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Cadence Minerals #KDNC – Bacanora Lithium #BCN says an additional exploration licence has been granted for Zinnwald lithium project

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note the announcement yesterday by Bacanora Lithium (AIM:BCN) (“Bacanora”) that its 50%-owned subsidiary, Deutsche Lithium GmbH, (‘Deutsche Lithium’), has been granted an additional Exploration Licence (‘the Altenberg Licence’) covering approximately 42km² in the Erzgebirge (Ore Mountain) region of Saxony, Germany. The Altenberg Licence, which completely encloses Deutsche Lithium’s existing Zinnwald Lithium Project (‘Zinnwald’), has the potential to significantly increase the life of mine at Zinnwald.

The Altenberg Licence forms part of the same geological unit that hosts the historic Li-Sn-W deposits at Zinnwald and Falkenhain, where Deutsche Lithium has existing mining and exploration licences.  The deposits on the Altenberg Licence have been explored and mined historically for tin, tungsten and lithium. Historical exploration data indicates additional exploration targets are present within the Altenberg Licence that could host lithium, tin and tungsten mineralisation.

Deutsche Lithium plans to investigate the deposits on the Altenberg Licence over the next five years and to combine its exploration and development with its Zinnwald and Falkenhain licences. The 5-year Exploration Licence was issued to Deutsche Lithium by Sächsisches Oberbergamt, the Saxony State Mining Authority.

Bacanora believes this work has the potential to increase the resource base already delineated at Zinnwald, which currently comprises 142,240 tonnes of contained Li (NI43 101, Measured + Indicated + Inferred).  A Feasibility Study (‘FS’) focused on developing a strategy to produce higher value downstream lithium products from the Zinnwald concentrates for the European battery and automotive sectors remains on track for completion in Q2 2019. In tandem with the FS, the Company is in discussi

ons with financial advisors and potential strategic partners with regards to a potential spin-off and separate listing of Deutsche Lithium.  This is being considered to assist in the funding of the construction of a high value lithium operation at Zinnwald.

The full release can be found at: https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/BCN/14009146.html

Cadence Minerals CEO Kiran Morzaria commented: “To echo the words of Bacanora CEO Peter Secker – ‘lying on the same geological play as other mines in the area, the Altenberg Licence is an excellent addition to our existing Zinnwald lithium project.

“Cadence are also pleased to note Bacanora’s comments that with the FS at Zinnwald on course to be completed in Q2.’”

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

– Ends –

For further information:

For further information:

Cadence Minerals plc +44 (0) 207 440 0647
Andrew Suckling
Kiran Morzaria
WH Ireland Limited (NOMAD & Broker) +44 (0) 207 220 1666
James Joyce
James Sinclair-Ford
Hannam & Partners LLP (Joint Broker) +44 (0) 207 907 8500
Neil Passmore
Giles Fitzpatrick
Novum Securities Limited (Joint Broker) +44 (0) 207 399 9400
Jon Belliss

Qualified Person

Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance) from CASS Business School.

Forward-Looking Statements:

Certain statements in this announcement are or may be deemed to be forward-looking statements. Forward-looking statements are identified by their use of terms and phrases such as ”believe” ”could” “should” ”envisage” ”estimate” ”intend” ”may” ”plan” ”will” or the negative of those variations or comparable expressions including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors’ current expectations and assumptions regarding the Company’s future growth results of operations performance future capital and other expenditures (including the amount. nature and sources of funding thereof) competitive advantages business prospects and opportunities. Such forward-looking statements reflect the Directors’ current beliefs and assumptions and are based on information currently available to the Directors.  Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions competition environmental and other regulatory changes actions by governmental authorities the availability of capital markets reliance on key personnel uninsured and underinsured losses and other factors many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. The Company cannot assure investors that actual results will be consistent with such forward-looking statements.

Oversold lithium could be about to rally – Mining.com

It’s been a decade of lows for commodities after posting 7 declines in 11 years, but we’ve seriously underestimated lithium. It’s back with a vengeance in 2019.

The commodities market endured yet another annus horribilis, with just four commodities—natural gas, uranium, cocoa and wheat—recording any uptick at all. Last year’s 12 percent slide by the Bloomberg Commodity Index–spurred by 20 percent-plus declines by industrial bellwethers like West Texas Intermediate crude, steel and platinum—came in the wake of two years of modest gains.

So far, there is no clear data or evidence that that the lithium demand narrative is about to slowdown, let alone reverse on the contrary, certain emerging trends in the industry suggest just the opposite

Viewed against that kind of backdrop, lithium’s 50 percent correction that snapped a multi-year winning streak appears less vicious. It’s important to remember that prior to the crash, lithium had enjoyed a meteoric rise with prices doubling since the beginning of 2016 and nearly quadrupling over the past decade. The fact that much of the rally coincided with a sharp rise in the value of the U.S. dollar makes it all the more remarkable.

Investing in the commodity market can be a roller-coaster ride; what with the incessant boom-and-bust cycles driven by the ebb and flow in infrastructural spending, production ramps/cutbacks and stockpiling/destocking supplies. And just like other financial markets, trader sentiment plays a big role in determining trajectories.

Unfortunately, it’s the latter scenario that took center-stage during last year’s lithium crash. A furor around anticipated new supply especially from China’s new hard-rock projects and Chilean brine mines got out whack and derailed the market.

 

Tsunami of Oversupply?

The situation was not helped by Wall Street punters sounding the alarm over the dangers of oversupply …

Shares of major lithium producers and explorers including Sociedad Quimica y Minera de Chile (NYSE:SQM), Albemarle Corp. (NYSE:ALB) and Orocobre Ltd (ASX:ORE) received a severe hammering in March after Morgan Stanley forecast that Chilean low cost brine producers could add as much as 200kt per year by 2025, while expansion of China’s and Australia’s hard-rock mines could pump in another half a million metric tonnes over the timeframe. That’s certainly a massive production ramp-up considering that global production in 2017 totaled just over 200kt.

In August, Macquarie Research provided the final straw after chiming in with a warning that the market was “sleepwalking into a tsunami of oversupply.”

The report put the final nail in the coffin of the decade-long lithium rally– Fastmarkets reckons that prices for battery-grade lithium carbonate in China, by far the world’s largest consumer of high-grade lithium carbonate, tumbled 50.31 percent last year to 75,000-83,000 ($10,885-12,046) yuan per tonne from 158,000-160,000 ($22,932-23,222) yuan per tonne the previous year, as demand waned.

But maybe the bear camp rushed their fences this time…

While it’s undeniable that the carnage managed to exceed even Morgan Stanley’s decidedly pessimistic outlook for global lithium prices to drop 45 percent by 2021, the fundamentals suggest that the selloff was greatly overdone and such low prices cannot be justified by simple market forces of supply and demand.

According to London-based Benchmark Minerals Intelligence senior analyst Andrew Miller, the disconnect between lithium prices and the demand side of the equation has never been bigger.

Reality check

A cross-section of materials experts have raised eyebrows at the negative assessment, criticizing the investment analysts for underestimating the rise in lithium demand and the complex nature of lithium mining and production ramps. According to them, both MS and Macquarie failed to account for just how big the gap between supply forecast and actual production can be.

And, they might be spot on.

Supply expansions in 2018 came in much lower than predicted and the tsunami of oversupply forecast by the likes of Macquarie Research proved to be little more than changing tides in the lithium supply chain.

