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KDR, KIDMAN RESOURCES LIMITED
nipper
post Posted: May 23 2019, 10:47 AM
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In Reply To: nipper's post @ May 2 2019, 09:41 AM

QUOTE
Wesfarmers (ASX:WES) advises that it has entered into a Scheme Implementation Deed with Kidman Resources Limited (ASX:KDR).

The SID confirms the terms of Wesfarmers’ proposal announced on 2 May 2019 to acquire 100 per cent of the outstanding shares in Kidman for $1.90 cash per share by way of a scheme of arrangement. Entry into the SID follows the completion of Wesfarmers’ due diligence and the satisfaction of conditions to the Process and Exclusivity Deed with Kidman.

The Kidman Board has unanimously recommended that Kidman shareholders vote in favour of the Scheme in the absence of a superior proposal and subject to an independent expert concluding that the Scheme is in the best interests of Kidman shareholders.

The Scheme is subject to customary conditions, including Kidman shareholder approval, court approval, no material adverse change and no prescribed occurrences, and all warranties being true and correct in all material respects.




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: May 2 2019, 09:41 AM
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QUOTE
• Wesfarmers has entered into a Process & Exclusivity Deed with Kidman Resources in relation to its proposal to acquire 100% of the outstanding shares in Kidman for $1.90 cash per share, representing a transaction value of approximately $776 million

• Consideration delivers Kidman shareholders an attractive premium & certain cash return:
– 47% premium to the last closing price on 1 May 2019
– 44% premium to the 60-day VWAP to 1 May 2019

• Proposal to be effected via scheme of arrangement & is supported by:
– the Kidman Board, key management & a number of Kidman’s major shareholders, who collectively own ~17% of outstanding shares (subject to there being no superior proposal & the independent expert concluding that the scheme is in the best interests of Kidman shareholders)
– Kidman’s joint venture partner, Sociedad Quimica y Minera de Chile S.A. (SQM)




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
blacksheep
post Posted: Dec 18 2018, 01:13 PM
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In Reply To: blacksheep's post @ Dec 10 2018, 09:18 PM

Kidman confirms receipt of SQM milestone payments; SQM earn in to Mt Holland Lithium Project complete
18 December 2018
QUOTE
Kidman Resources Limited is pleased to advise that its joint venture partner in the Mt Holland
Lithium Project, Sociedad Quimica y Minera de Chile S.A. (SQM), has now completed its
milestone payments in respect of its earn in to the project.

SQM has now made a payment of US$25 million directly to Kidman and a payment of
US$60 million directly to the Covalent Lithium joint venture (Kidman share 50%). This funding
will be used to underpin the further advancement of the Mt Holland Lithium Project.

This marks completion of the SQM earn in for its 50% share of the Mt Holland Lithium Project
announced in July 2017.


SP currently $1,29/share - down 6.18%
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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Dec 10 2018, 09:18 PM
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One of a few stocks in the "green" today - up 7% on the settlement news.

SETTLEMENT OF MT HOLLAND TENEMENT EXEMPTION AND FORFEITURE MATTER
10 December 2018
QUOTE
Kidman Resources Limited today announces that it has executed a deed of settlement with
the objectors to the applications for exemption from minimum expenditure obligations on
Mt Holland tenements.

All objections to the applications for exemption have been withdrawn and forfeiture
applications at Mt Holland will be dismissed.

Kidman has formally requested the Minister for Mines and Petroleum to grant exemption
certificates for all tenements that were subject to exemption objections and will lodge dismissal
orders with the Perth Mining Warden on all other tenements.

The specific terms of the settlement are confidential and not material to Kidman.
This settlement provides certainty for Kidman and its joint venture partner Sociedad
Quimica y Minera de Chile S.A. (SQM) and will enable Covalent Lithium to progress the
integrated project development unimpeded. Conclusion of these matters will trigger payment
of SQM’s outstanding milestone payments, being US$25 million directly to Kidman and
US$60 million directly to the Covalent Lithium joint venture (Kidman share 50%).

Further to the funding term sheet announced on 25 October 2018, Kidman and SQM are
continuing to progress discussions on legally binding agreements in relation to the
US$100 million capital expenditure facility. This facility, together with the further outstanding
milestone payments by SQM, provides Kidman with sufficient funding in relation to joint
venture cash calls through to a final investment decision and the initial stages of construction
of the Mt Holland Lithium Project.

