Electra Battery Materials Corp V.ELBM

Prospectus closing

[dothemathpeople]

Should be interesting.  Also, from yesterdays PR, which I found quite misleading and not really truthful;

Refinery Overview

"The First Cobalt Refinery is a hydrometallurgical refinery located north of Toronto, in the community of Temiskaming Shores. The facility operated from 1996 to 2015, producing cobalt, nickel, copper and silver products."

But not really.  It never really did ANY of that.  The story circulated.  The hype came and went.  Three different other owners before FCC could not make it go.  "operated" is possibly the appropriate word even if it is being used loosely, lmoa. "Producing" is an even bigger stretch.

Will be quite the reveal once they disclose the terms in the prospectus.

I also disagree with whoever commented on an RS being potenitally "good" for this company.  They rarely are, especially in the short term.  But I do agree that it has to happen.  Been saying that for a few years now.  They are at over 550,000,000 right now, I speculate that the "prospectus" offering will puch them WELL over 600,000,000, closer to 650,000,000 FD.  Yikes.

[Mazz45]

Ugh, there is no prospectus and no incremental dilution. They are working on securing a loan for 45M USD for the refinery through CIBC. it will be a secured loan against the refinery that has upwards of a valuation equal to or greater than the current market cap ;).

[dothemathpeople]

yer right, but they were not; First Cobalt correction   2021-07-15 10:57 ET - Correction   First Cobalt Corp. was not halted at the open this morning, as announced in Stockwatch on July 15, 2021. The halt was intended for Fife Capital Corp. Stockwatch regrets the error. © 2021 Canjex Publishing Ltd. All rights reserved.

[dothemathpeople]

Secured against the refinery? "upwards of a valuation equal or greater to the current market cap"?!?!  Um, no.  Current market cap is around $135,000,000. So you are WAY OFF Mazz. Way. You want to check your math?

[Mazz45]

$139 NPV.  Not sure if that's in USD.  Of course this number changes with market conditions etc but a good general guidance.   $139 million after-tax net present value (NPV) using an 8% discount and 53% after-tax internal rate of return (IRR), representing a payback period of only 1.8 years https://www.firstcobalt.com/projects/first-cobalt-refinery/refinery-studies/

[BlueMeanie]

Wording directly from the provided website "All amounts are in US dollars unless otherwise indicated."

[dothemathpeople]

Either way, YOUR point was that the loan would be valued off of, or at,  the market cap, which is completely absurd.

[Mazz45]

No I said the company valuation here is cheap.  The refinery is valued at the companies market cap, plus cash plus Idaho, plus plus plus. they are not doing a prospectus, they are getting a secured loan to expand the refinery using the actual asset as collateral.

[dothemathpeople]

"it will be a secured loan against the refinery that has upwards of a valuation equal to or greater than the current market cap ;)" Is your actual quote.  Nothing about "cheap". Your "valuation" method for FCC is very enthusiastic, and entirely based on BS.  Market cap is not a true reflection of value.  That building is worth nothing as it stands