A good case in point is Brisbane-based Orocobre, which has become the poster child for just how challenging new brine mining can be. The company’s Salar de Olaroz project in Argentina took seven years to hit its stride but still came up short of production targets. Meanwhile, run-ins with the courts and regulators coupled with mutual accusations of license violations facing Chile’s lithium giants SQM and Albemarle at their Atacama brine projects further reinforce this point.

The screenshot below from Orocobre’s investor slide presentation is a sobering reminder to this reality.

In terms of feedstock supply, SQM and Albemarle had laid out plans for increased production rates. But as is often the case with brine evaporation, the process has been hindered by seemingly endless production delays. SQM hit technical obstacles at its new brine conversion facilities that delayed its target capacity of 70,000 tpa LCE by end of 2018 while Albemarle continues to struggle to achieve full capacity at La Negra II.

The situation has not been much better in China—the ultimate lynchpin to the lithium bear thesis. Many Chinese brine producers in the Qinghai region had outlined plans to triple or quadruple capacities over the coming 3-4 years. A visit by Benchmark Minerals to these operations, however, has painted a dire picture—the technical challenges related to high magnesium concentrations in the region are nowhere near being comprehensively overcome. Across Qinghai’s 10 producers, only an additional 5,000-10,000 tonnes of lithium product found its way to the market, majority of which failed to reach technical grade specifications. This, in effect, means that much of what came online from the region was either reprocessed thus adding to costs or converted to lithium hydroxide in a bid to meet growing demand for nickel-rich cathode technologies.

Although tight credit in China forced some lithium buyers to destock and contributed to the glut, the predicted huge oversupply failed to materialize. Around mid-September, analysts at CRU estimated lithium surplus for 2018 at a relatively mild 22,000 tonnes against a demand of 277,000 tonnes.’

2019: A transition year

So far, there is no clear data or evidence that that the lithium demand narrative is about to slowdown, let alone reverse. On the contrary, certain emerging trends in the industry suggest just the opposite.

The biggest near-term driver for lithium demand is the NCM trend. The shift towards cathodes that use huge amounts of lithium hydroxide is already underway, something that is expected to trigger a huge NCM (nickel-cobalt-manganese) ramp up. Benchmark Minerals estimates that 44 percent of mega-and-giga-factories will use lithium as a raw material by 2028 translating into 534,000 tonnes of additional demand.

That projection seems to resonate with Elon Musk’s ambitious target to build 20 gigafactories across the globe over the next decade. Miller sees 2019 as the tipping point where demand will eventually outstrip supply starting 2020.

Meanwhile, Roskill has predicted that the shift to higher-nickel-cathode materials will push many lithium producers to favor production of lithium hydroxide over lithium carbonate thus taking some pressure off the lithium carbonate supply side. The firm has forecast lithium demand to expand by a brisk 21 percent annual clip between 2018 and 2025 with demand expected to grow 13.5 percent in the current year.

But, of course, no lithium bull thesis would be complete without the EV angle.

Currently, the EV market accounts for about 47 percent of global lithium demand. That, however, is expected to drastically change as EV penetration rates coupled with the ongoing trend of electric vehicles using larger battery packs that yield longer ranges leading to electric mobility gobbling up 83 percent of lithium supply a by 2027.

Fastmarkets has predicted EV penetration to hit 15 percent by 2025 from 2 percent currently. EV demand has actually been beating estimates and is constantly being revised upwards to reflect this. The EV explosion is expected to drive a nearly six-fold increase in lithium demand for the forecast period.

 

Key lithium trends to watch in 2019 and beyond

  • Lithium carbonate prices will steady in 2019 before picking up steam starting 2020
  • Lithium hydroxide prices could soften a little bit after remaining resilient in 2018
  • China will become less important as a global price trend driver as demand rapidly builds up in other key markets

Miller advises investors to keep an eye on new spodumene production, particularly how quickly it can be integrated into the chemical and converter supply chain and turned into either lithium carbonate or hydroxide. A slower ramp is likely to lead to supply constraints and raise prices and vice-versa.

New lithium hydroxide factory in Western Australia wins federal approval – Via the Guardian

Plant set to boost local jobs and supply growing global demand for lithium, which is used in renewable energy storage

Earthworks for a new lithium hydroxide factory in Western Australia are expected to begin this month after the $1bn project received federal environmental approval.

The plant owned by the world’s largest lithium producer, the US chemical company Albemarle, was approved by the WA government in October and is estimated to create up to 500 jobs in construction, with another 100 to 500 operational jobs once it is operational.

Australia’s trade minister, Simon Birmingham, said the plant would provide a much-needed local jobs boost and supply a growing global demand for lithium, which is used in renewable energy storage.

“This is a welcome investment and vote of confidence in our local lithium industry that will help attract further investment into the future,” Birmingham said.

Albemarle announced on Thursday that earthworks at the site at Kemerton Strategic Industrial Estate, just north of Bunbury, were on track to begin soon.

“Achieving this milestone underscores our commitment and confidence in developing LiOH [lithium hydroxide] operations and in our overall strategy to drive significant shareholder value and meet our customers’ demands,” said Eric Norris, the president of Albemarle’s lithium division.

The plant will process spodumene ore from the Greenbushes lithium mine, about 90km south of the industrial estate, and produce 60,000 tonnes of lithium hydroxide annually with capacity to expand to 100,000 tonnes.

It will also produce a byproduct of up to 200,000 tonnes of sodium sulfate, and a million tonnes of tailings per annum.

The company has been ordered to identify a new breeding and foraging habitat for WA’s three threatened black cockatoo species – Carnaby’s cockatoo, Forest red-tailed cockatoo, and Baudin’s black cockatoo – to offset habitat lost by clearing the 89ha plant site, including 54ha of coastal plain vegetation that is home to a number of threatened native orchids.

The director of the Conservation Council of Western Australia, Piers Verstegen, said the environmental impacts of the project were “manageable”.

“We think on the whole it’s a positive development for the south-west and one that could provide an alternative source of employment to the coal-based jobs in Collie,” Verstegen said.

Collie, about 70km east of Bunbury, is home to four of WA’s five coal-fired power stations, fed by two open-cut coalmines.

The Albemarle plan will run on gas, but Verstegen said he hoped the company would look into running it on renewable power.

WA is the world’s largest producer of lithium, and the plant at Kemerton is the second significant lithium hydroxide manufacturing plant approved in the state since 2016.

The state established a task force aimed at promoting the lithium industry last year, and the premier, Mark McGowan, met with the directors of Albemarle on a trip to Washington DC in February.

By the Guardian

Telegraph – Lithium rush: electric car boom drives race for rare metals

Bolivia’s salt plains are home to some of the richest reserves of lithium. CREDIT: IGNACIO PALACIOS /GETTY IMAGES CONTRIBUTOR

Article by the Telegraph

More than 11,000 feet up in the Andes mountains of southwest Bolivia lies Salar de Uyuni, a remote salt flat that is home to some of the world’s largest reserves of lithium.

Largely untapped, the seemingly endless expanse of bright white salt plains are on the verge of a frenzy of activity as a global scramble erupts to extract the metal and secure supplies for lithium-ion batteries – a basic building material for the electric vehicle industry.

Last month, Germany struck a deal with Bolivia under which YLB, a state-owned chemicals firm, will work alongside German industrial company ACI Systems to produce 40,000 tons of lithium per year in Salar de Uyuni once operations begin in 2022.

