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Should we sell and buy LPI?...
Funact,
Meh, I would not buy LPI just yet. Watch for a sign from Heaven... if BYD, Tianqi, Ganfeng, Rosatom (or even POSCO) starts buying heavy into LPI then I would try to pick some up. LPI still needs a powerful huge financial backer if they want to expand. For Americans you most likely can't buy LPI on the Australian Exchange, you will have to buy LTHHF on the OTC which will cost you $54 in "assisted" broker's fees instead of the normal $4.95 for each transaction. LTHHF is so thinly traded that you will go insane in a rush ever trying to sell any shares you might accumulate.
For us, buying MSB is the much better bet... I am still trying to figure out how to get a position in MSB.
There are 12 lithium miners vying for the Codelco lithium properties Click Here. Whoever wins that bid will likely start a quiet program to acquire our LIEG/MSB property to make it contiguous (or simultaneously operated as a cousin to their new Atacama property) to the Codelco property. Now if you magically could see into the future and pre-invest in that winning bidder (of the 12) then you will surely have a nice solid little gold mine in your portfolio.
The Doctor
LPI_and_MSB sitting in a tree K.I.S.S.I.N.G (new_PowerPoint)
http://media.abnnewswire.net/media/en/docs/ASX-LPI-2A1025111.pdf
... no mention of Bearing sitting in the tree K.I.S.S.I.N.G anything.
Awwww that's too bad.
The Doctor
02/16/17_I_said_we_were_worth_48M shares_of_BRGRF...not_16M
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=128771587
If Bearing wants to stay in the game (esp if wanting to use today's miserable pps) then it is time to make some adjustments.
The Doctor
Before the Merger you own_17.7%_of_entire Maricunga_Project.
To LIEG Shareholders,
With YOUR now 556,124,331 shares of LIEG you in total own 17.7% of the NewCo asset.
Under the merger LIEG becomes 41.83% owner in Bearing after trading in our shares (in effect through virtual Reverse Split).
Under the merger the existing Bearing shareholders become 58.17% owner in Bearing.
After the merger the Former LIEG shareholders become 7.4% owners in the NewCo asset._ 7.4%
After the merger Former Bearing shareholders become 10.3% owners in the NewCo asset. 10.3%
After the merger LPI is still 50% owner of the NewCo asset._________________________ 50.0%
After the merger MSB is still 32.3% owner of the NewCo asset._______________________ 32.3%
________________________________________________________________________100.0%
After the merger how much money will old former LIEG shareholders receive for giving away 10.3% of the NewCo asset to (pre-merger) Bearing shareholders?
Answer: zero, nada, el zippo, nyet, butkus, $0.00
Calculations based on a $.020pps for LIEG, with a $.70pps for BRGRF.
Close your eyes.
Imagine you have 100,000 shares of LIEG in 100% (adjusted by your proportion) ownership of the total 17.7% NewCo asset before the merger.
After the merger you will have (in effect) an asset worth only 41,830 LIEG shares.
Then the plan is to ram those 41,830 LIEG shares down your throat and you will excrete 2,876 BRGRF shares. Voila.
The Doctor
Thanks Doc for the reply...
Funact,
The only way we at LIEG can resist the merger is if Uncle Posco changes its pre-vote from yes to NO... then when combined with a backlash of small LIEG investors voting NO this merger might indeed be sheet-canned.
One newly-developed huge factor now is that Tianqi is building an awe-inspiring $400,000,000 lithium processing plant in Kwinana, Western Australia Click Here.
As you know LPI has two large ever-expanding lithium mining operations in Australia. LPI (and our old partner MSB) could easily strike a deal with Tianqi to co-process (tolling) the LPI Australian-mined lithium into LCE or maybe even custom blend lithium hydroxide in the future right in Western Australia. Logistics hassle factors for LPI would overnight become only 25% that of dealing with "I-want-the-most-for-me" Banana Republic Chile with its myopic leftists demanding 35% blood money from Chilean lithium miners off the top. Plus in Australia you wouldn't have to deal with any local state-level parasite bureaucrats (who are surprisingly autonomous) here in Chile continually throwing red tape in your face and singing the manana song until they get their kickbacks... since Australia is part of the civilized "organized" world with rule-of-law 2 or 3 times more stronger/vibrant than anything in South America. Plus in Australia they use much less tear gas.
LPI possibly could get disgusted with this whole thing in Chile where hanger-ons (riding lazily in the back seat contributing nothing) are leaping on the bandwagon and LPI could next simply throw their well-worn dusty rugged manly hands up in the air with minimal losses. Without that $15.05M dowry payment from LPI, Beering would drop us like a hot potato.
Beering had one piddling assigned task to do in the last 7 months... bring some large private investment money or Institutional investor (from their cherished private black book) into the Maricunga deal. Can anyone anywhere name one new large private investor or Institutional investor who has invested in NewCo or our stock in the last 7 months?... no, that's what I thought. We (LIEG) are slowly dehydrating... and being systematically DILUTED.
The Doctor
Hey Doc- With your seemingly very negative view...
Funact,
I only have a negative view of Bearing... plus I hate all born-last-night Canadian miners in general from past investments polluted by Canadians.
