Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on BACANORA MINERALS LTD. We currently have 27 research reports from 4 professional analysts.
|20Dec16 07:00||RNS||Off-take Negotiations and Project Update|
|24Nov16 07:00||RNS||Board Changes and Corporate Update|
|23Nov16 07:00||RNS||Transfer of Shares|
|18Nov16 08:50||RNS||Q1 Results|
|11Nov16 07:00||RNS||Sonora Project Update|
|28Oct16 02:00||RNS||Directorate Change|
|27Oct16 07:00||RNS||Final Results|
Frequency of research reports
Research reports on
BACANORA MINERALS LTD
BACANORA MINERALS LTD
Off-take negotiations progressing
20 Dec 16
Bacanora has announced that it is now in advanced discussions with a “significant” Asia-based off-take group for the future supply of battery-grade lithium carbonate from its Sonora project in Mexico. This enhances our confidence that Bacanora will secure definitive off-take agreements ahead of completing Sonora’s feasibility study in summer 2017, a key de-risking event if it is to successfully secure construction funding for the $240m project. Expected completion of the study has slipped slightly (from previous guidance of late Q1 2017), but we do not envisage this delaying off-take negotiations, as potential partners are already in possession of sample product owing to the long-established pilot plant, which has been producing battery-grade lithium carbonate continuously for over six months now. Management has also flagged that the cost of input consumables is rising across the industry – cognizant of industry-wide cost inflation, we had already factored in to our numbers 25% cost inflation vs the prefeasibility study estimate, and therefore do not envisage altering our forecasts or valuation at this time. We still believe Sonora will comfortably fall in the lower half of the industry cost curve, and moreover note that lithium carbonate is currently trading at levels significantly higher than the $7,000/t long-term price assumption used in our valuation.
Small Cap Breakfast
20 Dec 16
Ultimate Products—The Telegraph reports Jim McCarthy, former chief of Poundland has been appointed Chairman of Ultimate Products ahead of a £100m listing in H1 2017. Ultimate Products owns the Beldray cleaning brand and the licence to sell Russell Hobbs and Salter electrical products in the UK.
Charging towards construction
29 Nov 16
Bacanora is advancing a feasibility study of the potential for producing up to 35kt pa of battery-grade lithium carbonate at low cost from its Sonora project in Mexico, one of the world’s largest lithium resources. With first production possible in CY2019, Bacanora is well positioned to service what we believe will remain a tight lithium market in which demand is expanding at over 10% annually driven by the fast-growing market for electric vehicles. But with gross opex of <$3,500/t potentially achievable (versus current battery-grade contract pricing of >$8,000/t), Sonora’s unique soft-rock resource should position it towards brine projects in the lower half of the cost curve, providing a margin of safety in the event the current producer oligopoly expands output and/or the plethora of proposed higher-cost hard-rock projects are built.
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
The Monthly January 2017
09 Jan 17
Despite all the hullaballoo of the Brexit vote and the subsequent election of Donald Trump as the next US President, the UK stock market prospered last year, especially in the latter few months of 2016. The combination of a depreciating currency – making $ earnings more valuable in relative terms - and the Trump emphasis on infrastructure expenditure drove the stock market higher
Small Cap Breakfast
17 Jan 17
Global Energy Development (GED.L) — To be renamed Nautilus Marine Services. Schedule 1 from developer and seller of hydrocarbons and related products. Reverse takeover. Raising $10.5m via a convertible. Expected 9 Feb. Eco (Atlantic) Oil & Gas—TSX-V listed oil and gas exploration has announced its intention to float on AIM. Assets in Guyana and Namibia. Proposed £2m-£3m fundraise. Diversified Gas & Oil—According to LSE website first day of trading on AIM now expected for 30 January.
Minor delay but lower cost and better visibility enhance the investment profile
13 Jan 17
First oil at Stella is delayed by about a month, reducing the contribution of Stella to FY17 production by the same period. While this has an impact on FY17e free cash flow, this is negligible to our valuation. More importantly, FY17 opex are estimated at only US$18/boe, below our estimates of US$20/boe. There are opportunities to reduce opex further. Harrier is expected to reach first oil in 2018, one year earlier than we expected and at a cost of US$40 mm lower than we anticipated. The overall development cost is less than US$6.0/boe. Ithaca holds numerous discoveries around Stella that would be developed with a similar cost structure to Harrier.