Bradda Head Lithium exceeds targets, secures US$3 million royalty and moves closer to production. Watch the video here.
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Reproduced with the explicit consent of the Telegram poster. In several bits. Enjoy the journey!
Notes from the AGM
The following is a personal summary of the 2024 AGM.
Attendance:
There were 70+ shareholders in attendance, including a number of familiar names from Telegram. Notable guest attendee included Cevdet Caner.
Most of the early-investing shareholders were in attendance.
Open.
AGM opened with voting on resolutions. All resolutions passed as per RNS.
Cevdet Caner.
Mr Caner attended the AGM, and was invited to give comments on the recent fundraising, and his investment vision.
NUI have been in discussions with PXC for over 12 months, and a friendly relationship has been developed.
PXC is NUI’s first foray into critical metals, but certainly not the last. In fact there is an investment in the pipeline that will be announced imminently. This backs up their commitment to metals, and PXC in particular.
PXC is a long-term relationship, and he is very supportive of the Board, and the direction they are taking the company. He isn’t seeking a seat on the board as he trusts the management stewardship.
He realises China’s dominance, and wants there to be western champions. Phoenix fits this mould.
He’s fully behind us, and supports any other “strategic investment” that needs to be made to underpin the strategy. This, to me, hinted at M&A.
He realises there is room for consolidation in this space, and sees PXC in the right place at the right time for this.
Other attendees had more time with Cevdet than I did, so will be able to give their own views of conversations outside of the AGM formalities.
But anyone doubting NUI’s intentions is misguided, in my belief.
He even made comment of how the company needs to look to the “next generation of investors”, and tailor the PR and messaging accordingly.
He’s in this for the long haul.
Part 2:
Q&A.
There was an engaging Q&A that followed the AGM formalities.
There were some questions that were asked that couldn’t be answered, others were answered with a passion. Academy mentioned this in his earlier post.
Some noteworthy questions included:
How long until we will start to target the sulphides?
This is hard to determine. We will basically mine the oxides first, and then the bottom of the pit will form the top of the sulphide mining area. The sulphides are still an unknown from a resource persoective, but it’s clear to all that there is mineralisation down there, but we will come to it in due course. All focus is on the oxides right now.
NGO’s and the permitting process – What impact will the NGO’s have on permitting?
Ryan speaks to various NGO’s on a weekly basis, and has been very transparent with the process we are going to follow. There are no water issues, it’s an old mining town, and on brownfield ground. If Empire cannot get permitted then nothing will. But that’s not to say that thre NGO’s won’t make noise.
It’s similar for residents. Some are for, some are against. But we are focussed on an environmentally friendly, community friendly process that works for all.
Are the directors still locked out from trading?
Per the Nomad, yes, directors are unable to trade right now (likely owing to the PFS).
When will the Plan of Operation be submitted for approval?
Ryan stated September. But this is Ryan-time, which is usually pesimistic. Summer submission most likely. The company will be given visibility of likely decision way ahead of the actiual deciosn. Likey by 3 months or more.
When will Konnex have to contribute or dilute?
This is a fluiod situation, and no hard date is in place. The relationship remains friendly, and it’s highly likely that they will find the money for their share of ther funding.
Is M&A likely?
Refer back to Cevdet Caner’s comments from earlier.
Are we still talking to other Institutions / investors?
Numerous conversations are taking place all the time. ESG funds, other financers, even old financers that haven’t gone away.
We can issue up to $300m in bonds, so there should always be money available if needed.
Part 3:
What news flow can we expect for the rest of the year?
Financing is now in place, so all focus is now on permits and building the mine. These things can mostly take place in parrallel.
News will be mostly internal milestones. PFS, POO submission, Equipment purchase, construction phases, equipment arrival etc.
We are now focused on mine construction, and on the path to being a producer.
Summer will see a number of broker notes and analysis released, which should give a fair value to the assets. Today’s price is not a fair valuation.
What will be the next phase after the oxides?
Drilling will take place across the various assets (Navarre, RS etc), but all the focus is currently on Empire.
First production?
Late ’25, early ’26. It’s all based on permit approval now.
Questions were also asked regarding financial valuations, extraction processes etc, but nobody was in a position to fully answer these questions publicly. We need to wait for the PFS.
Key takeways
Firstly, AGM’s are worh going to. Reading this report gives you an insight into what was discussed, but being in the room, looking people in the eyes, reading body language, and asking direct questions are invaluable.,
Secondly, listening to Cevdet’s intentions gave a huge degree of comfort. He is committed to the green revolution, and is committed to PXC. With 25% of the company, he wants this to succeecd, and is giving the baord his full support to achieve this.
Lastly, we are now on the path to production. The major finance hurdle has been overcome, and we have a strong shareholder base to provide stability going forward. A lot of work has gone into the P.O.O, sustainability, relationship-building, and analysis. This hard work is about to pay off for all of us, and whatever your view, PXC will be a producer of metals within the next 18 months.
It would be great to hear the views of other attendees.
See you all there next year,