34.76 LIEG shares at $.02pps each = $.6952 today.
34.76 LIEG shares ripped from our hands and forcefully sold to BRGRF for $.70 on merger day is a profit of only $.0048 total and a joke now given our daily-increasing potential to other "real" miners sashaying around in Santiago today dropping gobs of expense account cash like water here locally, for example Tianqi or Rosatom or Ganfeng who I think want to talk turkey with us but our people can't legally interface with them until after December 31, 2017.
I also have a strange feeling in my gut that LPI can't stand being in the same room with Bearing hence the reason you never see pictures of them together shaking hands or poring over geology maps or digging token chunks salt in Maricunga amid red ribbons, white hardhats, silver-plated shovels, and pretty girls in short-shorts.
This merger is nothing but a rape job taking our assets at par (ie at par today, but maybe lower tomorrow) and trading them for pretty pieces of Canadian paper (which believe me... tastes awful).
We need to "resist" through December 31, 2017 until a whole new ballgame opens up. My hunch is that Martin Borda of MSB is friends already with the new incoming Chilean President and when Martin lowers the checkered flag for us to explode upwards then the good times will roll. If it were to turn out that Martin does not like Bearing either then we got huge problems if we marry these Canadian humps currently metastasizing on our backs.
The Doctor
Who do you think is_controlling_LPI?... well,_let_me_tell_you
Info3, I hope you can have the following text translated into chinese and someone can read it to your lazy due-diligence-challenged posterior section.
The LPI board of directors are listed here:
http://www.lithiumpowerinternational.com/team/
We at LIEG watch Martin Holland bery bery closely.
The key (with muscle) shareholders in LPI are:
21,000,001 shares (18.80%) Holland International Pty Ltd
15,857,143 shares (14.19%) Chifley Portfolios Pty Ltd
14,300,000 shares (12.80%) Great Southern Holdings Pty Ltd
For our key purposes and best interests it is of paramount importance to understand that well-positioned Chilean-businessman Martin Borda who created MSB in 2013 is in the LPI camp with prestige and monumental authority. All our LIEG directors (including those who abandoned us for Vancouver) bow(ed) in deference to Martin Borda. Martin Borda MSB is a partner to LPI. I wouldn't be surprised at all to hear he has already achieved insider status at LPI. My guess is that if Martin Borda says this whole Maricunga deal is dead tomorrow then we are unequivocally dead tomorrow.
My impression is that Martin much prefers to vacation in Australia... not Vancouver. But, I suppose we will have to check with his travel assistant to know for sure.
And foremost to understand today you must never forget that MSB is not merging with Bearing... that would be yuckey-poo.
Since you are so interested in knowing who controls what at LPI then you will want to read this agreement:
https://www.lawinsider.com/contracts/7w3JT12l7PYBKwKm7BevYz/bearing-resources-ltd/1703253/2017-06-16
followed by this one:
http://www.li3energy.com/about/strategic-investors/index.htm
If we (LIEG) are not sucked into this merger and should then financially fail it is important to understand the we (LIEG) owe MSB $454,901.
If MSB files a first rights lien against us for this debt then Martin Borda could in theory with some finagling become our new Big Daddy Warbucks... which I would vote for in a heartbeat. If you seriously want new improved management then pray for Martin Borda.
I trust that after answering your latest pesky child-mosquito question herein that you are sufficiently satiated for at least the next 24 hours. We adults here are growing weary of your incessant drooling on our board.
The Doctor
LPI, Help save us at_LIEG. Simply_withhold_support_until_after_Dec 31, 2017
when this abomination will suffocate and warp into a stillborn on its own.
Fellow LIEG Shareholders, Vote NO on the merger.
The Doctor
LPI, Hold the Engineer's_signed_&_embossed_sealed NI 43-101
I am thinking no bank would make us a $257M loan for Capex over 26 years without the original NI 43-101 signed & embossed sealed by the PE of record. Those docs are worth their weight in gold.
The Doctor
LPI, Hold the $15,015,000
You (like it or not) control our destiny now.
The Doctor
Info3/Win3car, Bearing can_NOT_do_a_better_job. Vote_NO_on_merger.
If you want a second opinion, then render a second opinion yourself or bring in a real second opinion, but I seriously doubt you click-bait ding dongs have the brains to thoroughly analyze anything.
You paid chinese clickers (barely able to properly form one single understandable sentence in English) trying to hijack our board over the last few days are a pox on intelligent discourse. Go back to China and worry about the air pollution in Beijing, and let us real long-term LIEG shareholders worry about our own dilemmas here. Or, better yet, go buy some BRGRF stock (which you love so much) and run the price up.
The Doctor
LIEG printing shares daily and...
anyone with more than 140-character size simpleton's brain (eg Win3car and alias info3) should be able to easily ascertain it is LIEG running the printing press.
Go to page 12 of the merger docs Click Here and read:
Q: Do any of Li3’s directors or officers have interests in the merger that may differ from or be in addition to my interests as a stockholder?
A: Yes. In conjunction with the merger, certain executive officers and directors of Li3 will receive employment with Bearing and equity incentive awards. Please see the section of this proxy statement/prospectus titled “Interests of Certain Executive Officers and Directors in the Merger.”
