Pinned straw:
A webinar was run by Phil today on the Zesty project. Not much in the way of new information was presented except for some of the following notes.
Slide Deck:
https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02815944-2A1528298
There is a distinct feeling that Calix is in a position where is going to need to start fronting up some decent chunks of cash to get all these projects in the works off the ground. This is only reinforced by the Heidelberg JV announcement also today.
https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02815913-2A1528288
During the presentation Phil did state that for Zesty, they would be looking at primarily investment in the Zesty subsidiary as there was now appetite for further capital raises in Calix at the current share price. So potentially he is also shopping Leilac around as well.
There were lots of large TAM figures thrown around for ZESTY, which were based on a $7.5/t royalty rate. Phil did get a little cagey when asked about where it comes from, but said that they wouldn't use it unless they were confident that it was a realistic target.
The project pipeline outside of LEILAC was discussed for Sustainable Processing business, which hasn't been displayed before (as far as I am aware). It shows multiple projects across all mineral types that Calix is targeting. These project pipeline numbers always need to be taken with a hefty dosing of salt as the timelines for the projects tend to run years before they get off the ground.
@Bradbury Thanks for the summary
The royalty pricing for ZESTY doesn't make much sense to me although they are less exposed to cost fluctuations by being a provider to the producer.
Unfortunate there are still no more agreements for Leilac outside Heidelberg Cement.
The market cap is now below 200m and trading close to what I think is fair value at the moment with a Price to Sales about 6+
Been waiting patiently for CXL price to settle but I think it could go down more. Seems that CXL will drop out of the ASX300 and perhaps the index funds have already rushed for the exit.
CU6 or DRO could easily take its place in the ASX300.
Not really a buyer here unless there is traction in the other businesses such as Crop protection. I'm also not sure how to rate the PLS business given Lithium is still at lows.
It is unfortunate since I really like what Calix is doing.