With the International Energy Agency predicting the number of electric vehicles on the road globally to hit 125m by 2030, the rush for lithium and other battery metals like cobalt is attracting players old and new. Established player Albemarle is bringing new lithium mines online in Western Australia, while Erik Prince, the founder of US private military contractor Blackwater, has plans to launch a $500m (£392m) fund focused on battery metals.

But valuing resources like lithium, which suddenly grab the attention of global investors, is never easy. Prices have proved extraordinarily volatile, plunging 29pc last year from $158 to $111 per kilogram and prompting many to ask: has the lithium bubble already burst?

Brian Menell, chief executive of mining specialist TechMet, says it remains a sound long-term bet.

“Last year there was a degree of over exuberance in some of these markets including lithium and cobalt that resulted in a bit of speculative hype, and the price ran further than the short term fundamentals justified,” he says.

Either way, Menell, who has worked in the mining industry for 25 years, thinks the price correction has been overdone. Since founding TechMet in 2017, he has made battery and technology metals such as lithium, cobalt and nickel his sole focus. They will be “the key ingredients of the tech revolution”, he says.

Lithium brine manufacturing in Chile

He claims the industry is at a nascent stage but demand for a consistent flow of battery metals in future is inevitable. Demand is set to climb as the car industry and governments globally take action to curb emissions to tackle climate change and poor air quality.

Adding an extra geopolitical twist has been China, which has worked doggedly over the past 15 years to secure control over the best resources and the processing of battery metals “while everybody else was sleeping”, according to Menell.

The need for Western nations to secure a central role has grown more urgent, he says.

“The drive to counter or balance China’s control is one that is in the minds of government agencies in the US and Japan and to an extent in Europe.”

 Dr Benjamin Jones, managing consultant at CRU Group says: “Lithium demand is set to double between 2017 and 2023, driven predominantly by growth in EV production and sales. Demand for battery-grade lithium is forecast to triple over this period.”

By comparison, demand for a metal like copper is expected to increase 2-3pc per year.

Despite the difficulty extracting lithium from locations such as the Bolivian salt plateau, where heavy rainfall can cause flooding, Menell’s predicts strong demand.

“There will be a massive dislocation over the next five, 10 and 15 years between the demand for these metals and the supply  which will result in [them] outperforming other commodities by many multiples over that time horizon,” he says.

Electric vehicle manufacturers like Tesla rely on lithium as a key resource.

Lithium comes from two chief sources: either the mining of a hard rock called spodumene found in places such as Western Australia, or as brine that forms beneath the high altitude salt flats of Chile, Argentina and Bolivia – a trio of countries collectively known as the lithium triangle.

Though downward pressure on price is likely to endure for a few years as the market enters a phase of “oversupply”, the metal remains in a favourable position, Jones added.

TechMet is looking at hard-rock lithium projects in Africa, rather than brine-based ones such as those in South America.

With a current glut of supply, lithium-based batteries look to be the mainstay for the future of the electric vehicle industry. However, not everyone is convinced.

Earlier this week, a lawsuit was filed against Elon Musk’s car company Tesla after the death of an 18-year-old passenger in Florida last year was alleged to have been the result of a defective battery, calling into question the safety of lithium-ion technology, which is highly flammable.

New technologies are being experimented with too. Flow batteries, which use a metal called vanadium, have emerged as a contender with significant backing from China. Solid state batteries, another alternative, carry reduced risk and have been of particular interest to Sir James Dyson, who is building his own electric vehicle fleet.

However, Menell predicts flow batteries being directed more towards grid storage, and attempts to bring new technology to the transportation industry could prove to be very expensive.

“In my view, in the next 10-15 years lithium ion batteries will in roughly their present configuration and chemistry dominate for electric vehicles,” he says.

“At the moment, it’s probably $30, $40bn going into lithium-ion battery manufacturing capacity in China and elsewhere in the world and every car company in the world has a program for their fleet to be dominated by li-ion battery driven vehicles.”

And with China keen to clean up its air pollution, output and focus on battery metals and technologies will be greater than ever from the Far East.

“Although policy targets have been reined in, Chinese regulators still require rapid improvements in the energy density of EV batteries. This will significantly impact the competitive landscape for different battery technologies in the years ahead,” says Jones.

Lithium and other battery metals may struggle on price in the short-term, but over the mid to long-term, one thing is clear: the world will eventually need a lot of lithium.

VW and Ford forge partnership to spur low-carbon transport transition via edie.net

The rapid emergence of electric vehicles (EVs) and related autonomous driving technologies and mobility services is disrupting the global auto industry in ways that would have been unthinkable just five years ago.

Carmakers Ford and Volkswagen (VW) have forged a new low-carbon road transport partnership, which will see them work together to develop electric vehicles (EVs) and other clean technologies.

Unveiled on Tuesday (15 January), the collaborative agreement will initially see the two firms jointly develop a range of commercial vans and medium-sized pickup trucks, which will be launched across all of Ford and VW’s global markets in 2022.

Ford estimates that by collaborating on the development, manufacture and launch of these vehicles, the two companies will collectively save $500m (£387m) per year, starting in 2023.

Looking to the long-term, the agreement signed by Ford and VW also includes a memorandum of understanding (MoU) that the two companies will “investigate collaboration on autonomous vehicles, mobility services and further EVs”. The carmakers have both started to explore opportunities in these three fields on a standalone basis.

“Over time, this alliance will help both companies create value and meet the needs of our customers and society,” Ford’s chief executive Jim Hackett said.

“It will not only drive significant efficiencies and help both companies improve their fitness, but also gives us the opportunity to collaborate on shaping the next era of mobility.”

VW’s chief executive Herbert Diess echoed these sentiments, adding that the partnership would enable both companies to “harness [their] collective resources, innovation capabilities and complementary market positions to even better serve millions of customers around the world”.

Both VW and Ford have stressed that the alliance will not involve any “cross-ownership” of product lines in the future. Funding made jointly will instead be funnelled into infrastructure and efficiency projects.

Charging ahead

The announcement is the latest in a string of EV-related success stories for VW Group, which last week launched a new company focusing on EV charging solutions and renewable energy offerings.

Called the Elli Group, the new venture will be headquartered in Berlin and will develop and deliver products that assist the emergence and growth of the EV market, such as energy storage devices, charging points and ‘smart’ energy management systems.

VW has additionally confirmed this month that it will invest $800m in the expansion of its manufacturing plant in Chattanooga, Tennessee, to install EV production lines at the facility.

The first EVs to be made at the plant will be ID CROZZ SUVs, which are fully-electric and will be launched in 2022. The model is one of 20 fully-electric vehicles which VW has committed to launching by 2030 as part of its EV strategy.

Ford, meanwhile, has pledged to bring 16 new fully-electric and 24 hybrid models to market by 2025 as part of its $11bn low-carbon transport plan. Launched in 2017, the first move detailed in the plan is for Ford to bring a fully-electric SUV to market in 2020.

Volvo EV technology investment

The news also comes as the venture capital arm of Volvo Group announced it has invested an undisclosed sum in Momentum Dynamics, a start-up focused on the wireless charging for EVs.

The Philadelphia-based company specialises in developing and commercialising high power inductive charging for the automotive and transportation industries.