I can not find in the merger docs what the "incentive awards" are for our former LIEG executives who left us and went over to the Bearing side is... but let's take a wild guess. Could the incentive award be a major portion of the newly printed 39,091,544 shares? If indeed that incentive is coming out of those new 39,091,544 shares then it is you and me paying the bonus/tax to these former executives... who (let's face it) previously guided us right into this sad state we are in today having to crawl on our bellies pants down for financial help from vampirish Canadians. Let's hope the SEC finds a correlation/clarification for us shareholders to understand soon.
I will ask the question again. Who in LIEG is looking out for our little guy shareholders' well being? I know I can't see who it is especially after this heart breaker.
The Doctor
We've been diluted 7.56%
Click Here
It now takes 34.76 LIEG shares to buy one share of BRGRF when originally it was sold to us as 31 LIEG shares would buy one share of BRGRF.
Vote NO on the merger.
The Doctor
Info3, the problem is you have_no_question_ever_answerable.
You are but a little child mosquito buzzing around and annoying adults here with much greater thoughts on their minds than your baseless tripe.
The Doctor
LIEG_shareholders UNITE!_it_is_time_to read the merger_docs_in_detail.
This SEC document will take 2-4 minutes to load.
https://www.sec.gov/Archives/edgar/data/1703253/000164033417001384/bea_f4.htm
In my last spreadsheet on LIEG worth dated July 14, 2017 I said the company had issued 517,032,787 shares.
I see now that we have been diluted 7.56% further by 39,091,544 shares giving us a new total share count of 556,124,331 shares.
We're getting killed my friends through the back door. It is little wonder now why we can't get our share price above $.02pps anymore.
Instead of surrendering 31 shares to get one share of BRGRF originally, it will now cost you 34.76 shares of LIEG to get one share of BRGRF currently trading at a miserable $.71pps down another 3.4% today. (ie 556,124,331 divided by 16,000,000 = 34.76).
With friends like this in Vancouver... who needs any more enemies.
Hindsight is 20/20... we should have bailed out when this stock was trading at $.035pps
The Doctor
Doctor I need some advice, how much...
did you say Maricunga is worth from the study?
Info3,
From page 10 of the last LIEG 10Q you will read:
As of March 31, 2017, the Company had no source of current revenue, a cash balance on hand of $1,631 and negative working capital of $1,901,559.
The Company’s current negative working capital position is not sufficient to maintain its basic operations for at least the next 12 months.
Click Here for most current 10Q
If you are truly concerned about knowing the details of our (LIEG) Maricunga worth, I suppose you could look at the last March 31, 2017 balance sheet and perhaps glean the numbers you need to satisfy your question.
Consolidated Balance Sheets - USD ($) Mar. 31, 2017
Current assets:
Cash $ 1,631
Prepaid expenses and advances 68,043
Total current assets 69,674
Equity investment in Minera Li 6,160,771
Total assets 6,230,445
Current liabilities:
Accounts payable 399,353
Accrued expenses 357,711
Common stock payable 236,678
Notes payable 50,000
Convertible notes payable, net of discount of $52,411 and $349,081 respectively 472,590
Long-term notes payable to MSB SpA 454,901
Total current liabilities 1,971,233
Long-term notes payable to MSB 0
Total liabilities 1,971,233
Commitments and contingencies 0
Common stock subject to rescission, 65,000 shares issued and outstanding 3,041
Stockholders' Equity:
Preferred stock, $0.001 par value, 10,000,000 shares authorized; no shares issued and outstanding 0
Common stock, $0.001 par value, 990,000,000 shares authorized; 502,829,707 and 495,153,347 shares issued and outstanding, respectively 502,829
Additional paid-in capital 72,697,881
Accumulated deficit (68,944,539)
Total stockholders' equity 4,256,171
Total liabilities and stockholders' equity $ 6,230,445
I hope this helps you in your search for truth.
The Doctor
If Bolivia beats us into production then you know
we're managed by complete incompetents/losers.
The race is on... Gentlemen, start your engines! Rev up your machines! Proceed to the starting line!
Click here for the July 17 story on Bolivia's new lithium offense.
These Bolivians are next door to us... and could very likely will use Chilean seaports to send their new LCE to China... while we are sitting there on the curb still waiting for our mining permit/export-quota approval papers.
The Doctor
PS, with respect to Eva Morales' offensive on pumping up the lithium mining in Bolivia let's call talking head Chile's Mining Minister Aurora Williams for her assessment/counter-measures and listen to her empty-headed babble for 2 hours about nothing of any consequence or interest to anyone anywhere.
Doc, Lithium_Power (Australia) is driving Maricunga...that's_hilarious.
Wincar3,
You're delusional. LPI is driving Pilgangoora and Greenbushes in Australia... that's where the big money is for them. The only thing LPI is "driving" so far in Chile is paying for the onsite testing/monitoring with skeleton staff... and physically holding the legally signed&sealed results from us in torment until the end of August (or even longer).
If you think LPI is the big driver then ask them where the $15.05M second tranche check is that was due LIEG & MSB two months ago. Do you honestly think Beering is going to marry us if we don't have that check in the bank? Ha-ha, you're insane.
There is only one thing driving Maricunga and Atacama... everyone is holding their breath to see if Julio Ponce shuts down or severely curtails SQM sending thousands of Chilean miners/suppliers/salaried-people to the unemployment rolls and then tying everybody else up (including wannabe junior miners like us) in the courts for the next 5 years with nonstop suits/injunctions while he continues capturing the entire world wide lithium market with his Argentina operations leaving Chile to suckle on the hind teat. Why do you think Chile lowered it's rate of 2017 growth from 2.25% to 1.5%?