Kidman Managing Director and CEO, Martin Donohoe, said: “This settlement resolves this
matter completely.
With the settlement concluded, funding secured through to final investment
decision and our recent lithium hydroxide offtake agreements with Tesla, Inc. and Mitsui & Co.
Ltd, we will be able to wholly focus on progressing the development of the Mt Holland Lithium
Project, secure further strategic offtake agreements with key global partners and continue our
discussions in relation to the provision of debt facilities with prospective lenders.
”


Short positions @ 4 December 2018 = 7.76%
https://www.shortman.com.au/stock?q=kdr

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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Oct 25 2018, 12:31 PM
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In Reply To: blacksheep's post @ Sep 20 2018, 04:05 PM

One of the few stocks in the green today - shorts covering after todays funding ann? Short positions @ 19 October 2018 = 7.26%. SP currently up a.36% @ $1.12
https://www.shortman.com.au/stock?q=kdr

QUOTE
US$100 million capex facility plus US$10 million funding for near term JV commitments
25 October 2018
Kidman Resources Limited (Kidman) today announces it has entered into a funding term
sheet with its joint venture (JV) partner in the Mt Holland Lithium Project,
1 SociedadQuimica y Minera de Chile S.A. (SQM). Pursuant to the term sheet, SQM has agreed to
provide Kidman with a US$100 million capital expenditure debt facility (Capex Facility) to
partially fund Kidman’s share of construction of the Mt Holland Lithium Project (or Project),
and a US$10 million facility to fund Kidman’s share of JV cash calls prior to the receipt of
SQM’s outstanding milestone payments (Working Capital Facility).


In addition, the parties have agreed to consolidate the remaining studies for the Mine &
Concentrator and Refinery into two integrated project studies and have also agreed to
consequential amendments to the Mt Holland JV agreement (Mt Holland JV Agreement).
The term sheet covers the essential commercial elements of the arrangements and is subject
to the parties entering into legally binding agreements, which the parties are targeting on or
before 31 December 2018
.

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--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Sep 20 2018, 04:05 PM
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Posts: 5,707
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In Reply To: blacksheep's post @ Aug 14 2018, 10:08 PM

Short positions on the rise - at 14 September 2018 = 4.94%
https://www.shortman.com.au/stock?q=kdr
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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 


blacksheep
post Posted: Aug 14 2018, 10:08 PM
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In Reply To: blacksheep's post @ Aug 14 2018, 12:25 PM

KDR released the SQM announcement @ 12.30 pm - judging by the daily chart below, some were in the know beforehand
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--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Aug 14 2018, 12:25 PM
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In Reply To: blacksheep's post @ May 18 2018, 09:16 PM

SP up 11.4% currently @ $1.27, following SQM Press Release - sale of SQM's participation in Minera Exar and concentrating on expansion projects in Chile and Australia
QUOTE
SQM’s CEO, Patricio de Solminihac, commented: “We expect the lithium market to continue its strong
growth, and SQM wants to take advantage of this opportunity to develop projects on a large scale. For
this reason, we will focus our efforts on our expansions in Chile, where we expect to almost quadruple
our capacity in the coming years. We will also focus our efforts in Australia, where we see significant
production potential given the size of the existing resource
s.”


Short positions @ 7 August 2018 = 2.47% - no doubt they will be covering.
https://www.shortman.com.au/stock?q=kdr
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--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: May 18 2018, 09:16 PM
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Posts: 5,707
Thanks: 2127


In Reply To: blacksheep's post @ May 16 2018, 09:45 PM

Here we have two different POV on KDR

1. Martin Conlon, see previous post, who singled out some of the companies that he believes have benefited from outsize valuation gains in an environment of "speculative frenzy". - that included KDR with a 358 % return. Conlon, of course, made his comments prior to the Tesla deal ann

2. JPMorgan came out with a revised TP yesterday following the Tesla deal ann - JP has also made some "assumptions" on price and tpa

Will be interesting to see how this transpires

QUOTE
Price Target (A$) 3.20
Price Target End Date 31-Dec-18

We upgrade our PT by 15% to A$3.20. Retain Overweight.
 Tesla deal first of multiple offtakes: We believe this Tesla offtake agreement will account for around 5ktpa of KDR’s 22ktpa of lithium hydroxide production, meaning KDR still has 75% of annual volumes available for offtake. Our assumed US$15,000/t fixed price would deliver strong outcomes for both parties; Tesla locks in a portion of its raw material costs while KDR has security of revenue and cash margins when looking to secure funding for its share of capex (JPMe A$500m).

