GLN 0.00% 15.5¢ galan lithium limited

Lithium brine degradation, page-57

  1. 5,298 Posts.
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    What is clear to me, especially considering the complexities of disposal, is that it was completely irresponsible to commence a) construction and b) pumping the aquifer to fill the ponds, before they had completed their financing process. I cannot remember the last time a company attempted a project build this way. They didn’t even have a FID stage - one month after the DFS was out, the same month they got their permits, they hit ‘go’.

    I always respect your views @daando37 but I still hold that there’s no way they can continue to fund this via equity (or even a JV, given the value of the company) without blowing apart the capital structure, so the hard path will have to be trodden. That’s why time is of the essence - every dollar they continue to spend on construction is a dollar less they have to deal with breaking contracts, employee payouts, possible environmental liabilities, funds for corporate purposes over the coming 12 months, etc.

    Hopefully I am proven terribly wrong, but my doubts over the past 18 months regarding their abilities to finance this have not been.
 
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