Click Here.
And what will eventually "drive" this deal on our humble behalf is Chilean Senor MSB... so don't kid yourself into thinking LPI is your savior.
The Doctor
-----------------------
Doc,
Lithium Power (Australia) is driving Maricunga. BRZ is in the back seat and doesn't even have to stay awake.
Do you have a problem with Australian miners?
Again we disagree!
Info3,
OK, we will check back with you in 2-3 years on the permit status then... especially, if those lily-white pasty-face gringos El Norte up in Canada get involved in (ie contaminate) this whole deal.
The Doctor
There are some big changes_in_Maricunga_in_the_near_future!!_Ha-ha.
Info3,
Yeah... GSR could buy into SQM big time (in Maricunga) and then refused to buy us (their next door neighbor). Then we will be sitting high and dry with no where to go as they crank up production and swamp us... and possibly "accidentally under suck" our brine? Are they upstream to us?
https://www.reuters.com/article/us-sqm-m-a-china-idUSKBN19Q0K2
Also, LPI could maybe decide they have more then enough cash-paying mining work right in their own backyard in Australia with almost zero hassles and then simply walk away from everything in this two-bit banana republic Chile.
Info3, sooooo do you actually have any "real" changes you would like to share with us LIEG shareholders today?
The Doctor
First off,
Wincar,
I am not bitter at all. I am primarily invested in LIEG at under 2 cents. I could pull out from LIEG now and still come out smelling like a rose (or at least as good as primrose jasmine flower).
I am not talking about the Big Canadian Miners... and we're not even close to a $40M operation. I am talking about what happens to 90% of the junior miners that get run into the ground or short-circuited by Canadians (eg GWM Great Western Minerals). And Beering is not much more than a junior, junior, junior Canadian money-man cum repackaged paper miner.
You're right, somebody will indeed develop Maricunga. I just hope hope it is our normal regular guys team of LPI/MSB/LIEG-Posco (aka NewCo). If this merger flops then the primary note-holders on LIEG step in (and with much renewed glee/zest I am betting now since we will have slyly survived the make-or-break nuut-cruncher 2017 year)... so let's hope the new company principals/BOD (eg Posco) make room for us little guy shareholders. And then Beering can happily instead attend to their parties/whatever up in Vancouver and leave us miners to our mining. Then everybody will be happy... maybe even you.
The Doctor
While you may have had bad luck with Canadian miners...
blah, blah, blah...
Wincar3,
There are no "good stories out there" for Canadian Junior Miners which is what we here penny stock traders are investing in (ie in junior miners)... every Canadian Junior Miner (penny stock) investor eventually takes it right in the shorts from those backstabbing fat lazy Canadians El Norte as they 90% of the time suck out all the assets of the junior miners and then quietly resign their key management positions (usually due to old age, family or health problems) "to altruistically let new blood in to run the company" who always turn out to be clueless kids (update: annoying millennial kids) and nothing more than empty talking heads. We all know the routine.
You ask why we are at 2 cents?
1. Have we made any money in the last 10 years? Answer: No
2. Do we have an approved LCE tonnage from the state of Chile approved for export? Answer: No.
3. Do we have an approved permit in hand from Chile to full-time mine lithium? Answer: No.
4. Has anyone told us yet if we will have an approved water allocation (through the Environmental Board) to actually mine the Maricunga Salar? Answer: No.
5. Do we still have a CEO or even a Chairman on the LIEG payroll drawing their salary from the LIEG bank account? Answer: No.
6. So does anyone know who is protecting us LIEG shareholders now? Answer: No.
7. Do we have in hand a signed & embossed sealed (by a registered engineer) legal "Take it to the Bank" NI 43-101 and certified JORC? Answer: No.
8. LPI was AUD$.32pps on July 10. LPI announced the Maricunga mine had more than tripled the project resource (lithium) on July 12.
Did LPI pps triple in value? Answer: No.
Did LPI pps double in value? Answer: No.
Did LPI pps rise 50% in value? Answer: No.
Did LPI pps rise a paltry 5% in value? Answer: No.
LPI in fact fell to AUD$.295pps last Friday.
That big LPI announcement went over like a lead balloon.
9. Can anyone tell us where our second tranche US$15.05M is and when it (ie our proportionate share) is going to be deposited in our bank account? Answer: No.
You say Bearing is an easy double by New Year's Day? Based on what? Really... I what to know based on what? Do you have the brains to offer us any spreadsheet calculations or even an informal proforma that supports this meteoric rise? Do you even know if Phase 2 is underway or has ground to a dead stop? Answer: __
Clearly you are a Bearing shareholder and it has probably just dawned on you that BRGRF will never rise more than 31 times LIEG plus 10 cents max. I will bet you bought into that pig on the high side... maybe not at $1.41pps but you are probably in at $1.25 so you are standing to lose a bundle here if some major shareholders in LIEG get cold feet and withdraw their previous merger pre-vote. PS, and good luck on trying to get back the Bearing money you lent us if the merger goes south... we sadly don't have a good reputation on paying loans back, tsk tsk... that's a "challenging" problem for us but we're working on rectifying that shortfall in our personality.
