The latest Investing Matters Podcast episode with multi-award-winning fund manager and international bestselling author Lee Freeman-Shor has just been released. Listen here.
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Hi all, hope everyone's well
Exciting weeks and months ahead entering June. Keith mentioned an updated timeline to the DFS will be given a few weeks to a month from the recording date of the most recent interview ( recorded circa 2 weeks ago). It's been stated the new site will help expidite the permitting process as it's shared with currently operating CEZ coal plant - the DFS has been being finalised for nearly 5 weeks and we know the largest majority is complete ( Both SAV and ZNWDs DFS not due until the end the year and both also set up for big 2024s and beyond as the CMRA takes effect ) The Just Transition fund Grant was mentioned for May/Q2 with steps in may june and the Final in July mentioned in the recent interview. I'd expect news on the above over this week or next. The new site is large enough to have a Gigafactory - while we await news on the 8bn gigafactory bid placed in March. News in relation would be huge and also feels impending.
“The gigafactory project is one of the strategic priorities of the government, and it is in our interest to have the entire chain from lithium mining through the gigafactory, i.e. battery production, to the final products in the Czech Republic,” said Fiala said at a press conference on Wednesday
https://centraleuropeantimes.com/2024/03/mystery-ev-firm-to-build-eur-8bn-plant-in-czechia/
Czechia will host a EUR 7.9bn electric vehicle (EV) battery in Karvina, east Czechia, funded by a foreign investor, the Czech government announced on Thursday, 7 March.
Czech Prime Minister Petr Fiala said Wednesday that the project should improve the country’s employment figures, energy security and competitiveness, adding that the deal precludes him from disclosing the name of the company.
Czech Industry and Trade Minister Jozef Sikela said the company is large and from a democratic country with which Czechia has long held good relations.
Sikela also revealed in November that Czechia is in discussion with five other potential EV plant investors “from other continents”. Fiala said, “the gigafactory project is a strategic government priority, and it is in our interest to have the entire chain from lithium mining through the gigafactory, i.e. battery production, to the final products in Czechia."
https://www.lse.co.uk/rns/czech-pm-visits-cinovec-signs-moc-with-saxony-pm-mwkqeepvayfkxu7.html
The Gigafactory Europe event is on the 4-5 of June - considering the the prime minsters comments / plans and the site being big enough for Gigafactory - we're well positioned - and update should can come anytime now on who the bidder is.
The Just Transition Fund grant
The total amount allocated by the Just Transition fund for the Czech Republic is CZK 41B (€1.64B) of which the Usti region has been allocated CZK 15.8B (approx. €632M).
The first call for grant applications under the JTF opened on 14 November 2022 and closes on 31 December 2023.
Given the total amount which may be applied for by the eleven designated Strategic Projects in the Usti region in the first call is CZK 8.3B (approx €350M) and that the funds allocated in this first call from the Just Transition Fund to these Strategic Projects totals CZK7.3B (approx €300M), although there can be no certainty, the Company is confident that Cinovec will receive a significant portion of the funds applied for from the JTF for the Project.
Accordingly, Geomet s.r.o (the Cinovec project company) will apply for JTF Grant funding for the maximum amount of CZK 1.2B (approx €49M).
Theres €300million just for the 11 strategic projects - there's no reason not to believe Cinovec will recieve a large portion supporting the transion from coal job to clean jobs as the tailings rehabilitate the demomisionwd coals sites. Especially relitive to today's circa £50mil mcap.
As Europe's largest hard-rock lithium mining and processing project, the Cinovec Project is applying for and is expected to receive Strategic Project designation under the CRMA. The Project has already been granted Strategic Process status under the EU's Just Transition Fund.
To be a strategic under the Just Transition is a big deal - there may also be a update on application for Strategic Project status under the CRMA which started last week.
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DFS - The PFS was based on circa 13% of the total resource and no inclusion of the Tin - full DFS alluded would have a phase 2 production of 50,000 - 60,000 TPA which will have a huge impact on the projected NPV.
. Annual production of battery grade lithium hydroxide monohydrate modelled to increase from 25,267 tpa to 29,386 tpa, an increase of 16%.
· NPV8 (post tax) increases from US$1.108B to US$1.938B, an increase of 74.9%, based upon a lithiumhydroxide price of USD17,000 per tonne.
· Post tax IRR of 36.3% and a payback period of 2.5 years from the commencement of production.
· Up-front capital cost due to backfilling plant and additional capital costs to produce 29,386 tpa lithium hydroxide increased to US$644m.
· This 2022 PFS Update assumes the life of mine extraction of 13.1% of the Measured and Indicated JORC Resources at Cinovec.
· Use of tailings for backfill will result in a far smaller environmental impact, further enhancing the Project's already strong ESG credentials.
Jan Losenický, Mayor of Kadaň, added: "We welcome the plan of ČEZ and Geomet to build a lithium plant in Prunéřov. People from our town who currently work in coal-fired power plants or mines, but which will be gradually downsized and closed, could find employment in the processing plant. The investor has promised to invest in the training and retraining of current employees so that they can be employed in the new sophisticated plant. We are glad that ČEZ will not leave the region with the end of coal but will remain one of the largest investors and employers in the region, also thanks to the lithium park project.
