Yesterday Bolivia was at the centre of international news, with some military unrest coming to the fore.
The question now is will there be good Bolivian news evolving at the Hilton London Paddington at Midday on Monday 9th July, which is when Clontarf Energy (LON:CLON) will be holding it AGM covering its 2023 results.
The Business
The £5.24m capitalised company is an emerging lithium, and oil & gas Exploration & Production company focused on South America and Africa.
The last trading year saw the group’s principal activities driving ahead its Lithium business in South America.
The Report & Accounts note that the group incurred a loss for the year of £870,061 (2022: £4,766,646) and had net current liabilities of £1,277,374 (2022: £2,094,612) at the balance sheet date.
Going Concern
It was stated that those conditions represent a material uncertainty that may cast doubt on the group’s ability to continue as a going concern.
Clontarf has successfully accessed the financial markets when necessary.
Subject to technical verification of its exploration projects, and permitting, the company is confident of adequate funding, whether in London or Australia, for near to medium term ongoing activities.
It raised a gross £400,000 in March this year, with the net proceeds being pitched to be used to advance Clontarf’s lithium projects in Bolivia, and neighbouring countries, as well as on petroleum projects in Ghana, Australia, and elsewhere, and for general working capital purposes.
In late May the company raised another £300,000 gross with a Placing of new shares at 0.035p per share.
Management Comment
Chairman David Horgan stated that:
“There has been rapid progress on developing high-purity, cleanly produced battery-grade Bolivian Lithium for the European market.
European institutions understand that only brines can produce clean Lithium of the requisite quality for demanding future applications.
Hard rock sources in Africa and Australia can supply technical grade material for Chinese upgraders, but at an environmental cost.
Many rock miners are currently high-grading, mining only the richest and best minerology sources.
This satisfied demand growth but is not sustainable at the expected demand volumes, purity requirements, and especially cleanliness standards.
Burning rocks in coal-fired furnaces at circa 800ºC for days is not environmentally friendly.
Clontarf has worked on this opportunity since 2008.
Progress was slow until establishment of the Bolivian National Lithium Company (YLB) under the 2017 Lithium Law.
Now, via the current convocatoria, there is a clear route to negotiating contracts with robust legal title.
The appointment of dynamic experts at both National Lithium Company and Ministry levels has simplified the approvals’ process.
Bolivia now focuses on boosting investment and exports, mainly targeting the premium markets in EV and grid storage batteries, as well as emerging high-tech applications.”
The company’s shares have seen a spectacular rise in price since they touched 0.013p on 6th June.
Today they are trading at around 0.073p, at which level the company is valued at £5.24m.
Investors will certainly be looking forward to the forthcoming AGM and hoping that boss David Horgan has good news to impart.