I think you need to go back to your BRGRF board and pump up your fellow shareholders to inflate the stock price on your side... then things could look much more artificially rosy for you and us. You preaching to us LIEG shareholders on the LIEG board is useless. If BRGRF doesn't rise then we all sink when/if the merger infects us.
Plus you better hope the SEC doesn't render a decision that this is one big this smoke & mirrors switcher-roo... because then you are going to lose everything.
The Doctor
Just curious, but wouldn't Bearing be worth more
... ha-ha, in our wildest dreams.
Win3car,
After the merger we LIEG shareholders would be forced to give 31 shares of LIEG for one share of BRGRF. Thirty-one shares of LIEG is worth $.02 each for total of $.62
One share of BRGRF is worth $.74 so there is a slight advantage of gaining 12 cents on each 31 share packet of LIEG stock.
If you had 100,000 shares of LIEG and surrendered these shares for 3,225 shares of BRGRF (100,000/31) you would then be $387 richer but you would now regrettably have a company run by Canadians and I am sure all of us here have horror stories to tell about owning mining stocks run by Canadians that we have bought in the past.
If you have noticed in the past week especially BRGRF has been trading on very low volumes (eg last Friday 42K) and somebody is carefully painting the tape before closing in order give the illusion BRGRF is worth more than 31 times LIEG. The norm is BRGRF simply trades at 31 times LIEG when this devious stock manager is off painting someone else's pig.
The fear for us at LIEG in addition to having blood-eating, newly-born-miner, do-nothing-for-us, copy-catting Canadians as our overlords is that once the BRGRF traders know the merger is actually approved that they let BRGRF go into free fall back down to a natural resting point of $.50pps and in the process crush LIEG down to $.014pps or below. If our LIEG stock sinks to $.0124 then your 100,000 shares of LIEG instead of being worth $387 more is worth $387 less than say it was just last Friday.
Our dilemma today is that BRGRF has no impressive money-making assets making real eatable money (for us) now... they seem to only rise and fall on the perceived value of LIEG. We at LIEG are simply looking into a BRGRF smokey mirror seeing back ourselves... along with the image of our own reflected dusty withered bootstraps.
My guess is that until the voting day of the merger some little nasty prostitute trader is going to keep BRGRF mechanically painted 10 cents higher than 31 times the LIEG pps and then after the voting day (but before the merger date) all us LIEG shareholders are going to take it right in the shorts as our bottom plus the old well-worn silky lifelines to LPI & MSB falls out from under us.
The Doctor
In a perfect world we are_worth $.070pps_today.
LPI's brand new YouTube video pre-leaks some of the JORC information we are likely to see confirmed in August when LPI publishes the signed & sealed version. It is important to note that LPI sees their Maricunga asset worth worth AUD$1.24pps (see 32secs into the 3:19min video) which converts to USD$.965pps
To achieve a USD$.965pps for LPI we need to see these revenue streams for the three partners in NewCo JV:
Income/Yr________CapRate_Company Value__Shares_____US$pps_AUD$pps
LPI_50.0% = $22,351,000 7.0% $319,300,000__331,000,000__$0.965 __$1.24
MSB 32.3% = $14,439,000 7.0% $206,271,429
LIEG 17.7% = $7,912,000 7.0% $113,028,571 __517,032,787__$0.219 ___ NA
_________________________$638,600,000
As we go to the 1:03min mark in the video we see the mine life (LOM) is now 26 years. At the 1:42min mark in the video we see the base case export was originally 20,000 Tonnes per year with all 5 trailing scenarios now showing the newly preferred 25,000 Tonnes per year. In reviewing these calculations it is my opinion that it is totally impossible to make the AUD$1.24pps on any yearly export Tonnage less than 25,000 Tonnes therefore I am reverse engineering the Tricky Dicky Fudge Packer Factor to produce a yearly export output of 25,000 Tonnes LCE.
Lithium Carbonate Equivalent = 2,150,000 Tonnes
Price Li2CO3 = $10,000 /Tonne
26-year life span of mine LOM = 26 Years
Life of mine Gross value = $21,500,000,000
Tonnes production 100% capability per year = 83,000 Tonnes
Tonnes production 50% w/Conversion per Yr = 41,500 Tonnes
Tricky Dicky Fudge Packer factor (SUBTRACT) = 39.0%
Tonnes LCE production capability per year = 25,000 Tonnes
Mine gross revenue per year = $250,000,000
Operating Expenses per Tonne itemized
Chemicals & reagents $1,615
Salt Removal $244
Energy $183
Manpower $274
Employee services $305
Maintenance $122
Transport & sales $183
G&A $122
Operating Expense per tonne $3,050 = ($76,250,000)
Maintenance per year. See above. = $0
Depreciate Capex of US$257M over 26 years = ($9,885,000)
Revenue after expenses ST = $163,865,000
National Royalty 3% = ($4,916,000)
Local royalties / community payment / Tax 35% = ($57,353,000)
EBITA = $101,596,000
Estimated Income 44% of EBITA 44% = $44,702,000
LPI income per year 50.0% = $22,351,000
Minera Salar Blanco income per year 32.3% = $14,439,000
LIEG income per year 17.7% = $7,912,000
Value of LIEG at Cap Rate 7.0% = $113,028,571
Number of LIEG shares = 517,032,787
Projected value of LIEG share March 2019 = $0.219 PPS
Interest Rate = 4.0%
Nper. Number of months in study = 20
Minimum appreciation per month per share 5.5% = $0.012 /mon/share
Future Value 2019 = $0.219 PPS
Type (payment at beginning) = 1
Value of LIEG share July 2017 = $0.070 PPS
The Doctor
LPI has made an informative YouTube video update.
