RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:logistics for a question
Fortunately, I made an audio recording. (Other CCs have disappeared from EV's website at times).
Please do your own DD. I am writing quickly and this is NOT a word-for-word transcription; I may be filling in with my own vocabulary in places.
No new info. discussed - only things in public record.
Serb government slow due to PM becoming President and new PM has been appointed 48 hours ago.
Corporate update:
4 business development tracks:
1. Piskanja exploration - get through the feasability and the mine development. Need 12 to 18 months of "hard work" to get to feasability. It needs $4.5 million US. Very skilled work plan in place with experienced team ready to roll. "Well positioned" to complete work. Increases value and de-risks project. Feasability increases estimate accuracy from 65% - 75% to 95%. Attracts whole new demographic of investor at this point. We have 36 months left on the license and faliure to work on the ground could result in a lost license. This has happened to some companies recently.
2. IR program; FronTier to get institutional interviews with finance people to create increased public awareness. Mining market in multi-year slump, since 2008. People still don't understand Boron well and not many people follow it. EV has too many shares outstanding - difficult to move share price with so many outstanding shares; also people scared about the number of shares outstanding.
3. Looking for partners; many different shapes and sizes: offtakers of boron; project experts (mine development) - these people can bring expertise and money; underground mining experience, boron sales experience. Looking for a partner with as many of these as possible. Not close enough to production for offtakes to be serious players here. We need to be 12 months from production for offtakes to be involved. Project investors are slow to act now: with boron, there is a steep learning curve. Some potential partners may know boric acid, but not mining; others may know about mining, but not about boric acid production. Due to mining slump, it's hard to get full value in a potential JV; partners are looking at market cap and not value in the ground (Net Present Value). Some companies that have cash have an abundance of junior mining projects, due to market conditions. He mentioned the press release - in DD with a partner. They would be a good fit and they both continue forward - no guarantees though it's going well so far.
4. Pobrdje. Everyone wants it: IBAR, feds, local, unions. Serb government in flux. This would help with cash flow within 3 months. The financing to mine is set up. Would get us in boron business: train workers, etc. Would make a great pilot project. Challenges: Serb government; IBAR is in bankruptcy which complicates the process; we must make sure our interests are projected from prior liens and creditors. There is complex legal work currently going on here to make sure we are protected.
Only points 1 and 2 are within out direct control. The final 2 point are indirectly in our control. So they move all forward, just in case. Point 1 is the most critical.
Share consolidation:
TD blew his horn on how much money they've been able to raise over the years. $28 million over the life of the company. $13 million "in the ground" (I assume he means drilling samples).
Fundraising is harder because TSX prevents PPs from being placed below 5 cents. Therefore, no PP buyers can make a profit. (Honestly, I found this quite technical and difficult to follow; I do believe him, he just described it quickly and I would have to look at the math). He implied PP buyers could not make a profit when it's below 5 cents.
Also, some institutions can't buy into stock below a certain share price. There is a reoccuring concern in the fianance community about the number of outstanding shares. "Share structure and capital scares them."
Fewers outstanding shares allow potential for news releases to move the SP. Makes convertable debt and asset acquisition easier (don't totally understand this).
One questioner asked (via Blake) whether they had any institutional buyer set up if they consolidated their shares. The answer was No.
Consolidation is 7:1 set arbitrarily. 10:1 is offputting because that's what marajuana companies do when they take over from defunct mining companies and seems like a major dillution.
TD argued that share consolidation is net neurtral. 11 of 13 examples he looked at (TSX Venture most mining some hi tech and pharma) came out ahead in the long run. Companies investigated completed rollback within 12 months and companies were not changing their core business.
TD did explain that future outcome depends on results.
That's it to 1hr 4 mins. The entire call was 1 hr 50 mins. approx.
Good luck to all,
Nobodysfuel