[On :freetrade:] Bacanora Lithium - BCN ⛏ 🔋

LSE - Ticker (BCN)

https://www.bacanoralithium.com/

Bacanora Lithium is an AIM listed company focused on generating shareholder value by identifying and investing in undeveloped lithium assets.

The Company is achieving this through its investments in two key projects, the Sonora and Zinnwald Lithium Projects in Mexico and Germany respectively.

To capitalise on the fast-growing lithium market, our main focus is to monetise the resources and reserves held in the Sonora Project, which benefits from a large, scalable and high-grade lithium resource with a Measured and Indicated Resource of over 5 million tonnes LCE. This will be initially achieved by developing phase 1 of the mine and processing plant. The Company aims to produce lithium carbonate for sale through offtake partners, with any additional production sold on the open market, in due course. The Company published the Sonora Feasibility Study (“SFS”) in January 2018 that showed a pre-tax NPV of US$1.25 billion, 26% IRR and an operating cost of around US$4,000 per tonne. Bacanora has 10 licences covering almost 100,000 hectares in Sonora, Mexico. Of these 10 licences, seven licences were covered by the SFS. The Company has been operating a Pilot Plant in Hermosillo, which has produced high quality battery-grade (>99.5%) lithium carbonate during ongoing test work conducted over the last four years.

The Company also holds a 50% investment in Deutsche Lithium, which owns the Zinnwald Lithium Project (covering 256.5 ha and with a 30 year mining licence to 31 December 2047), the Falkenhain licence (covering 295.7 ha and with a 5 year exploration licence to 31 December 2022) and the Altenburg licence (covering 4,225.3 ha and with a 5 year exploration licence to 15 February 2024). The Company published the Zinnwald Feasibility Study (“ZFS”) in June 2019, that showed a pre-tax NPV of €428m and IRR of 27%.

Quick snapshot of the company below

Company presentation video /
https://www.proactiveinvestors.co.uk/companies/news/305040/JulietMannUK

On the app now! :freetrade:

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Anyone have any thoughts or research to share on these? Interesting sector for sure!

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2020 should be interesting for BCN as that’s when production starts I think? Major shareholders include Ganfeng who have deals to supply lithium to the likes of Tesla / Vw / Bmw and many more I expect? Hopefully lithium price should pick up next year once electric vehicle sales take hold plus you have a lithium project in Canada that’s just been mothballed called Nemaska lithium which means that is 1 less supplier in the market. With lithium another player in electric vehicle batteries is Nickel. If you want to increase the range in your electric vehicle battery you need more Nickel in it, with Indonesia starting a Nickel export ban starting in 2020 the Nickel price should be fun to watch and my Nickel investment is with a company called Giga Metals on the TSX exchange. Similar to BCN and could be the world’s largest Nickel deposit in very early stages and probably a 5 year play but great entry price for going long.

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Thanks Viktor much appreciated :ok_hand:t2:

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Hello Codf just found this new article online about BCN -

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Two questions:
1 What is lithium used for?
2 Why is Bacanora good to have exposure to lithium? Are they a growing company?

Lithium is in batteries used in most EVs, phones, laptops etc . If you believe in electrification and storage of it, lithium is a key component.

As is copper, nickel, cobalt, aluminium etc!

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Agree with Codf I’ve attached this link https://www.proactiveinvestors.co.uk/companies/news/305040/JulietMannUK think it’s a presentation where it’s explained about the cost to produce lithium and BCN has one of the lowest in the field. The life of the Sonora mine I think is about 100 years or more ?

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Here’s another quick link about Ganfeng who are a major shareholder now in BCN https://www.bloomberg.com/news/articles/2018-10-09/how-the-world-s-biggest-ev-market-delivered-a-lithium-superpower . Hope you find this interesting :+1:t2:

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I have been in BCN, EMH and KDNC for 4 years and it has been an up and down ride.
All are in the the lithium market.
KDNC has been involved in both and still is ,long story.
They all sound good, BCN now seems to be taking the lead however funding seems to be main problems for all 3.
They are AIM shares so the ride could be even more bumpy, the rewards could be great however all have both risen and fallen quite quickly.

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Good item to invest in given what the above folks have mentioned, but as Reb pointed out it can be volatile. My “food for thought” is while Lithium is used in a very large range of electrical goods (Ion batteries) there is the upcoming possibility of Graphene replacing this once they perfect the tech. Might not be today or tomorrow but they are making advances with it and one day, it may replace Lithium Ion batteries. Think of the switch from VHS to DVD! (if you’re old enough on this thread to remember VHS! lol)

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Ultron the presentation I’ve watched about a different make up of battery materials is at least a decade away. Lithium is the play but I feel Nickel will be bigger as mentioned before Indonesia have a Nickel export ban starting Jan 2020 lasting 2 years so watch closely the price of Nickel next year? and to increase battery range you need to add more Nickel which is why I’ve invested in GIGA metals, go on YouTube and type in GIGA metals to watch some presentations. But BCN is my only lithium stock and agree it’s very volatile and i thought the share price would be higher by now?
But happy to continue to add over coming months or years here and it’s great Freetrade have added this now as easier to build a holding when only paying £1 trade fee rather than £11.95 etc. Best of luck :+1:t2:

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Nice article about the coming lithium demand and Mexico. BCN also gets a mention.

Must admit that on the face of it Bacanora looks a really good prospect. :+1:

[Picture expands]

Looks like the mine will outlive the Lithium-ion tech though…

Battery prices are falling, but that should only serve to increase demand:

Lots more hype about the project in the last 7 days:

https://www.dossierpolitico.com/vercolumnas.php?artid=228053&relacion=dossierpolitico&categoria=

Bloombergs take on the EU finally waking up to the electric / plug in hybrid / battery car: :electric_plug:

https://www.bloomberg.com/amp/news/articles/2019-12-09/germany-edges-out-norway-as-europe-s-biggest-electric-car-market?

EU subsidies anyone? :eu: :euro:

:cn: Ganfeng on board

https://www.google.com/amp/s/www.proactiveinvestors.co.uk/companies/amp/news/216967

The same Ganfeng that have agreements with Volkswagen:

And BMW:

Obviously there’s still the Tesla entrant threat:

But look where the Berlin Gigafactory is being built…

Bacanora own 50% of Zinnwald with an option to take the remaining:

https://www.bacanoralithium.com/projects/zinnwald-lithium/

Lots of car makers around that project…

Thoughts? :thinking:

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Nemaska Lithium in Canada just gone bust.

image

So another competitor taken out, initially estimated to cost 1.1 billion, the company bumped up the total investment needed for the project to 1.5 billion in October.

With Ganfeng on board with Bacanora we won’t have that problem, and maybe they can cut the project costs?

Ganfeng who Bacanora have a partnership with now also have a partnership with Lithium America’s and look how that is progressing :grinning:

Ganfeng want to become number 1 in the world. :+1:t2:

This looks a great company. I’d throw albemarle into the list here. Dividend aristocrat and are not just in lithium. They’re one of my largest singular stock holdings

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Also you have Ford building the new electric Mustang in Mexico

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Yes albemarle also a great company, think i have exposure to that in one of my ETF’s ? But with Bacanora cant see the price gaining much ground until Germany finalised and Sonora project online? I would like the share price to stay below 50p during 2020 as will continue to add below this price. Holding long term id like to think the share price could be around £2.50 ish in 2021 ? Once production is underway and money starts to come in from sales.

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Add Tesla to the list of customers with VW & BMW who Ganfeng supply - https://www.bloomberg.com/news/articles/2018-10-11/here-s-where-telsa-s-supplier-says-the-lithium-market-is-heading

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