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Cadence Minerals #KDNC – Re Bacanora Minerals update on the proposed re-domicile

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) reports that Bacanora Minerals Ltd (‘Bacanora’, AIM: BCN, TSXV: BCN) has today announced it intends to re-commence the process of changing its domicile of jurisdiction from Canada to the UK.

Bacanora now 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.  Bacanora intends to move its head office and its senior management to the UK, and as a result, anticipates that the Re-domicile will result in significant cost and administrative savings

The full announcement can be found here: http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/BCN/13527268.html.

Further to the announcement on the 01 February 2018 by Bacanora, in which it updated the progress in regards to the Strategic Cornertone Investor Financing, Cadence minerals current holds approximately 9% of Bacanora’s equity and once the financing is complete Cadence will hold approximately 7% of Bacanora’s equity. Cadence also holds 30% of Mexalit and Megalit joint venture companies. Mexalit is the owner of the El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 mineral concessions, which forms part of the Sonora Lithium Project in Northern Mexico.

– Ends –

 

For further information, please contact.

Cadence Minerals plc

+44 (0) 207 440 0647

Andrew Suckling

Kiran Morzaria

WH Ireland Limited (NOMAD & Broker)

+44 (0) 207 220 1666

James Joyce

James Sinclair-Ford

Hannam & Partners LLP (Joint Broker)

+44 (0) 207 907 8500

Neil Passmore

Giles Fitzpatrick

Square1 Consulting

+44 (0) 207 929 5599

David Bick

Qualified Person

Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance) from CASS Business School.

About Cadence Minerals:

Cadence is dedicated to smart investments for a greener world. The planet needs rechargeable batteries on a global scale – upcoming supersized passenger vehicles, lorries and buses – require lithium and other technology minerals to power their cells. Cadence is helping find these minerals in new places and extracting them in new ways, which will meet the demand of this burgeoning market. With over £25 million vested in key assets globally, Cadence is helping us reach tomorrow, today.

Cadence invests across the globe, principally in lithium mining projects. Its primary strategy is taking significant economic stakes in upstream exploration and development assets within strategic metals. We identify assets that have strategic cost advantages that are not replicable, with the aim of achieving lower quartile production costs. The combination of this approach and seeking value opportunities allows us to identify projects capable of achieving high rates of return.

The Cadence board has a blend of mining, commodity investing, fund management and deal structuring knowledge and experience, that is supported by access to key marketing, political and industry contacts. These resources are leveraged not only in our investment decisions but also in continuing support of our investments, whether it be increasing market awareness of an asset, or advising on product mix or path to production. Cadence Mineral’s goal is to assist management to rapidly develop the project up the value curve and deliver excellent returns on its investments.

Cadence Minerals #KDNC – Feasibility Study Estimates $1.25bn NPV for Sonora Lithium Project

Cadence Minerals #KDNC is pleased to announce that Bacanora Minerals Ltd #BCN has today published a summary of the Feasibility Study for the Sonora Lithium Project in Mexico. The results confirm the positive economics and favourable operating costs of a 35,000 tonnes per annum (“tpa”) battery grade Li2CO3 operation.  The FS estimates a pre-tax project Net Present Value (“NPV”) of US$1.253 billion at an 8% discount rate and an Internal Rate of Return (“IRR”) of 26.1%, and Life of Mine (“LOM”) operating costs of US$3,910/t of lithium carbonate (“Li2CO3“).

Following the results of the FS, Bacanora intends to progress the Sonora Lithium Project through the development stages over the next 24 months with the detailed design engineering phase currently scheduled for late Q1 2018.

The full Bacanora announcement can be found at: Bacanora Minerals Feasibility Study

Highlights from the Bacanora release:

 Two stage open-pit operation at Sonora: Stage 1 – 17,500 tpa for 4 years; Stage 2 – 35,000 tpa

  • Estimated Project pre-tax IRR of 26.1%; NPV of US$1.253 billion (at 8% discount rate) with a simple Stage 1 project payback of four years. Revenues are based on a flat US$11,000/t for battery grade Li2CO3 over LOM, significantly below the current Li2CO3 price range of US$12,000 – 20,000/t
  • Low estimated LOM operating costs of US$3,910/t of Li2CO3 – lower than the new lithium brine operations being reported in Argentina
  • Average LOM annual earnings before interest, taxes, depreciation and amortisation (“EBITDA”) estimated at US$229 million per annum

