That would be a stupid move. LTR is toast in my opinion. They had $515m in cash end of December and $300m debt. They are going to try to get to production, but even if all goes well with ramping up, then they will barely breakeven at the end of ramping up(could take a year or perhaps longer to get to full production). By the time they have finished construction LTR will be in net debt. Remember that they were looking to finance an additional $460m to see them through. Also had cost overruns in the past. Finance is not going to happen while lithium prices remain this low in my opinion. So the only option will be to issue shares before the end of the year and hope the lithium price rises substantially. Otherwise they will get bought out for peanuts or go in administration. You need cash to run a business in tough times. At the moment LTR is not getting any.
Better for PLS to wait another 6-12 months and then have a go. PLS has expansion options that will still be cheaper than to pay $2bn+ for LTR.
Good News & Bad News, page-37923
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Last
$3.07 |
Change
-0.190(5.83%) |
Mkt cap ! $9.239B | |||
| Open | High | Low | Value | Volume |
| $3.19 | $3.20 | $3.07 | $96.53M | 30.85M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 41 | 815921 | $3.06 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $3.08 | 309816 | 3 |
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| Last trade - 16.10pm 28/06/2024 (20 minute delay) ? |
| PLS (ASX) Chart |