“Momentum Dynamics’ technology and competence within inductive bi-directional transmission of electrical energy and information safely through air, water and ice will fit the harsh conditions under which our customers operate,” said Per Adamsson, Vice President at Volvo Group Venture Capital. “High capacity charging up to 300kW for trucks, buses, construction equipment, industrial and marine applications will support the electrified transition.”

Financial details of the investment were not disclosed, although Volvo said “the transaction has no significant impact on the Volvo Group’s earnings or financial position”.

Advocates of wireless charging argue that it could streamline charging for EVs, making it easier for drivers to top up batteries opportunistically through car parks or even roads that feature embedded wireless charging systems.

 Stefan Söderling, investment director at Volvo Group Venture Capital, said the deal provided further evidence of the company’s commitment to green technologies, as well as its growing interest in co-operating with other firms working in the EV sphere.

“For Volvo Group we are strengthening our competence and knowledge of charging and electricity distribution within the ecosystem around electric transportation and energy supply,” he said. “We see partnership, cooperation and investments as the way forward in a fast-changing environment.”

Brand CEO Alan Green talks Bacanora Lithium #BCN, Powerhouse Energy #PHE, Bluefield Solar Fund #BSIF & SciSys #SSY with Justin Waite on Vox Markets podcast.

Alan Green CEO of Brand Communications discusses Bacanora Lithium (BCN), Powerhouse Energy (PHE), Bluefield Solar Income Fund (BSIF) & Scisys (SSY) with Justin Waite on the Vox Markets podcast. The interview is 19 minutes 7 seconds in.

Cadence Minerals #KDNC – Bacanora Lithium #BCN announces NI-43-101 lithium resource estimate at Zinnwald Project, Germany.

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note the announcement today by Bacanora Lithium (AIM:BCN) of NI 43-101 compliant Measured + Indicated resources of 124,974 tonnes of contained lithium (‘Li’) at its 50% owned Zinnwald lithium project (‘Zinnwald’ or ‘the Project’) in southern Saxony, Germany, representing a 30% increase from the previous PERC resource estimate of 96,200 tonnes.  The total resource estimate for the Project (Measure + Indicated + Inferred) is 142,240 tonnes of contained Li. The mineral resource estimate forms part of the Feasibility Study (‘FS’) for a high value lithium product operation at Zinnwald that will supply the fast-growing European battery and automotive sectors.  The FS remains on course to be completed in Q2 2019.

Highlights:

  • The Bacanora Zinnwald project is located in at Zinnwald SE Germany, some 35 km from Dresden and adjacent to the border of the Czech Republic and within 5 km of the town of Altenberg and 50 km of the town of Freiberg. 
  • The Project is in a granite hosted Sn/W/Li belt that has been mined historically for tin, tungsten and lithium at different times over the past 300 years.
  • The strategic location of the Project allows immediate access to the German automotive and downstream lithium chemical industries.
  • This new NI 43-101 mineral resource estimate upgrades the PERC compliant report produced in 2014, and is based on 76 surface holes plus 12 underground holes completed in 2017.
  • The upgraded resource is part of an ongoing FS at Zinnwald.  To date, concentrator and roasting testwork and resource definition workstreams have been completed. The remaining FS workstreams, including mine design, hydrometallurgical testwork and engineering design, are all underway and proceeding on schedule.  As a result, the FS is on course to be completed in Q2 2019.
  • The upgraded resource has been reported in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) and was carried out by G.E.O.S. Ingenieurgesellschaft mbH (G.E.O.S).

Bacanora is a lithium exploration and development company. As at the 31 August 2018 Cadence held  7.5% of Bacanora’s equity and 30% of Mexalit and Megalit joint venture companies. Mexalit is the owner of the El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 mineral concessions, which forms part of the 20-year mine plan of the Sonora Lithium Project in Northern Mexico.

The full release can be found at: https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/BCN/13820883.html

As at the 31 August 2018 Cadence had the following key investments: 19.7% of the equity in European Metal Holdings, which, through its wholly owned Subsidiary, Geomet s.r.o., controls the mineral exploration licenses awarded by the Czech State over Cinovec; 7.5% of the equity in Bacanora Lithium Plc and 30% of Mexalit and Megalit joint venture companies. Mexalit is the owner of the El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 mineral concessions, which forms part of the 20-year mine plan of the Sonora Lithium Project in Northern Mexico; 6.6% of Auroch Minerals Ltd; 4.5% of Clancy Exploration Ltd; 12.1% of Macarthur Minerals Ltd; 4% of the San Luis lithium exploration project in Argentina; 30% free carried interest in one mining lease and six exploration license in part of the the Yangibana Rare Earth Mineral deposit and a 100% interest in and exploration license on the eastern boundary of boundaries of Greenland Minerals and Energy Limited’s licences that encompass the world-class Kvanefjeld, Sørenson, Zone 3 and Steenstrupfjeld Rare Earth Element deposits.

– Ends –

For further information:

For further information:

Cadence Minerals plc

+44 (0) 207 440 0647

Andrew Suckling

Kiran Morzaria

WH Ireland Limited (NOMAD & Broker)

+44 (0) 207 220 1666

James Joyce

James Sinclair-Ford

Hannam & Partners LLP (Joint Broker)

+44 (0) 207 907 8500

Neil Passmore

Giles Fitzpatrick

Novum Securities Limited (Joint Broker)

+44 (0) 207 399 9400

Jon Belliss

 

Qualified Person

Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance) from CASS Business School. 

About Cadence Minerals:

Cadence is dedicated to smart investments for a greener world. The planet needs rechargeable batteries on a global scale – upcoming supersized passenger vehicles, lorries and buses – require lithium and other technology minerals to power their cells. Cadence is helping find these minerals in new places and extracting them in new ways, which will meet the demand of this burgeoning market.

Cadence invests across the globe, principally in lithium mining projects. Its primary strategy is taking significant economic stakes in upstream exploration and development assets within strategic metals. We identify assets that have strategic cost advantages that are not replicable, with the aim of achieving lower quartile production costs. The combination of this approach and seeking value opportunities allows us to identify projects capable of achieving high rates of return.

The Cadence board has a blend of mining, commodity investing, fund management and deal structuring knowledge and experience, that is supported by access to key marketing, political and industry contacts. These resources are leveraged not only in our investment decisions but also in continuing support of our investments, whether it be increasing market awareness of an asset, or advising on product mix or path to production. Cadence Mineral’s goal is to assist management to rapidly develop the project up the value curve and deliver excellent returns on its investments.

Forward-Looking Statements:

Certain statements in this announcement are or may be deemed to be forward-looking statements. Forward-looking statements are identified by their use of terms and phrases such as ”believe” ”could” “should” ”envisage” ”estimate” ”intend” ”may” ”plan” ”will” or the negative of those variations or comparable expressions including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors’ current expectations and assumptions regarding the Company’s future growth results of operations performance future capital and other expenditures (including the amount. nature and sources of funding thereof) competitive advantages business prospects and opportunities. Such forward-looking statements reflect the Directors’ current beliefs and assumptions and are based on information currently available to the Directors.  Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions competition environmental and other regulatory changes actions by governmental authorities the availability of capital markets reliance on key personnel uninsured and underinsured losses and other factors many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. The Company cannot assure investors that actual results will be consistent with such forward-looking statements.

Stockhead – Next year will be huge for electric car launches as Europeans race to catch up – Cadence Minerals (KDNC)

Next year will mark the start of a huge EV ramp-up for the world’s biggest carmakers — and that’s expected to have a serious impact on  demand for key battery metals such as lithium, cobalt, manganese, HPA and nickel.

