Tom Winnifrith's share tip of the year Number 2 - Sell Rare Earth Minerals at 0.7p

Comments

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   addick

   27 December 2015, 04:34

   I suggest you didn’t listen to all of Mr Rule’s podcast.At the end he suggests that maybe ‘two or three’ new suppliers will thrive. Specifically, he refers to those companies which are able to secure long term supply agreements with companies such as Tesla.
   Perhaps you are unaware that BCN has such an agreement?

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   warun boofit

   27 December 2015, 13:36

   I was nearly roped into REM a few years ago but was put off by reading about the high cost of extracting lithium from clay compared to the main players who get it from brine. Have I missed something in the meantime? Has BCN found a cheap way of getting the lithium from clay that makes them competitive and if they have whats to stop the brine extractors from doing an OPEC on any new upstarts to fuck them up ? One website is claiming that a $10000 electric car battery contains $100 worth of Lithium, thats less than the cost of the ash tray or maybe a tyre. Then there is the Powerwall battery which some have suggested can take care of worn out batterys discarded from Tesla cars, the economics of the Powerwall seem completely half baked to me, the ramping of the product would not be out of place on the LSE moron board. I am in no doubt that Lithium is one of the biggest ramparoonies since the serpent got Eve to bite the apple.

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   Mark

   27 December 2015, 13:56

   ADDICK, perhaps u are unaware that tesla don’t actually buy the lithium product which Bcn hope to produce, that whole off take agreement is a load of shit. Read this … http://www.discoveryinvesting.com/blog/2015/8/30/tesla-buys-an-out-of-the-money-call-option-on-lithium-supply. It’s another DL ramp on something worth Zero.

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   turbograndad

   28 December 2015, 03:30

   Lithium is prone to FIRE!!!!!!!!!, flammable ingredient of battery technology therefore more desirable ingredients are being used and developed, so long term not a bull case. I’m out.

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   addick

   28 December 2015, 05:02

   Mark, I’m perfectly well aware of the nature of the agreement.
   Interestingly, I didn’t read the article to which you refer in a negative light. Specifically, I noticed the comment towards the end which says that the writer regards this as an ‘interesting development’.
   I ‘m far from assuming this is a slam-dunk, but, and as Rule implies, of the lithium plays, those with some type of agreement with the likes of Tesla are better placed than others and this most certainly refers to BCN.
   I also believe it’s important not to confuse BCN with DL. Having made the investment on behalf of REM and fought to get his seat on the board, it’s my opinion that his absence will not be missed. The board of BCN are independent of his influence and this gives me confidence. The announcement of the Tesla deal was not a DL ramp, but came from the company and its management.(bear in mind he was only a non-exec and only held his place for a short time) I tend to view REM’s presence on the share register in much the same way as I would the ownership of a company by a private equity business. I may not like the private equity business itself, but that wouldn’t stop me liking the company in which it has an investment. People will have their own views about REM, but I feel it’s wrong to tar BCN with the same brush. Obviously, if people don’t believe the lithium story they should steer clear. However, if you take the opposite view, BCN is probably the most interesting play at the moment.

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   Mark

   28 December 2015, 05:30

   Addick, bcn the better bet of the 2 for sure, but as a non exec DL was tweeting constantly that he was “going to tesla to do a deal” surely it was DL who had that meeting, and DL who came out and announced this deal to the masses via BCN and REM rns