Ann: Trading Halt, page-42

After two dramatic days of PLL (one by itself and one from macro market), here are some numbers (rough) and thoughts (imo only and all might already be self-evident to some of the smart investors here):

Shares and capital/spend:
In 2019:
Feb 2019 issued approx 111m shares x A$0.11 = A$12m
July 2019 issued approx 145m shares x A$0.145 = A$21m
Hence total cash raised in 2019 is A$33m (on top of cash left at bank at the time). At the end of 2019, total SOI 826.3m (including US ADS excluding options and performance rights 72m) and the remaining cash balance: US$11.4m (A$16.3m?).
Main work/milestones achieved in 2019:
* resource/mine life increase; * section 404 Permit; * Various prep work for PFS.

In Q1 2020, hydroxide testwork continues and at the same time entering pandemic period. As of 31stMarch 2020, cash remaining US$9m (A$12.8m?) after spending US$2.4m in Q1.
Q2 2020 till today (12June 2020):
* Chemical plant PFS released;
* New CR in June 2020;
new shares issued: 206.5m for US ADSs and 120m placement in australia = 326.5m new shares.
Total SOI now: 326.5m + 826.3m = 1.153B (excluding 72m options/rights), and total cash raised is A$29m plus remaining A$8m (?) in bank (US$9m - US$3.5m (estimated spend so far in Q2) = US$5.5m+) = A$37m approximately total cash on hand.

How far can we go with this amount of money? From the management's 'estimate' this will allow them to have sufficient cash flow to "operate for the next 12 months and to maintain adequate liquidity to satisfy working capital requirements...".

The remaining milestones before Financing and Construction:
1. Completion of hydroxide testwork;
2. major off-takes;
3. Chemical plant permit;
4. DFS.

Based on PLL's raises and spendings in 2019 and 2020 so far, not sure tbh if it can last until the completion of DFS.

In contrary KDR didn't do many raises after JORC announcement (from memory) before its final takeover (A$1.9/sh) by WES Group:
KDR's total SOI was always in 330m - 400m range in 2-3 year's timeframe if i'm right (but i did remember KDR's MD kept his promise not to dilute shares for all share holders' benefit);
Also KDR had relatively early major partner (SQM) joining in and hence had cash backed up (e.g. receiving milestone payments etc.) for most of their remaining work, and they didn't even have DFS in the end only integrated PFS.

Understandable that time and Lithium sentiment is different now. Yet the overall EV trend is still up and faster. Tesla just overtaken Toyota become #1 in MC auto industry, it's model3 become #1 seller in UK as an example, and its sp just hit US$1000 recently. New Giga/Tera factories and other major players are catching up too, so will needs lots of Lithium even using LFP batteries. (There are some discussions about new battery tech e.g. solid-state etc., i remember watching one interview (sorry forgot where/who) that was quite persuasive from several perspectives in e.g. industrial scale commercialising, development timeframe, and even use Tesla as an example for its enormous resourcing (talents, fund etc.) capabilities yet they are not going to that direction in forseeable future).

Of course Piedmont has its own edges e.g. great geo location, competitive cost, well connected to various resources in US (i believe) etc. and strong management team plus a top sales executive just recently joined PLL all will help Piedmont to be more close to success. Just hope the management be more prudent and not overly confident including the way dealing with existing PLL share holders (sorry have to use KDR as an example again even both are adopting the same integrated approach). As some sh rightly pointed out in twitter posts that this raise has wiped out the gain that shs strived to have from early April and disappointed many (i'm one of them hence my lengthy post). Can only hope that the MD has some plans ahead and with strong management and execution he will eventually get the sp in a respectful figure in the near future.
Just imho. GLTAHs!