Click Here for the July 11 video.
Does anyone have any idea where on earth the Bearing video update is? I can't for the life of me find it. Does anyone have any pictures of Bearing guys actually on the site in Maricunga doing mining things? Sadly I can't find any of those pictures either.
The Doctor
Could_SQM_finally_be_seeing_the_handwriting_on_the wall, and leaving Chile?
And moving a cool US$110 million over into Kidman Resources in Western Australia... for good/safe keeping.
It could be that SQM is finally facing up to the reality that they had a good run in Chile, but the time has long ago come to move on (similar to Derek Jeter leaving the 2014 Yankees) and to seek new fortunes in new lands... specifically Western Australia where they don't rag/whine on about Pinochet every single day on and on and on).
https://www.businessnews.com.au/article/Chilean-giant-buys-into-WA-lithium-mine
Alas, poor Yorrick SQM, we knew him well... and we shall miss thee. But on thine flight outta' town... we who remain in thy stead to carry on in Chile will be sure to fill the vacuum left by ye with haste.
The Doctor
PS, you won't see any pictures of Pinochet hanging on the walls in our offices.
Our Holy_Grail (note: and_it_does_pass_through_Codelco) is written.
A very astute Bloomberg writer, Laura Millan Lombrana, based in Santiago Chile has written a most plausible and enlightening blueprint to approaching/developing the Maricunga salar and it runs smack dab right through Codelco as I began hinting at a few months ago. This obscure article oddly appears as some investment guidance or over plan pinpoint-directed to her Portuguese speaking audience, but is amazingly quite applicable to little guy junior miners like us in the LIEG/MSB/LPI swarm. What is significant is that the conclusion Laura Millan Lombrana puts forward clearly has Codelco getting majorly in bed and kissy-face as first best choice with NewCo JV (that's us).
The only copy I could find is written in Portuguese Click Here, I have run the entire article through Google Translate and it follows:
(Bloomberg) - The world's largest copper smuggler has business to do before it can claim to be a lithium producer.
Codelco is looking for a partner to develop a lithium project in the salt desert of Maricunga, in northern Chile. But Maricunga's ownership rights held by the state-owned company alone are insufficient to sustain a mine, company chairman Oscar Landerretche said. This means that companies interested in partnering with Codelco will need to offer a workable plan to bring together some of the more than 20 people and companies that own mining rights on the new lithium frontier in Chile.
"There are many owners and a central part of the business model is that those who win will offer a way to consolidate Maricunga," Landerretche said in an interview at his Santiago office. "Otherwise, it is impossible for a project in this salt desert to become viable."
Demand for ore (LCE) that is a key component of rechargeable batteries is expected to increase about 15 percent a year in the coming years as companies such as Tesla begin selling electric cars to the market more widely. Chile has the largest known lithium reserves and all its exports come from the Atacama salt desert. Maricunga should be next.
Among the companies that have rights in the area are Soc. Química & Minera de Chile, one of the largest lithium producers in the world. But SQM is involved in a dispute with the authorities about the conditions of its concession in the Atacama, which constitutes an obstacle for Codelco to form a partnership with the company in Maricunga.
"As a state-owned company, it will always be better for Codelco to work with companies that have no conflict with the Chilean state," Landerretche said. "We are being very neutral with the owners of the rights. If they participate in the offer, they will be treated like any other competitor."
SQM carried out preliminary explorations and conceptual designs in Maricunga, the Santiago-based company said in an e-mail response to questions. "We would be willing to work with Codelco or other companies if there are synergies and corresponding interests."
Other companies with rights in Maricunga include NewCo, which belongs to Lithium Power International, based in Sydney, Lima-based Li3 Energy, and Chile's Minera Salar Blanco. NewCo is expected to complete a feasibility study for its Maricunga project in late 2018.
Second best
The remaining Maricunga rights belong to smallholders.
Codelco has received demonstrations of interest from many partners for lithium-producing partners in a selection process that is expected to be completed by the end of the year, Landerretche said.
"It is not yet clear if only one company will join us or if there will be several," he said, declining to identify the candidates. "The business model will be defined in the course of the process."
Maricunga is the second best salt desert in Chile after the Atacama, said Daniela Desormeaux, CEO of signumBOX consultancy, in an interview at his Santiago office.
Bidders need to create a blueprint to explore the area and develop a project for brine processing and sale of lithium. In addition, they must take into account other technical difficulties, such as higher altitude than the Atacama.
English version: Patricia Xavier in Sao Paulo, pbernardino1@bloomberg.net.
Reporter of the original story: Laura Millan Lombrana in Santiago, lmillanlombr@bloomberg.net.
This article by Laura is "comfort food" for us weary battered LIEG shareholders and actually reaffirms my contention that LIEG/MSB/LPI by itself (without any hanger-ons or parasites/leeches) could indeed be the main player on the Maricunga Salar given Chile's reluctance to get jiggy with SQM anymore (which is whole other exhausting story in itself).
