Really bad news for the higher cost Lithium producers, if it stays this low (or lowers further) for a while you’ll start to see them disappear.
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Good for consumers, maybe? Unless lower prices don’t translate for cheaper lithium-ion batteries for phones.
Wonder if this has anything to do with Albemarle’s movement to the upside in the past few days. They’re heavy in lithium but they’re in other stuff as well. I wonder does their size and them being a dividend aristocrat become somewhat of a “safe haven” that people are parking their money when it comes to the lithium stocks space. Let’s get buying up the smaller mines ALB!
BCN Bacanora Lithium are right at the bottom of the cost curve. ECP contract report is due late March for construction from Ganfeng and decision to buy remainder of Zinnwald will be made by the end of February. VSA Capital has a price target of 112p lowered from 114p. Bacanora’s supply is due to come into production as the current over supply of lithium is removed from the market and the price of lithium starts to rise. I believe that Bacanora has its timing just right. Lithium demand is expected to triple by 2025 and some believe it to be the next oil.
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Think Mexico’s President called it the next gold!
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There’s also an article that says it’s the next oil lol. Not quite sure myself that it’s the next oil but I do believe once pricing for EVs has come down that this will have upward momentum and demand will be high especially for the higher grade lithium used in EV cars. This link provides a lot of info if you haven’t already watched or didn’t make the conference in Dec 2019.
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Fossil fuel vehicle sales have continued to freefall in 2019, dropping 4.3M, some 4.7%, compared to 2018. In China 2019 EV market share reached 4.7% and 3.8% in Europe. Global #EV market share to climb to at least 3% in 2020.
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Translators at the ready!
It says they have a concession, and thus are the only one company with the rights to explore that one location
Edit: my understanding of the geography of the American continent is extremely limited, so careful reading what follows.
It seems to me this article references to a Mexican state called Sonora. I think it’s Mexico because the page address ends in .mx . I checked Google maps to confirm it and there is indeed a Sonora State in Mexico. It borders the US of A to the North.
This piece says Bacanora Minerals is the only company with a concession to explore lithium in Sonora. It seems to me this right is circunstancial in the sense they are the only ones to date but others may obtain the permissions in the future (this is not clearly stated as such, but that’s the spirit of the message). Apart from the location where Bacanora has exclusive rights, other locations are mentioned, and they emphasize no concession was given for those thus far.
Makes sense?
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About this link you posted:
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Mexico had the biggest lithium deposit in the world being developed in 2019
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Bacanora has concession rights on 10 areas with circa 100k hectares (a bit over 200k acres) in total
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Bacanora expects to extract 35k tonnes of lithium per annum in the mid term
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In 2018 Bacanora’s stock price dropped following fear of excessive supply of lithium in the market. The stock price started to climb after the company Mining Technology published a list of the 10 biggest lithium mines in the world, with Sonora being ranked in the first place. This was followed by approaches from several companies to enter Bacanora’s capital. Chinese company Ganfeng Lithium was selected, assuming a position of 22.5% of the Sonora Lithium project. Both companies expect to invest 420M dollars in the mine’s first phase.
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Sonora’s deposit is one of the biggest in the world. It’s abundant, high grade and scalable.
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Although the concessions have been given, the government is reviewing the process, which led to some confusion.
Hope this helps
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Still a long time to be a real thing
But they want to develop applications to replace phone batteries, thus making them obsolete
Looks like they’re not buying the other half of Zinnwald after all.
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Bacanora, Lloyds and Glencore selling as soon as they go green if ever 
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Oh really? What’s made you change your mind?
They are my worst preforming 
want to try build bigger positions in ETFs cut down on so many mining stocks I’m a bit over exposed but they are all doing well bar this one. I dont want to sell at a loss I learnt that lesson with evr bought high and sold low to cut losses only to watch it rise up again it was my first trade I’ve learnt a lot since then though!
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Construction phase for Bacanora at Sonora Project. Wouldn’t expect any lithium to be extracted until 2023. Looks like CV has knocked Ganfeng about 6 months behind schedule.
Secker says the engineering work on Sonora is going well and they’re looking to finalise the whole package in the next three months which will then lead to a project development decision by the end of this first half and then project development in the second half of 2020.
Hit pretty hard by the CV outbreak this far (Down around 25%). I’ve doubled down on this whilst it’s cheap anyone else making moves?
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Apparently I’m a sucker for a mining company. Eurasia, Greatland Gold, Bacanora and Jubilee Metals to name a few, all of which have been added to regularly over the last week (well except EUA obviously).
Not in huge numbers by any stretch, I’m still waiting on getting a job! But I’m patient and happy to keep topping and see what happens.
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Totally missed the full results RNS released on Monday.
Here it is in full:
Mon, 2nd Mar 2020 07:00
RNS Number : 5899E
Bacanora Lithium PLC
02 March 20202 March 2020
Bacanora Lithium plc (“Bacanora” or the “Company”)
Audited Annual Report and Financial Statements for the six month period ended 31 December 2019
Bacanora Lithium Plc, (AIM: BCN) the lithium development and exploration company, is pleased to provide its audited annual financial results for the six months ended 31 December 2019. Where applicable, the Company’s Annual Report will be posted to shareholders shortly and will be available electronically on the Company’s website.