So much of the above sounds it happening and that we be updated over June and beyond but is not priced in - Opportunity while still under the European Bank of reconstruction and developments42.3 investment price - having the support of Major state power company 70% government owned in CEZ is invaluable - the EBRD being partner will be also be when it comes to FID after DFS - while the CMRA comes into effect.
Cinovec is front runner to be one the CMRAs strategic lithium mining projects being the biggest, projected phase 2 to would be to produce the most, also refining and already proven to be extremely clean, now locally accepted and alongside the Gigafactory at the current will replace close to 10,000 jobs and support the 200,000 from the Czech automobile industry - on a triboarder to support Germany and Poland - we know both are of strategic priory to the Czech Republic.
The CMRA means Europe is obligated by 2025 to secure a certain percentage of the lithium critical raw materials from the EU and that all automobile makers will need show the sourced at least a certain portion within the EU by 2030. There will need to be more the 1 for strategic mining project for Lithium.
It feels like when not if on multiple fronts - imho the current price is a great opportunity while under the banks price approaching the above new term news. Enjoy the rest of the weekend all.
Thanks for your very detailed comments Wisey. These help to counter the negative rubbish put out by others, some of whom don't own any shares.
Keep up the highly informative postings.
Https://x.com/elonmusk/status/1794605275850371199?t=JCcU1TbiSrPNQQmJ-XE-WQ&s=19
The reactions to Wise/fingers/reversal on hotcopper give me hope in humanity.
https://hotcopper.com.au/threads/weekend-research-near-term-news.8020387/
I second that Colin.
It makes you realise even more what a bargain the current SP of 22p is.
Because let's face it the revised DFS timeline will be a huge trigger for the SP, one way or the other.
Then we get grant update/news.
On those two bits of news alone next month, and they are good. Fireworks!
A big June is looming.
Https://www.linkedin.com/posts/david-tasker-03408485_following-the-confirmation-of-a-6-million-activity-7089937384460480512-_dqs?utm_source=share&utm_medium=member_android
A good interview after recieving the €6million investment from the European bank of reconstruction and developments at 42.3 - great opportunity at this stage while under that price approaching news
First call for strategic projects was last week and there should be update on the €49mil Just Transition fund Grant and the new date for DFS completion this week or next.
The country has also received a 8bn bid for a Gigafactory and EMHs new site is big enough for a Gigafactory also. News can come in relation to this anytime now.
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“The gigafactory project is one of the strategic priorities of the government, and it is in our interest to have the entire chain from lithium mining through the gigafactory, i.e. battery production, to the final products in the Czech Republic,” said Fiala said at a press conference on Wednesday
https://centraleuropeantimes.com/2024/03/mystery-ev-firm-to-build-eur-8bn-plant-in-czechia/
Czechia will host a EUR 7.9bn electric vehicle (EV) battery in Karvina, east Czechia, funded by a foreign investor, the Czech government announced on Thursday, 7 March.
-
The first call for grant applications under the JTF opened on 14 November 2022 and closes on 31 December 2023.
Given the total amount which may be applied for by the eleven designated Strategic Projects in the Usti region in the first call is CZK 8.3B (approx €350M) and that the funds allocated in this first call from the Just Transition Fund to these Strategic Projects totals CZK7.3B (approx €300M), although there can be no certainty, the Company is confident that Cinovec will receive a significant portion of the funds applied for from the JTF for the Project.
Accordingly, Geomet s.r.o (the Cinovec project company) will apply for JTF Grant funding for the maximum amount of CZK 1.2B (approx €49M).
-
As Europe's largest hard-rock lithium mining and processing project, the Cinovec Project is applying for and is expected to receive Strategic Project designation under the CRMA. The Project has already been granted Strategic Process status under the EU's Just Transition Fund.
https://www.linkedin.com/posts/european-metals_petr-fiala-on-x-activity-7103677595589705730-uHz8?utm_source=share&utm_medium=member_android
https://x.com/MarosSefcovic/status/1793905804376174670?t=Gkkbc0uz3WboJX-9PbsOSg&s=19
Lot of messages today from people who said it was pathetic to post on vane holiday weekends the last time there was one. Interesting
What is a vane holiday weekend????
Our research reveals the scale of the EU’s dependency on imports for critical minerals needed for the green transition - here’s how that can change .
https://theconversation.com/our-research-reveals-the-scale-of-the-eus-dependency-on-imports-for-critical-minerals-needed-for-the-green-transition-heres-how-that-can-change-230244
Hahahahahahahahahahahahahahahahahahahh
I have no other words.
Please can you go and irritate shareholders on another site where you don't own any shares.
Sorry mate, I don't follow extremist left wing woke ideologies that people with different view points should not have the freedom to speak.
Of you can't win a debate with rational reasoning there's a high probability you're wrong.