 KDR has funding flexibility: We feel the nature of this deal improves KDR’s proposition to debt financiers: a low-risk, high-margin integrated lithium business based in Australia, in joint venture with a global major in SQM. We assume A$350m debt & A$150m equity (at A$2.20/sh) to fund Mt. Holland, but offtake prepayments/equity stakes are also options.

 A$3.20 price target (from A$2.80) Phase I de-risked: Our PT is set at 1x NPV, +15% due to i) a fixed price in the first 3 years and ii) less dilution from an equity raising. Downside risks: poor study outcomes.

https://www.shortman.com.au/stock?q=kdr
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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: May 17 2018, 09:41 PM
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In Reply To: blacksheep's post @ May 17 2018, 01:19 PM

Odd that Tesla seems to sign supply agreements with non producers rather than producers. Back in 2015 Pure Energy Minerals Limited (TSX) announced they had entered into an agreement with Tesla Motors Inc for the potential supply of lithium hydroxide from their planned Clayton Valley, Nevada Lithium Brine Project. They were back then yet to prepare a Feasibility Study that confirmed technical/economic viability of the project. I posted the following on another forum at the time re their agreement.

QUOTE
This is, IMO, an accurate description of the Pure Energy out of the money call option deal with Tesla. Note also the last sentence .. "TSLA will purchase a set amount at below market prevailing prices"...so while everyone is "excited" about getting into bed with Tesla, they may well screw you on price. Having your name associated with Tesla does seem to have the advantage of bringing on board those prepared to finance/build the mine.

extract...........

"Semantics aside, the agreement between the companies offers an interesting window into TSLA’s supply chain strategies, and what the company has done here has purchased an out of the money call option on future lithium supply.

Out of the money options have no intrinsic value (they do have time value, of course) but are effectively used as a hedging strategy to lock in a given price in the future depending upon the option purchaser’s view of future asset prices.

The only capital in play is the option premium the option purchaser pays. The only “capital” TSLA has at risk here is its name.

The company has yet to commit any money that we know of to future supply of lithium, cobalt, or graphite – and this, to be clear, is still a significant risk for the company. The much more significant risks of financing a mining project, building the mine, and producing lithium hydroxide to TSLA’s specifications still rest squarely with the REM/BCN joint venture (known as the Sonora Lithium Project Partners). Once the mine is built and lithium hydroxide is produced, TSLA will purchase a set amount at below market prevailing prices."

and

" I would expect to see TSLA and perhaps other battery manufacturers undertake additional “out of the money call option”-type deals as the lithium market tightens over the next two years. This is also likely to be true for cobalt and graphite"
http://static1.squarespace.com/stat...feab...0985624451/TSLA call option.pdf


Bacanora Minerals (also TSX) also signed a "conditional agreement" with Tesla back in 2015 to supply lithium hydroxide from the Sonora project - it also had not completed a FS at the time of signing

KDR's current position in their timeline
Q1 CY18: Revised Mineral Resource estimate
Q2 CY18: Completion of mine and concentrator feasibility studies
2H CY18: Decision to Mine and build concentrator
2H CY18: Refinery feasibility study completed
and
2H CY21: First lithium hydroxide / carbonate production

KDR's agreement with Tesla is for a fixed-price take-or-pay basis, a big plus, but we don't know what that price is or the other commercial terms of the Agreement - which they naturally say are strictly confidential.

I would imagine that one of the conditions in the agreement would be the product from the commercial plant, when built, will need to be qualified and required to meet Tesla's specification.

One also has to ask the question - will Tesla be around when KDR is in a position to supply to them in 2021? They seem to be struggling in a few areas lately and going through restructuring. Luckily George Soros seems to have rescued Tesla (for the moment) with his $35 mil Bonds investment - https://www.rt.com/business/426951-tesla-soros-bonds-stock/

SP ended the day up 2.78%, so the market liked
https://thewest.com.au/business/mining/elon...l-ng-b88838581z

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--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
 


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