The Doctor
To LIEG shareholders:
Info3,
First off the company I am talking about is LIEG... not LEIG ( which you are correct, I know nothing about).
Secondly, humor us and name one thing about LIEG and passive savior Bearing that I don't know.
And in closing, if you are so smart then please name one thing that you know about LIEG and passive savior Bearing that we (ie the collective us here) don't already know.
The Doctor
Posco, don't let these Canadian_rookie_carpetbaggers bamboozle you.
Vote NO on the merger.
Just ask yourself when was the last time these ding dongs were in the same room with LPI? That alone should be proof enough how far these guys are all alone out in right field... plus they don't even know how to bat. Although I hear they do know how to catch... they're born catchers up there.
The Doctor
Vote NO on the Merger.
By all rights we should have had a nice price jump in PPS today, but no... we're flat as a pancake and Bearing is barely up 2% on only a measly 17,000 shares traded. How depressing this whole sad state we're still stuck in. Wary investors sitting on the sidelines know we're destined to go nowhere with those little newbie frat boys up in Vancouver and they're not buying.
We need LPI to rekindle our old romance... or POSCO to make a serious play for our affections.
We need something new that is at least semi-dynamic here, because us poor LIEG mushrooms-in-the dark clearly got nuthin' once again.
The Doctor
Martin says we can drill even_deeper... she said.
LPI is now saying we could even drill deeper still in Maricunga to add to the total resource again. See paragraph 6 in this article. http://www.proactiveinvestors.com.au/companies/news/180738/lithium-power-international-more-than-triples-lithium-brine-resource-180738.html
Whew, you may have thought you had a lot of lithium last week... well today the amount we have is simply astounding/dizzying Click Here. We have so much lithium it is popping out of our ears today. And just imagine how many bipolar people we will be able to help treat with lithium in the future. Zillions.
The Doctor
In a perfect world we are_worth $.084pps_today.
In Bizarro World the old (May 2017) Tricky Dicky Fudge Packer factor was a crippling 47% to get us down to an "adjusted" targeted 20,000mt LCE for export.
Given we could be looking at a new President in Chile for 2018 I am going to take a free-bird chance here and say our new Tricky Dicky Fudge Packer factor is going to be 0% (normal for a free transparent capitalist society not stomping on the little guys) and we could without breaking a sweat export 54,000mt of LCE per year for 20 years which translates into $540,000,000 gross revenue per year for the NewCo JV.
In that light our next proforma might then look like this:
Lithium Carbonate Equivalent = 2,150,000 Tonnes
Price Li2CO3 = $10,000/Tonne
20-year life span of mine LOM =20 Years
Life of mine Gross value = $21,500,000,000
Tonnes production 100% capability per year = 108,000 Tonnes
Tonnes production 50% w/Conversion per Yr = 54,000 Tonnes
Tricky Dicky Fudge Packer factor (SUBTRACT) = 0.0%
Tonnes LCE production capability per year = 54,000 Tonnes
Mine gross revenue per year = $540,000,000
Operating Expenses per Tonne itmeized
Chemicals & reagents $1,615
Salt Removal $244
Energy $183
Manpower $274
Employee services $305
Maintenance $122
Transport & sales $183
G&A $122
Operating Expense per tonne $3,050 = ($164,700,000)
Maintenance per year. See above. = $0
Depreciate Capex of US$250M over 20 years = ($12,500,000)
Revenue after expenses ST = $362,800,000
National Royalty 3% = ($10,884,000)
Local royalties / community payment / Tax 35% = ($126,980,000)
EBITA = $224,936,000
Estimated Income 35% of EBITA 35% = $78,728,000
LPI income per year 50.0% = $39,364,000
Minera Salar Blanco income per year 32.3% = $25,429,000
LIEG income per year 17.7% = $13,935,000
Value of LIEG at Cap Rate 8% = $174,187,500
Number of LIEG shares = 517,032,787
Projected value of LIEG share March 2019 = $0.337 PPS
Interest Rate = 4.0%
Nper. Number of months in study = 20
Minimum appreciation per month per share 5.0% = $0.017 /mon/share
Future Value 2019 = $0.337 PPS
Type (payment at beginning) = 1
Value of LIEG share July 2017 = $0.084 PPS
The Doctor
It's a GUSHER. 3.7_times_increase_in_LCE, 2.15MT LCE
LPI boilerplate used to to access the Maricunga Update
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01873631
Actual LPI Maricunga July 12, 2017 update (download 45-page pdf from LPI)
http://www.asx.com.au/asxpdf/20170712/pdf/43klj2r12vf78w.pdf
LPI is not publishing the NI 43-101 or the JORC today (ie in this report), these two reports will be forthcoming a later date (see page 32 of 45).
The Doctor
BRGRF is at $.71pps down 2.3%...ugh.
Yuck, can you imagine how you would feel today if you were one of the early investors in this stock (BRGRF) and had paid $1.41pps? You would be wanting to slit your wrists today.
Soooooo... how about those darn Yankees, eh?
Ho hum... Tweedledee, Tweedledum. I ate some possibly bad cheese this morning... my internal trading is halted. I just simply can't do anything on the toilet this afternoon.
