I never questioned the ability of the company to raise money. I questioned the idea that it won't need to raise more than 10% of its capital in new fundraisings to fund a BFS/DFS, AND to keep exploring the Fe and REE tenements (and their other JVs). I also questioned the analysis which somehow blithely assumed that GXY can raise 100% of its project funding via debt within the next 2-3 years, in perhaps the worst credit market conditions since the Great Depression.
That is different from saying "the company cannot raise finances". GXY can obviously raise finances - by relying on its directors to exercise their 20c oppies and take up millions of dollars in (margin) loans. And as ABC Learning, Tricom, et al. have shown, that can be a significant risk. Beyond the directors raising money - which we must admit has its limits unless Tricom/StateOne/whoever is particularly insane in underwriting the option loan - the company must, by ALL logic, raise money on the equity markets to part-fund Cattlin.
And it's relevant to discuss this here, as well, because GXY has thrown the gauntlet down and declared they are aiming for LiCO3 production, not just spodumene, in order to be in direct competition to ADY and vice versa. If we all think that GXY tossing material into a tight market won't dump the price both companies get for the products, you're ignorant.
ADY Price at posting:
0.0¢ Sentiment: LT Sell Disclosure: Not Held
