2017 or a Long term play.

Hey guys (& gals),

It's a been a while and while I have been here I've had nothing to add to the conversation. (Especially with the general direction that most of the threads have taken). Thanks for the vote of confidence to @thecone  

The reason for the heading is simple, it's talking about profits and it's why were all here. A lot of holders are still hoping to take a profit in 2017 and although I personally, am not as optimistic as I once was, there is still and outside chance to achieve this goal. The catch however is if you don't take a profit this year, this company is still and asset long term, especially with the CM results already released and hopefully the upcoming and the local Pardoo project that management still continue to work on during waiting periods. My point here is simple. If you have a better play available and it's in a smaller time frame, then your funds in CAD may be better invested in that other play and take your advice/ comments/ criticism etc to that thread. (But I know the FOMO will keep you here so just keep it down a tad hey lol) On a personal note, try having 88E options that expire in March 2018 and the company just had a shutdown until April / May 2018 because of cold weather in Alaska.

Now for the good stuff!

Spoke to Keith the other day
(these will not be direct quotes from Keith but my smaller version of our conversation for you)

I asked him about the first cap raise as I thought they may have been wanting to drill CM to further depths (while drill was mobalised) to gather that Lithium content at deeper levels. He said that there was no need as results at proposed depths were fine to establish projects potential. Instead the funds were to go into the direction of drilling in the newly acquired Rhodes Marsh Project residing north-west of the CM project in Clayton Valley (see ASX Ann 19th Sep 2017 for more info) and that another CR was also expected, hence the now in place Trading Halt.
I also asked him about the SP. He is aware of the SP and is hoping that the announcement with CM is enough to start having and effect on the market (obviously a positive one) but if it doesn't then a consolidation that was always going to happen in this Company, may have to happen in a dramatic fashion. I asked him if he meant that a consolidation would have to happen this year and he stated that yes it would, and he has a deadline and that deadline was around the AGM which is late November. I didn't press him about the the deadline or the consolation ratio. But this will all be on the basis of how the SP moves from now until then. So if SP moves well on CM release then don't expect a consolidation this year.

My thoughts to finalise.

There's always a lot of talk about how us scrub holders never have options to re-invest as holders on CR's etc. These processes take a lot of time and paperwork and also money. Sometimes for the sake of not receiving freebies, just getting the money raised in a quicker fashion may be a better play. (The SP is practically free anyways especially looking back to these prices in 2018, 2019 & 2020). The consolidation for me is a mixed bag. The SP can't go much further down but with (example only) a 10:1 ratio, a 0.003c SP moved to a 0.03c SP has more room to fall and if the fundamentals of the company aren't as solid for future investors then you might see more red in your Portfolio than you like. I read an article which I'll try to link about market consolidations, but to sum up there was no definitive proof that a consolidation would help or hinder a companies potential. It always came down to the actual Company and it's fundamentals. As for the CM release, @Motorheadbeany seems to be keeping an accurate timeline and the 10 week mark is almost upon us so looking forward to those results. Hope this helps settle a few nerves but that's the games we play in shares. Good luck with all holders and as always, not investment advice!

Cheers Micko