Highlights - for the six months ended 31 December 2019 and subsequent events:
Corporate - significant progress made in securing funding package for flagship Sonora Lithium Project (“Sonora”) in Mexico
In October 2019, Bacanora concluded an Investment and Offtake Agreement with Ganfeng Lithium Co., Ltd. (“Ganfeng”), the world’s largest lithium metals producer in terms of production capacity and the world’s third largest lithium compounds producer. Having obtained the government approvals:
Ganfeng acquired 29.99% of Bacanora and 22.5% of Sonora Lithium Ltd (“SLL”), the holding company for the Sonora Lithium Project, for £14,400,091 and £7,563,649 respectively. Ganfeng retains pre-emption rights to maintain its shareholding of Bacanora.
Mr. Wang Xiaoshen, the Deputy Chairman of Ganfeng, was appointed to the Board of Bacanora.
A long-term offtake agreement was signed with Ganfeng for 50% of Stage 1 production at the Sonora Lithium Project and up to 75% during Stage 2 production, both at a market-based price per tonne.
Ganfeng initiated a review of the engineering design and capital costs of Stage 1 with a view to optimising capital costs and timetable to construction.
In November 2019, Bacanora raised £7,729,150 via a placing of ordinary shares with its longest-standing institutional shareholder, M&G Plc (“M&G”), increasing M&G’s strategic holding in Bacanora to 19.9%.
The Company retains its US$150 million conditional senior debt facility with RK Mine Finance, signed in July 2018, to finance the development of the Sonora Lithium Project. US$125 million remains to be drawn.
Sonora - work focused on ensuring project construction may commence after the financing package is completed
Work to complete the front-end engineering design (“FEED”) has continued throughout the period, with Ganfeng undertaking a review of the hydrometallurgical engineering.
Our brokers, Citigroup Global Markets (“Citi”) and Canaccord Genuity (“Canaccord”), continue to progress work to secure full development capital for Stage 1 construction.
Zinnwald Lithium Project, Germany (“Zinnwald”) - Bacanora completes deal securing the future of the Joint venture agreement
- On 14 February 2020, Bacanora and the administrators of SolarWorld AG (“Solarworld”) agreed to cancel Bacanora’s option to purchase the remaining 50% shareholding of Deutsche Lithium GmbH (“DL”), not currently held by the Company. The agreement also cancelled Solarworld’s option to buy back Bacanora’s existing stake which was contingent upon the Bacanora not exercising its option. Bacanora retains its right of first refusal to purchase the remaining 50% currently held by Solarworld. Under the agreement Bacanora will provide €1.35 million funding to DL over the next two years.
Peter Secker, CEO of Bacanora, commented:
"During the period under review, Bacanora continued to make strong progress towards our goal of becoming a leading supplier of high-value lithium products to fast-growing industries. As previously announced, the Company was delighted to conclude an investment and offtake agreement with the world’s largest lithium metals producer, Ganfeng Lithium Co, for our Sonora Lithium Project located in Mexico and we welcome Mr. Wang Xiaoshen, the deputy chairman of Ganfeng Lithium Co, to Bacanora’s board of directors. This strategic partnership is a major achievement for Bacanora and a significant milestone towards securing the full funding package for Sonora in 2020.
As anticipated, Ganfeng has quickly demonstrated its commitment to Sonora and initiated a review on the stage one engineering and design capital costs, with a view to optimising the associated costs and the timetable to construction. This work is taking place in tandem with the front-end engineering design work instigated by the Company which continued to advance throughout the period.
In addition to Ganfeng’s support, I was also pleased to announce further commitment from another one of our blue-chip shareholder’s, M&G Plc, who in November 2019, increased its shareholding in Bacanora to 19.9% via a placing of ordinary shares. In total Bacanora has secured in excess of $37 million in equity investment from Ganfeng and M&G during the period.
Post period end Bacanora has successfully reached agreement with the administrators of Solarwold to maintain the Company’s 50% ownership of the Zinnwald Lithium Project, a strategic asset located in close proximity to a thriving market for lithium and energy products in Germany, with a right of first refusal to purchase the remaining 50%.
I look forward to updating the market this coming year as we look to enter the 24-month construction phase at Sonora, once the final finance structure, subject to market conditions and of course the recent outbreak of coronavirus, is concluded, in conjunction with our cornerstone investors and partners, Ganfeng, M&G, RK Mine Finance and Hanwa. We remain fully committed to our two high-quality lithium projects and look forward to all our shareholders and stakeholders reaping the rewards in the years to come as both projects in turn, generate significant returns."
For me it’s big red flag when they give 30% of the company to Ganfeng for just 14mil pounds but they have to raise about 400mil in total to finish Sonora. I might be wrong but it seems to me that they don’t have many cards left.