I only arrived home a couple of hours ago after staying in Melbourne last night after the flight over from Perth yesterday. I was very contented with the voting results as MIN supported all resolutions, so they are definitely now fully on board. This is an excellent result by itself and any lingering worry I had about them doing something out of the ordinary was unfounded. I was glad to be wrong on this, but in the end we were prepared for anything. The beauty was that nothing was out of the ordinary, the meeting went according to plan and both Ken and Tony delivered passionate speeches on how great the demand for lithium is, especially after their trip to China.
Nobody seems to be concentrating on their trip to China, only getting back late at night the day before the AGM. Ken sent me an email on an issue at 2.40AM on the 24th. That is dedication to your work.
Whatever deal they were working on was obviously not completed on time, but with the shortages of lithium in China, I'm very sure it will be completed 'soon'.
To me with the presentation that Ken gave, and I hope others also sensed it at the meeting, he has been bitten by the lithium bug and is passionate in his belief for the future demand, as well as current demand.
My reading between the lines is that they have their plans and know how to get where they are going. Ken mentioned the DSO sale as an opportunistic deal, obviously serving a need in the short term, but the main play is with others like the GLC deal who are aware of what we are doing with the DSO to Ruifu.
GXY also have a deal with the same outfit and have already received the first 50% of payment for their first shipment, I don't know enough about GXY to know when they get payment for the rest, but do know their ore is 5.5% and has a 5% mica level, not something most converters want.
We will be providing quality ore, but well after the deal with GXY.
My understanding is that we are getting paid up front, before delivery of ore, so all should be good. With the current shortage of LCE in China and not enough concentrate to run all the plants in China now, I will be very surprised if more deals for DSO are not done, but only enough to keep the market going and not so much that we flood the market.
No-one else will be in a position to sell DSO ore. We are it, and it will not take the Chinese long to work it out.
People were questioning how we were going to complete financing by the end of the year. IMO a BOA (with upfront payments) and another DSO deal will do the trick, and might even cover the need for any short term financing during the commissioning phase and run up to full operating capacity.
Has the market woken up to where we truely are at and the real opportunity here? No way, we are IMO well under market value and any large organization trying to grab a large slice of us is running into difficulty as we the retail holders just hold on, and hold on. There will be no Takeover of us if we the retail holder just hold our positions. We need do no more or less, just hold and not give the big boys a look in on our magnificent asset.
I'm all ears to hear of a better asset to own, but I just don't know of one, nor are any lithium companies on the horizon. I do own some shares next door, but it is basically the same asset, but more shares, and no DSO sales, plus a smaller resource, and less room for expansion.
Is management perfect? No, none ever are. Can different people see different ways things could be done? absolutely, but only in hindsight will you know if a decision could have been better or worse. I'm still here and despite rumours to the contrary have not sold out, no do I have plans to. I believe the big money is still ahead of us and all we have to do is hold. Of course all IMO.
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