GLN 1.61% 15.3¢ galan lithium limited

General Discussion Banter GLN, page-12838

  1. 13 Posts.
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    From a recent news article - dont hate the player hate the game:

    1. Unproven technology and process risks: GLN is still in the early stages of developing its lithium extraction process. While they have done some small-scale testing, the technology is still unproven at commercial scale. There are risks that the process may not work as well or be as cost-effective at scale.

    2. Permitting and regulatory risks: GLN still needs final regulatory approvals and construction permits for its commercial operations. There is no guarantee these will be granted on time or at all. Any delays could impact the project timeline and economics.

    3. Uncertain funding for expansion: GLN will likely need significant funding to achieve its expansion plans beyond Phase 1. It is uncertain whether they will be able to secure this funding and what the terms might be. Any dilution or debt costs are not factored into the economics at this point.

    4. Reliance on lithium prices: The project economics are highly dependent on forecast lithium prices remaining high. If prices fall, the project returns could be severely impacted. There is no certainty prices will follow forecasts.

    5. Concentrated resource and project: All of GLN's current lithium resource and plans are concentrated in a single project (Hombre Muerto West) in Argentina. This provides no diversification. Any localized issues could significantly impact the company.

    6. Political risks in Argentina: There is a history of political and economic instability in Argentina. There are risks of changes in legislation, nationalization, inflation, etc. that could adversely impact GLN's project.

    7. Early stage company: GLN has limited operating history and financial track record. It could be risky to invest in a relatively new and unproven company in a volatile sector like lithium.

    In summary, GLN is a speculative investment at a very early stage of development. While the lithium market opportunity appears strong, there are still significant risks and uncertainties that could impact GLN's ability to capitalize on that opportunity. Caution is warranted for investors.

 
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