Positive Trader - I don't think AJM will have any trouble finding another off-take partner. Timing is an issue.
But these things take time, and in the interim, there may be a buying opportunity for the risk averse.
I don't see any problems for AJM in the longer term, however I do see some short to mid term potential issues, including repayment of a 15% loan when they should have been able to acquire finance at 10% or less like Namaska Lithium.
If they are good money managers, then they will attempt to pay out significant portions of the 15% loan while the Lithium price is high, otherwise they will experience problems. I think they are good managers.
It's going to be very interesting to watch how all of these elements play out, especially the timing overlap of each.
One thing they preferably do want to avoid, is having such high unsustainable debt that requires them to sell off part of the business. If the Lithium price collapses, they are in trouble, and they must surely know they have a limited window of opportunity with regard to time constraints.
In a company corporate, and personal investor sense, it's all about risk.
It's all very interesting. What we should do however, is look at all these developments as objectively as possible, because looking at AJM through rose coloured glasses does no-one any good, especially the mum and dad investors who pay little heed to ratios of risk, or have little experience in the market.
AJM should be ok longer term, but I see some short term headwinds on a number of fronts. I'm just honestly calling it as I see things today, and for the immediate future. I do think it will fall into the mid to low 20 cent range, but that is just my wild estimation, and my wild estimations have been spectacularly wrong in the past, so here's hoping its another misjudgement of mine.
For AJM though, for the immediate future, it's all about payments arriving on time in the bank account, from whoever they come.
Gw
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