Euro car-makers have a lot of ground to make up on EV leaders Tesla, Nissan and Chinese manufacturers – who continue to break production and sales records every month.

Tesla sold an estimated 22,250 Model 3s in September in the US alone according to this report — the highest ever for sales of a single plug-in electric car in a month, and the first time an EV has beaten 20,000 sales a month in the US market.

French-owned PSA Group — which sells the Peugeot, Citreon, DS, Opel and Vauxhall brands —   is undergoing an self-described “electrification blitz” from next year, as it aims for 100 per cent EV core models by 2025.

This is a company that made net profit of about $2.4 billion on car sale revenues of $50 billion in the first half of 2018.

Its Peugeot and Citreon brands showed off fully EV and hybrid versions of its popular models — due for rollout next year — at the Paris Motor Show last week.

It also unveiled its beautiful, fully electric concept Peugeot e-Legend car.

In response to a change.org petition to get the e-Legend into production, Peugeot boss Jean-Phillipe Imparato says:

Germany’s Volkswagen Group estimates it will sell 3 million EVs in 2025.

Of that, its I.D. models – which starts production next year – are expected to contribute 1 million of those sales.

Audi, also part of the Volkswagen Group has started production of its e-tron EV ahead of full production in 2019; it’s expected to produce about 20,000 a year.

And the first Mercedes-Benz vehicle under the fully electric EQ brand will be launched by mid-2019 – part of a range that is expected to expand to include 10 new models by 2022.

Cadence Minerals #KDNC – Interim Results for the six months ended 30 June 2018

Cadence Minerals plc, (AIM/NEX: KDNC; OTC: REMMY), which invests in highly prospective lithium and rare earth mineral projects, announces its interim results for the six months ended 30 June 2018.

HIGHLIGHTS

·      Fundamental Supply of Lithium Compounds remains constrained

·      Long-term battery grade lithium pricing increased during the period and remains US$15,000 per tonne

·      European Metals Holdings (“EMH”) the owner of the Cinovec project in the Czech Republic;

·      Completed test work on roast improving lithium recoveries to 95%.

·      Announced a revised pre-feasibility study which will envisage the production of lithium hydroxide which is currently priced at around US$17,000 per tonne.

·      Reconnaissance exploration was completed at San Luis lithium project which has identified some 10 thousand hectares of prospective ground of lithium bearing pegmatites.

·      Subsequent to the year-end Macarthur entered into an exclusive advisory agreement with UK based Capstan Capital Partners LLP (“Capstan”) to seek the necessary funding required to advance Macarthur’s significant iron ore projects located in Western Australia.

STRATEGIC REVIEW

By most of the fundamental measures in supply and demand dynamics, whether it be constrained supply chains, strong product pricing or build out capacity for the product, the long-term outlook for lithium and lithium compounds remains strong.

Nonetheless, for 2018, there have been several analysts that have continued to suggest a wave of supply of lithium compounds and therefore a softening in lithium prices. Our research and “boots on the ground” approach tells a very different story.

The oversupply camp point to increasing capacity from China, Australia and the Atacama that will swamp the market. However, this fails to take account of two critical points. Firstly, the delivery of battery grade lithium compounds is not easy, even with the typical commissioning delays associated with mining projects, there is then the added aspect of a complex and capital-intensive hydrometallurgical plant, to get these commissioned and financed is difficult. Therefore, the reality is the supply will be delayed in our view, and only those projects with sufficient scale and competitive cost structure will be able to attract the financing to enter the supply chain.

Secondly, the additional capacity from Australia is, for the large majority, shipped as spodumene to China, where it is converted to lithium compounds. So, to understand supply, you need to understand the conversion capacity of China, which by all accounts are struggling to install new conversion plants in time and will probably be only able to produce 200,000 tonnes of lithium carbonate in 2019. Both of the above point to a constrained supply chain and not a wave of supply.

When we look at pricing over the period, several detractors will point to the drop in the price of Lithium compounds in China. The reality is that Chinese pricing was influenced in part by brine projects in China needing to sell below battery grade lithium carbonate to fund operations. To us, the most representative pricing of battery grade lithium carbonate is from South America where pricing continued to increase over the year and currently trades at around US$15,000 per tonne of battery grade lithium carbonate.

Despite all of these constraints in supply and the positive outlook on the demand side equities in the lithium market have softened considerably during the year with the Global X lithium ETF dropping by 19% over the six months to June 2018, with some lithium project developers dropping up to 65% over the same period.

Our investments were not immune to this softening, and our principle two investments in Bacanora Lithium and European Lithium reduced in price by 20% and 53% respectively. This, in turn, was reflected in our share price performance which reduced by 33% over the period and our absolute return figures which  were at the period ended 26% which is in line with the return figures on Global X Lithium ETF over the same period.

Table 1: Absolute Return Figures

30/06/2017

31/12/2017

30/06/2018

Book Value (GB£ ,000)

17,904

11,345

11,104

Mark to Market Equity Value (GB£ ,000)

30,882

24,869

14,005

Absolute Return on Equity (%)

72%

119%

26%

Global X Lithium & Battery Tech Returns (%)

13%

51%

27%

 

Despite the performance of our investments, the underlying projects remain sound and have the right cost structure and scale to potentially be significant contributors to the battery supply chain.

Of note was the progress that European Metals Holdings have made during the year. It has improved roast recoveries in their lab test work, and since the end of June 2018 they received approvals to carry out geotechnical drilling and announced that they would be carrying out a revised pre-feasibility study to produce lithium hydroxide which is scheduled to be published in the coming months. Given the pricing and demand for this compound, we would hope to see an improvement in the economics of the project.

Bacanora continued to make progress during the year at a project level, however, as a result of market volatility in the lithium markets, it decided not to proceed with the equity portion of its project financing. It is continuing the front-end engineering design of the project and has drawn down US$25 million of its US$150 million debt facility.

The board and its strategy have evolved significantly since 2014. Its focus since September last year is to invest in earlier stage exploration projects, as this is typically where the largest return is for relatively low levels of investment capital. The risk associated with investing in any resource projects at an early stage is high, therefore, and in order to mitigate this risk, our goal from the outset is to obtain a deep fundamental understanding of the resource, its chemistry and management team.

By doing so, we can eliminate the many of the potential investments that we review during the year and fund projects that we believe will deliver value to our shareholders. We look to fund projects via earning in, at solely our option, and if at all possible look to incentivise our joint venture partners via equity in Cadence against deliverables that will add value. Importantly we also take an active approach to our investments by being part of the management team and enshrining our minority shareholder protections in joint venture agreements.

During the six months, we have reviewed numerous projects, inclusive of brines in the Atacama, Cobalt in the USA, and pegmatites in multiple places in Africa, all of which had their attractions however they did not match our investment criteria so were rejected.

We continue to review possible investments and seek out new opportunities always with the ultimate aim of securing an asset that has the potential to add significant value to our share price.

The future remains very exciting for the Company. We will continue to review our investments in our investee companies, with regular meetings with management. Importantly we will continue to examine the market perception of lithium and if required ensure we limit our exposure to further downside in our equity positions. 

INVESTMENT REVIEW

Bacanora Lithium Plc (“Bacanora”)

At the period end Cadence owned 8.3% of Bacanora’s equity and a 30% stake in the Mexalit S.A. de CV (“Mexalit”) joint venture which forms part of the Sonora Lithium Project in Northern Mexico.

