Minister of the Environment and Sustainable Development, Ève Bazaïba Masudi to Basoko to get an idea of this pollution.
JJ KITENGE
Bin59
Regular
After its confirmation to the Sama2 government as "ALDEC", the MinÉtat in charge of portfolio NOBLELY dismissed 60% of its cabinet, all from the AFDC of Bahati, its former political grouping. She wanted to communicate it in the presence of the concerned after several humiliations. 
Bin59
Regular
Both Nigel and John are speakers at this event - not sure why both would need to attend/speak.
Aspermont Corporate
TheCount
Regular
Nice well laid out answer. I've done the calculations on my own device and I too don't have enough digits on the screen - this is all I came up with...
TC.
Paid trip to London, isn't it? I'd take it.Both Nigel and John are speakers at this event - not sure why both would need to attend/speak.
Aspermont Corporate
london.miningjournalselect.com
Samus
Top 20
After its confirmation to the Sama2 government as "ALDEC", the MinÉtat in charge of portfolio NOBLELY dismissed 60% of its cabinet, all from the AFDC of Bahati, its former political grouping. She wanted to communicate it in the presence of the concerned after several humiliations.
The State of public companies of Manganese and Gold (Kisenge-Manganese of Dilolo in Lualaba), Gold based in Watsa and Bunia (Sokimo in Haut Uele and Ituri), Tin-Tantalum-Lithium (Cominiere de Manono), Sakima ( Kivu) Diamonds (Miba in Kasai) forces the resignation of MinPortefeuille.
Retrobyte
Hates a beer
Nige and JC were both originally listed to speak, but Nige wasn't on the final agenda - obviously he has bigger fish to fry at the moment.
The five person panel JC was on was chaired by Tom Albanese and was to discuss investment opportunities in gold. Haven't found any video or recording of the session so don't know if JC slipped in anything about AVZ while he was at it.
However, that event also has a number of behind closed doors personal meetings between investors and representative from mining companies, but again, I don't know if JC had any of those type of meetings lined up.
John25
Regular
P
probably booked up flights/expenses to AVZ to talk about gold …Glad to see he didnt make much effort in his personal presentation …wouldnt of recognised him otherwise
Spikerama
Regular
Right? He looks like an unemployed vagrant. FFS sharpen up man. Spend a few bones on personal grooming. Not as if we don't pay you enough
Mickyb64
Regular
Is this stating that the Minister for Portfolio (The green bitch) has resigned?
Dijon101
Regular
JC's presentation.
"Fuck investing in the DRC, it's aged me 20 years"
Disclaimer
#1 I'm still optimistic that we will pull through all this shit.
#2 Still to many false dawns to use "ML" and "imminent" in the same sentence.....
She just ousted half of her management staff - probably referring to that. Or calling on her to resign. But she's not going anywhere
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