LRS General Discussion, page-15229

Offtake will be crucial as we are now in a little bit of a precarious situation as market cap is $500 million and we need nearly $400 million AUD for phase one capital expenditure. If we are unable to secure financing or some offtake loan it will be a massive CR or even quite a large one to dilute.

This was not such an issue before but I think the shorters are now onto this, hopefully with such a short payback period financiers particularly in Brazil may be able to come to the party though. Also with 25 interested offtake partners you would think they are in a position to drive a very hard deal.

We will see what they spin up but I am not overly confident in the company with the offtake on two fronts:
1. Ensuring we are paid a premium for the spod given it is triple zero - they are likely to just link it to spot prices.
2. As above, extracting the best deal in terms of loans and funding construction.

Note: Lack of confidence comes from some of the CR's which have been done at lower prices, I know we are below 25c but they should have done it at 35c a month or so earlier! Maybe Tony just meant riasing funds when he says a capital raising? Such as a loan.

Previously I was open to part CR to a BYD type to give them skin in the game but at this price not sure I like that idea!

Will also be interesting once the Sigma domino (hopefully) falls what happens from there.