Bacanora has two lithium development assets, the Sonora Lithium Project and the Zinnwald Lithium Project. Bacanora has a 50% interest in, and joint operational control, of the Zinnwald Lithium Project. Zinnwald represents a strategic asset located near a thriving market for lithium and energy products.

Bacanora’s principal asset is the Sonora Lithium Project in northern Mexico. The asset has Measured plus Indicated Mineral Resource estimate of over 5 million tonnes (‘Mt’) (comprising 1.9 Mt of Measured Resources and 3.1Mt of Indicated Resources) of lithium carbonate equivalent (‘LCE’) and an additional Inferred Mineral Resource of 3.7 Mt of LCE, Sonora is regarded as one of the world’s larger known clay lithium deposits.

In January 2018 Bacanora published its Feasibility Study (“FS”) on the project. The FS targeted a two-stage open-pit operation, reaching 35,000 tonnes (t) of lithium carbonate (Li2CO3) per annum (“tpa”) in year four. The FS has a pre-tax NPV of US$1.25 billion and an IRR of 26%. The capital and working capital costs of the first stage of production (17,500 t of Li2CO3 per annum) is estimated to be US$460 million. Under our estimation, The FS mine plan currently has some 12% of the plant feed being mined from the 30% joint venture areas owned by Mexalit.

After the period end, Bacanora announced its financing strategy and were able to secure a US$150 million debt funding from RK Mine Finance. Additionally, Bacanora was able to secure conditional investments totalling US$90 million from the State General Reserve of Oman and Bacanora’s off-take partner, Hanwa Co., Ltd. These combined financing represented US$240 million of the US$460 million required. In July Bacanora elected not to proceed with a further US$100 equity placing, citing current volatility in global commodities markets.

Both our 8.3% equity stake in Bacanora and our ownership in the Mexalit joint venture could represent a substantial return for Cadence in the form of cash flow from the Sonora Lithium Project. Which we estimate could be as much  US$106 million (net present value, 10% discount) using a lithium carbonate price of 13,000 per tonne and a dilution of 3X of the current equity on issue in Bacanora. This is of course contingent on Bacanora securing the necessary financing and executing the development of the Sonora Lithium project as per the FS published in January this year.

European Metals Holdings Limited (“EMH”)

At the end of June 2018 and as a result of share issues by EMH Cadence held a 19.7% in EMH, through this equity holding we have an economic interest in the Cinovec lithium and tin deposit.

At an operational level, the Cinovec lithium project progressed well. However, this progress was overshadowed by Czech presidential elections and, in particular, the statement of the Czech Minister of Industry and Trade which purported to terminate the memorandum of understanding between EMH and Czech Ministry of Industry of Trade. As stated by EMH the termination of the MOU does not in any way affect the exploration rights of EMH tenure over its exploration permits.

Despite this, there were substantial strides made in the development of the Cinovec Lithium Project. Of note was the improvement in lithium recoveries announced in March, which was increased to 95%. In addition, EMH continued to work on the pilot scale beneficiation work, this work along with the improved lithium recoveries meant that subsequent to the period end EMH was able to report increased lithium production from 20,800 tpa to 22,500 tpa.

Moreover, EMH has commenced work on an update of the Preliminary Feasibility Study to model the production of higher value lithium hydroxide due to its increasing use in lithium-ion batteries. We expect the results from this to be announced in the coming months. 

San Luis Lithium Project

In December 2017 Cadence Minerals announced that it had executed binding investment agreements to acquire up to 100% of six prospective hard rock lithium assets in Argentina.

These transactions mark the start of the Company’s strategic shift to earn into early stage lithium assets in well-known lithium jurisdictions where we see the potential to deliver shareholder value by investing in projects that have shorter development timeline to cashflow than a typical lithium carbonate producer.

The San Luis Project Consist of claims over 55,773 hectares for six exploration permits within the known spodumene bearing pegmatite fields in San Luis Province, Central Argentina.

During the period under review the investee’s geology team, utilising a range of remote sensing and geographical information system (GIS) tools, have completed several desktop studies which identify highly prospective areas for lithium mineralisation in known spodumene bearing pegmatite bodies. Encouragingly, there are multiple indicators that confirm the presence of spodumene bearing pegmatite bodies including geological structural features, aero-magnetic radiometric data analysis, satellite imagery and differentiation in granitic bodies.

The net result is that out of the 55,773 hectares, comprising the six assets total area, the geology team have identified 10,049 hectares as high-priority areas for the next phase of the exploration programme

Finalised Environmental Impact Assessments have been submitted to the mining regulator for these high priority areas, with applications for drilling permits to follow

The project team are now in discussions with third-party suppliers, including drilling contractors, and intend to fast-track the next phase of exploration as soon as regulatory approval is secured.

On grant of the exploration permits Cadence will acquire up to 49% by spending £1.1m on exploration and drilling, and by issuing £0.4 million of new ordinary shares in Cadence to The Vendors. Cadence has an option to acquire up to 100% by issuing a further £1.75m of new ordinary shares in Cadence. During the period Cadence completed its initial £0.10 million investment for 4% of the exploration permit.

Auroch Minerals

At the end of the period Cadence had a 6.6% interest in Auroch Minerals, its focus over the period under review has been the development of the high-grade zinc, Bonaventura Project and the Arden zinc, copper-cobalt project. Drilling has commenced at both of these highly prospective projects, both of which are expected to take between six and eight weeks to complete.

The Bonaventura Project contains several historic artisanal mines for zinc, lead, copper, gold and silver that were worked at various times up to the 1920’s. Soil-sampling over the Bonaventura Project has been completed with zinc anomalism following the strike of the regional Cygnet-Snelling Fault.

The Vinco Target, which is situated 1,500m along strike from Grainger target, has previously been surveyed using high-resolution aeromagnetics, including induced polarisation (IP) and gravity surveys.

The IP survey interpretation over the Dewrang target identified two-highly chargeable anomalies at approximately 200m depth over a strike length of over 400m. Anomalies indicate the potential for the presence of high-grade base-metal sulphides, making Dewrang a high-priority area for exploration.

In addition to the base metal targets, the Kohinoor target remains highly prospective for gold mineralisation, with historic composite samples taken from the first level of the main historic workings.

The Arden project consists of a Sedex type potential deposit. The Sedex potential was initially discovered by Kennecott (Rio Tinto Group) between 1966 and 1972, identifying anomalous Sedex-style zinc mineralisation up to 40m wide and with a potential for over 10km of the strike. However, since 1980 the area has been the focus of regional diamond exploration, and as such the Sedex horizon at the Ragless Range Target had not been explored.

Auroch has moved quickly to realise the project potential, undertaking reconnaissance field mapping, rock-chip sampling,a reinterpretation of historical data and an Aeromagnetic survey before initiating its maiden drill programme in August 2018. Arden enjoys access to world-class infrastructure including the railway to Port Augusta, which passes just to the south of the tenement.

Macarthur Minerals (“Macarthur”)

Cadence at the end of the period had 12.1% equity interest in Macarthur, which is an Australian mining exploration company which has a diverse portfolio over multiple asset types, commodities and locations.

During the period its efforts have been focused on the early exploration of its gold, nickel and lithium projects in Western Australia.