Sonora: a large lithium deposit

  • Measured plus Indicated Mineral Resource estimate of over 5 million tonnes (“Mt”) (comprising 1.9 Mt of Measured Resources and 3.1Mt of Indicated Resources) of lithium carbonate equivalent (“LCE”)and an additional Inferred Mineral Resource of 3.7 Mt of LCE
  • Low stripping ratio: open-pit mine design indicates a total of 37.1 Mt of ore to be mined over the planned 19-year mine life with an average stripping ratio of approximately 3.4:1 over LOM

Conventional flow sheet: uses established sulphate route processing technology

  • Integrated plant designed to initially process 1.1Mt of ore per year during Stage 1, subsequently increasing to 2.2 Mt per year for Stage 2
  • Stage 1 capital cost estimate of US$420 million includes – mining, processing plant, infrastructure, construction of Tailings Management Facility, general administration costs as well as the requisite contingencies
  • Potential to sell up to 30,000 tpa of potassium sulphate (“SOP”, “K2SO4“) for sale to the Mexican fertiliser industry

Next Steps: advance Sonora towards production to satisfy expected continuing growth in demand for lithium driven by growing sectors such as electric vehicles and energy storage

Subject to Bacanora board approval and other key milestone events, project detailed design is expected to commence in late Q1, 2018.

Kiran Morzaria, Chief Executive Officer of Cadence, commented: “These results confirm the potential of the Sonora Project to become a significant producer of battery grade lithium for the emerging industries of electric cars and advanced energy storage. Together with Bacanora’s existing off take agreement, Bacanora is now moving onto the development phases of the Project and we look forward to its continued progress towards production.”

The Sonora Lithium Project and Details of Cadence’s ownership:

Cadence Minerals holds approximately 9% of the equity in Bacanora Minerals and 30% of Mexalit and Megalit joint venture companies. Mexalit is the owner of the El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 mineral concessions. These concessions form part of the Sonora Lithium Project as assessed in the FS published a Summary of which has been published today by Bacanora.

Megalit does not form part of the Sonora Lithium Project and does not form part of the FS released by Bacanora.

The direct and indirect interests of Cadence in the Sonora Lithium Project and other mineral concessions in the Sonora province are as follows: 

  • La Ventana and La Ventana 1, which are 100 percent owned by Minera Sonora Borax S.A. de C.V.(“MSB”), a wholly-owned subsidiary of Bacanora; Cadence, through its direct interest of approximately 9% of Bacanora, has an indirect interest in these concessions of approximately 9%.
  • El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 concessions, which are held by Mexilit S.A. de C.V. (“Mexilit”). Cadence has a 30% direct interest in Mexalit through its Joint Venture with Bacanora, and when combined with Cadence’s direct interest of approximately 9% in Bacanora, has a total economic interest in Mexalit of approximately 36%. 
  • Buenavista, San Gabriel and Megalit concessions, which are held by Megalit S.A. de C.V. (“Meglait”). Cadence has a 30% direct interest in Megalit through its Joint Venture with Bacanora, and when combined with Cadence’s direct interest of approximately 9% in Bacanora, has a total economic interest in Megalit of approximately 36%.

– Ends –

For further information please contact

Cadence Minerals plc

+44 (0) 207 440 0647

Andrew Suckling

Kiran Morzaria

WH Ireland Limited (NOMAD & Broker)

+44 (0) 207 220 1666

James Joyce

James Sinclair-Ford

Hannam & Partners LLP (Joint Broker)

+44 (0) 207 907 8500

Neil Passmore

Giles Fitzpatrick

Square1 Consulting

+44 (0) 207 929 5599

David Bick

Qualified Person

Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance) from CASS Business School. 

About Cadence Minerals

Cadence is dedicated to smart investments for a greener world. The planet needs rechargeable batteries on a global scale – upcoming supersized passenger vehicles, lorries and buses – require lithium and other technology minerals to power their cells. Cadence is helping find these minerals in new places and extracting them in new ways, which will meet the demand of this burgeoning market. With over £25 million vested in key assets globally, Cadence is helping us reach tomorrow, today.

Cadence invests across the globe, principally in lithium mining projects. Its primary strategy is taking significant economic stakes in upstream exploration and development assets within strategic metals. We identify assets that have strategic cost advantages that are not replicable, with the aim of achieving lower quartile production costs. The combination of this approach and seeking value opportunities allows us to identify projects capable of achieving high rates of return.

The Cadence board has a blend of mining, commodity investing, fund management and deal structuring knowledge and experience, that is supported by access to key marketing, political and industry contacts. These resources are leveraged not only in our investment decisions but also in continuing support of our investments, whether it be increasing market awareness of an asset, or advising on product mix or path to production. Cadence Mineral’s goal is to assist management to rapidly develop the project up the value curve and deliver excellent returns on its investments.

