The VSA Aquis Showcase Event 2023
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Pressure Technologies (PRES LN) a UK-based precision engineering company, produces high pressure steel cylinders through its Chesterfield Special Cylinders (CSC) division, and its Precision Machined Components (PMC) division provides specialised machining services. PRES announced today that it has reached agreement in principle with Harwood Capital LLP, as Investment Adviser to Rockwood Strategic plc (who hold a 20.0% shareholding in the Company) and Peter Gyllenhammar AB (a 16.8% shareholder) for the provision of a new £1.5m, 5-year, Term Loan Facility. The proposed facility will be used to repay its £0.9m Lloyds bank facility, transaction expenses and provide working capital. PRES has also announced that it plans to divest the PMC division - this to fund growth in CSC’s defence and hydrogen businesses. Our FY 2024 P&L estimates are unchanged, end cash estimate increased from £0.9m to £1.5m and end net cash from £0.0m to £0.5m.
Pressure Technologies plc
American Lithium (LI CN) has provided an update on the TLC claystone project in Nevada, USA. Ongoing testwork has demonstrated improved lithium purity, and a reduction in leach temperatures and acid consumption while maintaining recoveries, which has positive implications for future economics. The recently published PEA demonstrated an NPV8 of US$3.26bn with unit costs of US$7,443/t, (excluding the magnesium sulphate by-product potential) and LoM average production of 38ktpa from the 11mnt LCE resource and the company indicated that optimisation of the flowsheet would be a continuous process. This announcement demonstrates positive progress with respect to this. Sierra Madre Gold and Silver (SM CN) has provided an update on progress at La Guitarra, its wholly-owned near production silver and gold mine acquired earlier this year. The update is in line with our expectations with an updated resource estimate due by year end followed by a mine restart plan including a cost study and mine plan. Currently, the company has indicated that a timeline of 20-22 months is realistic for first production.
American Lithium Corp. Sierra Madre Gold & Silver Ltd.
Quadrise (QED LN) has provided an update on the Valkor heavy oil project in Utah where the company has a Commercial Development Agreement to deploy QED’s technology to produce its fuel emulsion products from Valkor’s heavy oil production. Based on Valkor’s recent permitting progress the two companies have now agreed that the Licence Agreement between them is now conditional only on project financing of at least US$15m.
Sierra Madre Gold & Silver Ltd (SM CN) has completed the acquisition of the La Guitarra mine taking the company from silver explorer to near-term producer. Our site visit to the fully permitted operation demonstrated that the plant (520tpd nameplate) is indeed in good condition and a swift restart is possible. The management team is in an unusual position with Executive Chairman, Greg Liller, having operated the asset previously. His knowledge being passed onto the team is helping the reinterpretation of historic data to inform a drill programme for an updated mine plan and PEA over the next 24 months, during which time mill upgrades and additional equipment will be acquired. It is unlikely that the mill restart and refurbishment would take this long, in our view. However, we see the value in delivering a new mine pan underpinned by new drilling to give investor’s confidence; particularly in confirming the potential for zones of bulk mining an approach not adopted by the vendors, First Majestic (FR CN).
Sierra Madre Gold & Silver Ltd.