However of most interest was the work that has been carried on its substantial Iron Ore Projects in the Yilgran Region of Australia, which have Mineral Resources comprised of Indicated Mineral Resources of approximately 54.5 Mt @ 47.2% Fe and approximately 26Mt @ 45.4% Fe Inferred resources.

Subsequent to the year-end Macarthur entered into an exclusive advisory agreement with UK based Capstan Capital Partners LLP (“Capstan”) to seek the necessary funding required to advance Macarthur’s significant iron ore projects located in Western Australia.

Macarthur has been reviewing its iron ore projects in light of the emergence of rail and port capacity through to the Port of Esperance and the cessation of mining at Cleveland-Cliffs Inc’s Asia Pacific Iron Ore projects and Mineral Resources Limited’s Carina project. 

Clancy Exploration (“Clancy”)

At the end of the period, Cadence held 4.5% interest in Clancy, which focused its efforts during the period in acquiring and developing 100% of key cobalt licenses adjacent to the Bou Azzer Cobalt mine in Morocco, which is famous for being a primary cobalt producer. Initial surface sampling has been carried out, and due diligence has been completed. The acquisition is in the process of completion, and we await further news in this regard.

Yangibana Rare Earth Project

Cadence owns a 30% free carried interest in the Yangibana North, Gossan, Hook, Kanes Gossan, Lions Ear and Bald Hill North rare earth projects (“Yangibana North Project”) in Western Australia. These projects form part of the larger Yangibana Rare Earth Project (“the Project”). The free carry is up to the commencement of the feasibility study.

Hastings Technology Metals Ltd (“Hastings”), which is the operator of the Project and the owner of the remaining 70% in the Yangibana North Project, made considerable progress during the year to date. This included securing funding for the initial long lead items for the project and securing an offtake of Memorandum of Understanding with Tyssenkrupp Raw Materials GmbH.

During the period we engaged with the management of Hastings, to discuss and review the reasoning why our joint venture areas are not included in the current mining plans. In conclusion, although mineral resources are substantial, using the currently envisaged beneficiation and hydrometallurgical process, the higher grade in the joint venture areas is offset by the higher processing costs associated with the ore. Therefore, Hastings envision that the ore will be included in the later stages of the mining plan, which is out of the scope of the feasibility study. In this regard, we view that our priority should be to look to extract value from the asset in the short to medium term.

FINANCIAL REVIEW

During the period, the Group made a loss before taxation of £4.60 million (30 June 2017: profit of £0.89 million; year ended 31 December 2017: profit £1.19 million). This was primarily due to a decrease in market price of our investments in Bacanora, following the overall trend in the market within lithium stocks.

There was a weighted basic loss per share of 0.058p (30 June 2017: profit per share 0.011p, 31 December 2016: profit per share 0.015p).  Foreign currency translation differences marginally increased comprehensive loss for the period to £4.66 million (30 June 2017: total comprehensive income of £0.84 million, 31 December 2016: total comprehensive expenditure of £1.88 million).

Administrative expenses decreased by £0.33 million compared to the same period last year; this decrease was driven by cost-cutting measures across the board inclusive of an average 30% reduction in directors salaries, which took effect in April this year. We continue to reduce costs and expect this downward trend in costs for the remainder of this financial year.

The total assets of the group decreased from £35.17 million at 31 December 2017 to £25.41 million. Of this amount, £9.95 million represent the market value of our available for sale investments at the period end. The reduction in the total assets is as a result of the decrease in the value of Bacanora equity, which was the primary driver for the decrease in available for sale asset value.

It is important to note that this does not include our investment in EMH. Our investment in EMH is classified as an investment in an associate and held at a value of £12.9 million. EMH is classified as such because we hold in excess of 19% and Kiran Morzaria, the Chief Executive Office of Cadence is also a Non-Executive Director of EMH.

Our borrowings of £4.18 million as at the 31 December 2017 reduced to £3.06 million by the end of the period as we paid back our convertible loans.

During the period, our net cash outflow from operating activities was £0.45 million compared to £1.46 million during the same period last year. The variance is attributable to the decreased administrative expenses as highlighted above. We invested a further £0.47 million in blue-chip liquid stocks in the lithium sector. We disposed of £0.44 million some of which included the aforementioned lithium stocks as well as some Bacanora equity, which taken together provided a £0.10 million realised profit on disposal. We also paid back some £1.12 million of our convertible loan during the period, which was the primary driver in reducing our cash position to £0.2 million.

 

 

For further information please contact

Cadence Minerals plc

+44 (0) 207 440 0647

Andrew Suckling

Kiran Morzaria

WH Ireland Limited (NOMAD & Broker)

+44 (0) 207 220 1666

James Joyce

James Sinclair-Ford

Hannam & Partners LLP (Joint Broker)

+44 (0) 207 907 8500

Neil Passmore

Giles Fitzpatrick

Novum Securities Limited (Joint Broker)

+44 (0) 207 399 9400

Jon Belliss

Forward-Looking Statements:

Certain statements in this announcement are or may be deemed to be forward-looking statements. Forward-looking statements are identified by their use of terms and phrases such as ”believe” ”could” “should” ”envisage” ”estimate” ”intend” ”may” ”plan” ”will” or the negative of those variations or comparable expressions including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors’ current expectations and assumptions regarding the Company’s future growth results of operations performance future capital and other expenditures (including the amount. nature and sources of funding thereof) competitive advantages business prospects and opportunities. Such forward-looking statements reflect the Directors’ current beliefs and assumptions and are based on information currently available to the Directors.  Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions competition environmental and other regulatory changes actions by governmental authorities the availability of capital markets reliance on key personnel uninsured and underinsured losses and other factors many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. The Company cannot assure investors that actual results will be consistent with such forward-looking statements.

CADENCE MINERALS PLC

STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD ENDED 30 JUNE 2018

 

Notes

Unaudited Period ended 30 June 2018

Unaudited Period ended 30 June 2017

Audited Year ended 31 December 2017

£’000

£’000

£’000

Income

Unrealised (loss)/profit on available for sale assets

(3,730)

2,331

1,353

Realised profit on available for sale assets

105

2

3,118

Other income

48

60

145

(3,577)

2,393

4,616

Share based payments

(3)

(2)

Impairment of intangible assets

(300)

Other administrative expenses

(785)

(1,123)

(1,800)

Total administrative expenses

(788)

(1,123)

(2,102)

Operating (loss)/profit

(4,365)

1,270

2,514

Share of associates losses

(182)

(103)

(339)

Finance cost

(59)

(272)

(986)

(Loss)/profit before taxation

(4,606)

895

1,189

 

 

 

Taxation

(Loss)/profit attributable to the equity holders of the Company

(4,606)

895

1,189

Other comprehensive (expenditure)/income

Foreign currency translation differences

(53)

(53)

686

Other comprehensive (expenditure)/income for the period net of tax

(53)

(53)

686

Total comprehensive income/(expenditure) for the period

(4,659)

842

1,875

(Loss)/Profit per share

Basic (pence per share)

3

(0.0587)

0.0115

0.0152

Diluted (pence per share)

3

(0.0506)

0.0095

0.0125

CADENCE MINERALS PLC

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED 30 JUNE 2018

 

Share capital

Share premium account (restated)

Share-based payment reserve

Hedging, Loan & Exchange reserves

Retained earnings

Total equity

£’000

£’000

£’000

£’000

£’000

£’000

Balance at 1 January 2017

1,192

27,145

4,410

(254)

(7,968)

24,525

Issue of share capital

2

157

159

Transfer on lapse of warrants

(396)

