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Heeman

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14/04/17

15:50

Post #: 24076920
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Originally posted by Haplo ↑

Joe Lowry article that was recently published.

Lithium: Taking Stock of Q1, 2017

His notes on financing of lithium projects are worth reviewing.

Of world class projects, only the SQM/LAC JV developing the Cauchari project in Argentina has both a clear path to production and the financing to execute. At their recent investor day, ALB upped their demand forecast – showing a 2021 number of ~370K MT and they did it just a month after I posted my very similar number on Linked In – but I digress. The point is needed projects like Galaxy’s Sal de Vida and those of PLS and Altura are not financed. Despite the near term oversupply predicted by several banks, the reality is a continued tight market or full blown shortage is much more likely than oversupply.

So even though the spectra of a CR has been discussed in this thread, it should be highlighted that at this point in TAW's development it should be welcomed and not feared.

At most TAW/AMAL will need to raise $40 - $50M (2Mtpa) for the pre-production construction phase and that's not taking into account what they will be able to received in prepayments for offtake agreements. So a CR to achieve obtain any shortfall in funding will derisk this project even further and provide a clear path to production.

Personally I think they will receive at least half of that in prepayment offtake agreements which will leave roughly $25M to raise. Hardly a show stopper figure to raise for a company to be in production before the end of the year.

Haplo

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Will be keen to see the two going about their respective capital raises....oh i wish they would just merge already

TAW Price at posting: 26.5¢ Sentiment: Buy Disclosure: Held
2 Upvote

0 Great analysis

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AMAL announcements and articles, page-8

Top Stories

Larvotto identifies new exploration target at NSW's Hillgrove, boosting shares by nearly 20%

Recce's R327 found effective against E.coli during clinical trial

Wealth Within weighs in on shock 4% inflation read – and stocks that could survive the gloom

ChemX Materials kicks off first stage works at WA high purity alumina pilot

Ava Risk Group expands US presence with A$0.7M Substation Deal

Sun Silver gets that drill to thrill feeling from high grade hits at Maverick Spring

Microcap Wrap: 5 explorers with news out today

Week 26 Wrap: Cerberus of inflation barks – rents, electricity & fuel – and world watches two elders bicker

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Lithium Universe (ASX:LU7) board visits Quebec to engage key stakeholders

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