The Doctor
OK_kids, it's SHOOOOOOWTIME for us (LIEG)_up_in_the_bleachers!
LPI is ordering a halt in trading effectively immediately up to July 12.
http://www.finnewsnetwork.com.au/CompanyReports/Lithium-Power-International/Lithium-Power-International%2C-Trading-Halt-Request
https://au.investing.com/news/stock-market-news/brief-lithium-power-international-seeks-trading-halt-498618
http://www.proactiveinvestors.com.au/companies/news/180561/lithium-power-international-ltd-to-finalise-maiden-lithium-resource-from-maricunga-180561.html
The pretty FINAL version of the LPI NI 43-101 will be published along with the LPI maiden JORC probably on Monday. You can on the follow-up then look for Jeremy's knee-jerk, lip-sync-ed, strategically edited version on Tuesday or Wednesday I would guess.
If Rosatom is going to make their "tangential" move (prior the wedding) on us as a follow-up to their re-birth as a renewable energy mega-business Click Here then it will happen soon after this new JORC is analyzed back in Moscow.
Things are going to move faster and with much greater precision now.
The Doctor
Dear_Comrade_Rosatom, I hear you only need_to_mail_in a postcard
to get a divorce in Russia.
How exactly does that work?
The Doctor
PS, Dear Uncle Posco, are you 100% sure you are going to vote for the merger? I am thinking Putin might let Trump take out North Korea in exchange for him (ie Trump) not objecting to the Russkies making major serious inroads into South America where Moscow used to foment revolutions that once irritated the 1979-1990 vultures on Wall Street to no end.
OK, which_one_of_youse_guys_is blabbing Maricunga is worth CAN$280M?
It is bad enough we can't find out these kinds of key things in our own publications but we have to hear these kinds of facts/projections/bragging way over in the competitor LICO Energy Metals "space". Click Here.
... and I think you all know already what happens to Blabbers/Leakers in this day and age.
The Doctor
If Russian_Rosatom wins the bidding on Monday_in_Chile then
it is a whole new ballgame in Chile as the Chinese get passed over, marginalized big-time and pushed aside.
http://www.tecnologiaminera.com/tm/x/noticiainternacional.php?id=9319
We might be smart to hire a Russian speaking whiz-bang-go-go engineer to handle our face-time with the "New Kid on the Block" Rosatom Russians if they win this bid as the Russkies will be instant big-bucks major players in Chile by Tuesday. We could hire Kirill Klip Click Here as consultant to give us some good inside tips. He speaks Russian (and Canadian) plus he knows lithium top to bottom.
The Doctor
Glencore (our Daddy) pens_large_cobalt_deal_securing EV_battery supplies for VW
http://in.reuters.com/article/glencore-cobalt-vw-idINKBN19R205
We Katanga Mining investors are just so happy for VW... "Happy Cobalt Day VW! May you prosper and be back for more cobalt... lots more"
The Doctor
PS, oh look. France is drafting plans to end sales of gas and diesel cars by 2040
https://www.nytimes.com/2017/07/06/business/energy-environment/france-cars-ban-gas-diesel.html
I would think VW will be selling lots of electric cars to France well before this ban on gas/diesel cars goes into effect. And electric cars do need cobalt.
Info3, surely you jest... there's barely a half dozen good informational posts even semi-crucial to making an informed decision on LIEG in this entire board. If I wasn't writing, there would be nothing (other than baseless rah-rah hype) here to read or it would be as dull/insipid as the drivel on the BRGRF board where the most profound/enlightening statement is a one-liner saying "Glad i stayed in a little longer. What a run!!" with a simpleton's happy face after it.
On 2/20/15 you last wrote "I hope to start some conversations about Li3 energy. We need to get people talking about this company again and hopefully the government see justice for Li3 !!!" Show me one post in the last two years that has even come close to meeting your desire of 2/20/15 and I will be most amazed. When there is actually something critical to LIEG I will indeed write about it with precision as best I can command, but when there is deliberate strategic silence from our "team" or no visible discernible progress in Phase 2 then I add filler/color to this board so the world won't think us (LIEG) completely broke, non-functional, incompetent, still un-married/un-merged, without one single political connection of substance, and wandering in circles totally lost doing nothing more than twiddling our thumbs waiting, waiting, waiting. We are so impotent that we must now wait for the next election in Chile before we even know which way is up for us. It is pathetic that which we must wallow in here.
And next we must Wait hat-in-hand for LPI. Until White Knight LPI publishes the final undisputed NI43-101 and the JORC we (ie LIEG) are totally adrift and lost. Until LPI fully commits to us (LIEG) we are totally adrift and lost. Until LPI coughs up the second tranche $15.05M we are adrift and lost. Would you rather I simply harp on these axiomatic truths each day?... or instead write some occasional filler/color to take our minds off this never-ending quagmire we have been stuck in here for the last 5 years as we rue the day we did not bail out when this stock hit $.035 several months ago.
But alas, I regress. I shall step aside today if you wish, you are welcome to add your most profound and informative post today... I think we all would enjoy/cherish it. Or perhaps you could encourage someone else even more learned to pen some "precious informative stuff" and thus honor us LIEG mushrooms-in-the-dark with a tome of enlightenment today more suitable to your liking. Please be my guest dear comrade.
The Doctor