396

On settlement of loan notes

(33)

(33)

Transactions with owners

               2

             157

–         396

–              33

          396  

          126

Foreign exchange

 –

 –

553

 –

553

Profit for the period

895

895

Total comprehensive income for the period

              –  

                –  

              –  

553

895

1,448

Balance at 30 June 2017 (unaudited)

1,194

27,302

4,014

266

(6,677)

26,099

Issue of share capital

8

250

258

Share based payments

2

2

Transfer on lapse of warrants

(285)

285

Transfer on cancellation of options

(553)

553

On issue of loan notes

412

412

On settlement of loan notes

(474)

(474)

Transactions with owners

               8

             250

–         836

(62)

          838

          198

Foreign exchange

133

133

Profit for the period

294

294

Total comprehensive income for the period

              –  

                –  

              –  

133

294

427

Balance at 31 December 2017

1,202

27,552

3,178

337

(5,545)

26,724

Share based payments

3

3

Transfer on lapse of warrants

(132)

132

Transactions with owners

              –  

                –  

(129)

                –  

          132

               3

Foreign exchange

 –

 –

(53)

 –

(53)

On conversion of loan notes

 –

 –

 –

 –

Loss for the period

(4,606)

(4,606)

Total comprehensive loss for the period

              –  

                –  

              –  

(53)

(4,606)

(4,659)

Balance at 30 June 2018 (unaudited)

1,202

27,552

3,049

284

(10,019)

22,068

 

CADENCE MINERALS PLC

STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2018

 

Unaudited

Unaudited

Audited

 30 June 2018

 30 June 2017

31 December 2017

Assets

Notes

£’000

£’000

£’000

Non-current

Intangible assets

1,875

2,228

1,887

Tangible assets

Investment in associate

12,918

12,879

12,988

14,793

15,107

14,875

Current assets

Trade and other receivables

461

421

722

Available for sale asset

9,946

18,498

13,534

Cash and cash equivalents

216

2,125

2,037

Total current assets

10,623

21,044

16,293

Total assets

25,416

36,151

31,168

EQUITY AND LIABILITIES

Current liabilities

Trade and other payables

290

227

262

Borrowings

3,058

9,825

4,182

Total current liabilities and total liabilities

3,348

10,052

4,444

Equity

Share capital

4

1,202

1,194

1,202

Share premium

27,552

27,302

27,552

Share based payment reserve

3,049

4,014

3,178

Hedging & Exchange reserve

284

266

337

Retained earnings

(10,019)

(6,677)

(5,545)

Total equity and liabilities

to owners of the company

22,068

26,099

26,724

Total equity and liabilities

25,416

36,151

31,168

CADENCE MINERALS PLC

CONSOLIDATED CASH FLOW STATEMENT

FOR THE PERIOD 30 JUNE 2018

Unaudited Period ended

Unaudited Period ended

Audited Year ended

30 June 2018

30 June 2017

31 December 2017

£’000

£’000

£’000

Cash flows from operating activities

Operating (loss)/profit

(4,365)

1,270

2,514

Net realised/unrealised (loss)/profit on AFSA

3,625

(2,333)

(4,471)

Impairment of intangible assets

300

Equity settled share-based payments

3

2

Decrease/(increase) in trade and other receivables

261

(19)

(320)

Increase/(decrease) in trade and other payables

28

(376)

(83)

Net cash outflow from operating activities

(448)

(1,458)

(2,058)

Taxation

Cash flows from investing activities

Payments for investments in AFS assets

(476)

(214)

(214)

Receipts on sale of AFS assets

438

16

7,118

Payments for investments in associates

(345)

Investment in exploration costs

(100)

(312)

(270)

Net cash outflow from investing activities

(138)

(510)

6,289

Cash flows from financing activities

Net (loan repayments)/borrowings

(1,176)

(5,400)

Finance cost

(59)

(99)

(986)

Net cash inflow from financing activities

(1,235)

(99)

(6,386)

Net (decrease)/increase in cash and cash equivalents

(1,821)

(2,067)

(2,155)

Cash and cash equivalents at beginning of period

2,037

4,192

4,192

Cash and cash equivalents at end of period

216

2,125

2,037

 

NOTES TO THE INTERIM REPORT

FOR THE PERIOD ENDED 30 JUNE 201

 

1 BASIS OF PREPARATION

The interim financial statements have been prepared in accordance with applicable accounting standards and under the historical cost convention.  The financial information set out in this interim report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The Group’s statutory financial statements for the year ended 31 December 2017 have been delivered to the Registrar of Companies. The auditor’s report on those financial statements was unqualified.

The principal accounting policies of the Group are consistent with those detailed in the 31 December 2017 financial statements, which are prepared in accordance with International Financial Reporting Standards (IFRSs), as adopted by the European Union.   

GOING CONCERN 

The Directors have prepared cash flow forecasts for the period ending 30 September 2018. The forecasts demonstrate that the Group has sufficient funds to allow it to continue in business for a period of at least twelve months from the date of approval of these financial statements. Accordingly, the accounts have been prepared on a going concern basis. 

CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. 

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results 

2 SEGMENTAL REPORTING 

An operating segment is a distinguishable component of the Group that engages in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the Group’s chief operating decision maker to make decisions about the allocation of resources and assessment of performance and about which discrete financial information is available.

The chief operating decision maker reviews financial information for and makes decisions about the Group’s performance as a whole. The Group has not actively traded during the period.

Subject to further acquisitions the Group expects to further review its segmental information during the forthcoming financial year.

  

3 PROFIT PER SHARE  

The calculation of the (loss)/profit per share is based on the (loss)/profit attributable to ordinary shareholders divided by the weighted average number of shares in issue during the period.

 

Unaudited

Unaudited

Audited

six months ended

six months ended

year ended

30 June 2018

30 June 2017

31 December 2017

£’000

£’000

£’000

(Loss)/profit on ordinary activities after tax (£’000)

(4,606)

895

1,189

Weighted average number of shares for calculating basic loss/profit per share

  7,851,440,338

  7,773,489,131

  7,811,370,698

Share options and warrants exercisable

  1,259,575,345

  1,689,215,294

  1,664,564,973

Weighted average number of shares for calculating diluted loss/profit per share

  9,111,015,683

  9,462,704,425

  9,475,935,671

Basic and diluted (loss)/profit per share (pence)

(0.0587)

0.0115

0.0152

Diluted (loss)/profit per share (pence)

(0.0506)

0.0095

0.0125

 

 

4 SHARE CAPITAL

 

Unaudited

Unaudited

Audited

30 June 2018

30 June 2017

31 December 2017

£’000

£’000

£’000

Allotted, issued and fully paid

173,619,050 deferred shares of 0.24p (30 June and 31 December 2017: 173,619,050)

417

417

417

7,851,440,338 ordinary shares of 0.01p (30 June 2017: 7,777,690,338, 31 December 2017: 7,851,440,338)

                      785

                      777

                      785

                  1,202

                  1,194

                  1,202

 

Brand CEO Alan Green talks Bacanora Lithium #BCN, Salt Lake Potash #SO4 & Great Portland Estates #GPOR on Vox Markets podcast

Brand CEO Alan Green talks Bacanora Lithium #BCN, Salt Lake Potash #SO4 & Great Portland Estates #GPOR with Justin Waite on the Vox Markets podcast. Interview is 8 mins 17 secs in.

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