And I agree with CE that the reason for the raise is not only to pay for care and maintenance costs, but really to increase our bargaining power when negotiating with the dozen or so strategic partners on the shortlist. We absolutely do not want to be seen as running out of time during a negotiation and I’m happy for them to keep extending this option until 1 of the 12 strategic breaks and go fk it and signs.
So whoever was ranting on about WR1 feeling desperate in bringing on a partner hence the capital raise, reality is the complete opposite. We only raised to demonstrate we are not desperate. True desperation would be to not raise, and go fk it and sign a low ball offer at the end of February with the greediest strategic of the 12.
Dragging this process out is a good play, in another 6 months the Chinese government coffers will completely dry out (they were already running out of money to pay for their version of Medicare after burning it all on COVID RAT tests during the lockdowns) and soon won’t be able to keep subsidising the African spodumene operations that they hoped could wipe out all global competition. When that happens, without Chinese government subsidy, African spodumene mines OPEX which was kept artificially low, will normalise and be much higher than the Australian and Canadian plays.
not advice
WR1 Price at posting:
32.0¢ Sentiment: Buy Disclosure: Held
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