Lithium Boom – The World’s Hottest Commodity Just Got Hotter – Cadence Minerals (KDNC)

Lithium Boom – The World’s Hottest Commodity Just Got Hotter

Article includes excerpts from Oilprice.com, Lithium Investing news & other sources:

Lithium is the hottest commodity on the planet right now. It is the most important component of electric vehicles, high-energy batteries, power storage, a vast menu of consumer electronics—and even Nirvana-reaching drugs.

Even today’s hyper-growth EV industry is just the tip of the iceberg compared with where it’s headed.

Bloomberg New Energy Finance predicts that 35% of all new vehicle sales by 2040 will be EVs, equivalent to 100 million units every year.

Tesla’s “halo effect” will make astute investors lifetime riches because that’s 100 times greater than current production.

All that growth will present some serious supply chain challenges. But in this massive opportunity, the key to everything is GRADE. Not all lithium is equal.

The majors can increase production, but only to a certain degree–and not nearly fast enough to meet growing demand. If you are looking for outsized gains on your lithium investment, you need to expand your horizon to new entrants with high-quality reserves.

High-grade lithium producers are where EVERY EV manufacturer will be looking as they seek to keep battery production costs low.

Below is a list of the top eight lithium-producing countries in the world.

  1. Australia – Mine production: 14,300 MT
  2. Chile – Mine production: 12,000 MT
  3. Argentina – Mine production: 5,700 MT
  4. China – Mine production: 2,000 MT
  5. Zimbabwe – Mine production: 900 MT
  6. Portugal – Mine production: 200 MT
  7. Brazil – Mine production: 200 MT
  8. United States – Mine production: Unknown

Prices of battery-grade lithium in China, the biggest Li-ion battery producer, surged above $20,000 per tonne in 2016–much higher than the global average.

Now, China has traditionally sourced its lithium from Australia, but increasing competition in the EV space and falling prices of EVs has forced it to look elsewhere for cheaper sources. Chile for example mines lithium from brines located just below easily accessible salt flats. The Atacama salt flat in Chile is the source of 37 percent of the world’s entire lithium production.

Chinese and Korean investors are already engaged in advanced talks with the Chilean government to open up a huge $2 billion Lithium battery plant to feed on the country’s rich lithium reserves. This could kick off an even more ferocious scramble for the precious metal–especially if China starts hoarding and puts further pressure on already constrained supplies.

But with rocketing demand, pressure is on to identify and exploit new resources. Plenty of opportunities exist. Japanese company Hanwa is a cornerstone investor into the Sonora lithium Project in Mexico to supply the fast-growing Asian battery market.

And operated by European Metals Holdings, the Cinovec lithium resource in the Czech Republic is expected to become the central lithium supply hub for European EV industry.

Low production costs are extremely important for EV manufacturers, now more than ever.

Batteries and power trains account for the biggest chunk of EV manufacturing costs. The high cost of these line items is the #1 reason why EVs have remained pricier than they could be. But advancements in battery technology have helped bring costs down–so much so that Tesla can now afford to offer the Model 3 for just $35,000, or half the price of an entry-level Model S.

Near-future demand is so overwhelming that we are in real danger of massive deficits. Current global Lithium-ion cell production can only supply 900,000-1 million electric vehicles.

Tesla is on course to kick off production of its first mass-produced vehicle–the Model 3– in July, and has already amassed 373,000 reservations. That’s five times the company’s 2016 sales.

Tesla has a goal to produce 500,000 Model 3s per year by the end of 2018, and could hit a million units as early as 2020. The company also sells home and industrial energy products, including Powerwalls. About 51Kg of Lithium goes into each Model S, while each Powerwall 2.0 unit packs 10Kgs of the metal.

Source: Visual Capitalist

Global production will ramp up more than 500 percent between 2016 and 2020, and while China will be doing much of the heavy lifting, the emerging resources in USA and Europe will all have a key role to play too.

Source: Visual Capitalist

By 2025, the battery market alone will be twice as big as today’s entire lithium market.

Therein, of course, lies the massive opportunity. Investors will want to identify owner / operator companies, and investment vehicles involved in a spread of risk – ranging from early stage resources to assets close to / in production. Time is of the essence though: these heady growth projections will be mirrored in stock price gains.

Excerpts from Oilprice.com article. Other sources Lithium Investing news:

Cadence Minerals (KDNC.L) is a unique early investment strategy & development firm, within the mineral resource sector. We identify undervalued assets, with irreplaceable strategic advantages. We invest in them and help turn them into powerhouses. Lithium and other technology minerals must get to market in order to achieve the global green revolution. We uncover new ways and places to extract and process these minerals, so that burgeoning demand is met; and our tomorrow is better.

 

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