Bradda Head Lithium exceeds targets, secures US$3 million royalty and moves closer to production. Watch the video here.
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As expected ctl raise capital over and above the asx planned capital amount.
They have told us it is coming numerous times so I would expect share price weakness over next couple of weeks.
Each to their own if they feel they wish to buy now or after the raise. I suspect this will continue to trickle down to the 13s on the pressure of discount expectation.
Rns suggests that near enough term value will return, however. Suspect it will. Just a case of how low it goes before the rerate.
Long term decent gains likely.
Target 13p initially.
I think that is largely missing the point. They are telling you that they are not going to raise capital from the market (either AIM or ASX) at this price - this is a stop-gap financing (largely provided for by their largest shareholder which speaks volumes). The stop-gap is to relieve short term pressure. They have a slew of releases coming up over July and August which should be very positive for the price. They will then likely tap the ASX at a price that they consider to be more reflective of their value - ie: not here.
RD as part of their ASX listing they have to demonstrate they can raise capital, we were even told roughly how much. They have to do this in order to list. Thems the rules. That raise will be circa £350k. My supposition is they would bolster the books with an additional raise. They have just done this. Next will be the ASX capital requirement.
Within next few weeks.
In fact its even more stark than that as this 2.1m bridging loan is to be repaid from the upcoming ASX capital raise. So expect the next raise to be substantial and a lot more than £2m. They are literally telling the market what they are going to do. Why on earth is anyone buying this 😅
The writing is certainly on the wall shorter term.
That makes no sense whatsoever though to be fair we will know in two weeks if you are correct or not, so am happy to admit that they may do as you suggest however given that they have just taken in in excess of 2mm gbp it does not make any sense to then go to the market to ask for them to raise it to pay it back. You'd just ask for it and avoid the CLN. My take is relatively simple and given the move today from them they are clearly looking to raise sufficient capital to take them through to the big lift which is likely end q1 2025 / q2. My expectation from original minimum raise to get listed is now considerably higher - they need to raise at least 5mm AUD as they have stated in the RNS. I think it will be considerably in excess of that if in the interim period between now and (likely) sep/october they have done all the developments on the ground that they are expecting and consequently get the re-rate this project is, to my mind, deserving. Then (and only then) do I think they will go to the market - my guess is somewhere between 10 & 20 million AUD raise to get the next programme of works underway and through to the full project finance they have been pointing to and at which point all these small working capital raises are then put to bed.
'This loan is intended to be a short-term bridging facility to be repaid from the proceeds of the next capital raise, which as previously announced, the Company intends to conduct in connection with its dual-listing on the ASX. '
What is there to not understand. Its crystal clear. The ASX listing will happen soon and with it a significant capital raise. From which this short term loan will be repaid.
Munnie sounds spot-on (once again, and have much appreciated all MT's recent posts!). There will be an interim raise of at least 5m AUS dollars, says it quite clearly again elsewhere in the RNS :
"In assessing the reasonableness of the terms of the Loan Notes, the Directors considered several prevailing factors including the Company's cash position in general, the need to replace proceeds from the CLNs which had not been paid (as referred to above) the pressing need to manage Company's near-term working capital requirements with suitably priced alternative funding and also to find supportive Loan Note holders who are supportive of the Company's wider objectives". Elsewhere, under the terms of the loan, states that : "following the completion of a capital raise of at least A$5,000,000"...
I suspect that they won't be looking to raise much above the quoted minimum ( which is £2.6m, so say £3m), and also that the ASX listing still remains a short distance away time-wise, maybe a fortnight or so. Interestingly they may be waiting for the now imminent CEOL response, which I guess could before the end of this week or else Monday/Tuesday afternoon, given that I think the govt said that the response would be something like "by July 9th" as the apparent deadline. Given CTLs close relationship with the local communities and the government, to me everything points to the CEOL response towards CTL as being very positive, which would remove another lingering risk factor, hopefully bumping the sp up a bit prior to the raise. So I'm not sure that the current sp will drop that much before the ASX listing, depends on what happens in these next 3 trading sessions, and it's a question for me as to how long I sit on the fence watching before topping up at these low prices... Besides the quotes above , all the rest of my blah blah is just guesswork and personal assumptions. GLA
Time will tell, this is not a huge difference, I am larger number in two to three months, you are relatively smaller and almost immediate. The terms of the CLN push me to 3 months and practicality means 10-20mm.
RNS this morning was constructive. I had been wondering where the offshoots from the PFS work Gordon mentioned some time back had gotten to. They are positioning the market for the move from an exploration to a development company. They are using their lead position as a DLE developer to position the company as a downstream service company for the sector. This is a wise application of their first-mover advantage. It may (or may not) bring fruit from other downstream processing for 3rd parties but clearly saves them from having to re-invent the wheel for themselves. An expected decision but nice to see it settled upon.
Agree, generally. Its all fairly academic since after ceol, pfs and confirmation of final lithium grade CTL will be trading back in the 20s or 30s.
Hard to predict how ASX will affect things. Most dual listings dont help much but with ctl that might be a different story.
Anyway, its holding support so thats a good sign.
Dare I say it... the difference between 14p and 13p is negligible. If holds support this week I may take an initial tranche.
Let us not forget that Regal et al and the brokers themselves and their friends and family (according to one investor presentation) all have significantly higher averages.
When this moves it will move.
Just a matter of how much capital is raised and when that will determine the ultimate floor here