Ann: A$25m Capital Raise to Support Full Funding of HMW Phase 1, page-64

"But isn’t most of the money being spent on what will ultimately generate income…?"

Does "time in the market beats timing the market"? Not so sure in this case. Timing does matter — why not postpone construction until lithium prices recover, reducing the extreme extent of dilution etc? My guess is that, unfortunately, management expects lithium prices to remain low or even decline further, which is why they want to build now with all this short-term pain, leveraging retail SH. This isn't a good outlook then (since earnings might be low for a longer period, and this in the face of this dilution and potential future dilution to scale up to phases 2, 3, and 4).

In my view, the outlook appears quite grim. There are many decisions driven by necessity rather than opportunity (again thanks to the CCP!). However, if you look at other lithium developers, they face similar challenges — it's a macro issue as well. Just consider what’s happening with LTR, which was once the poster child of lithium developers. So, it's only fair to acknowledge that GLN is not alone; the entire lithium development sector is facing a tough environment. And tough is still a nice word here. So not sure if this all really generates "income" that compensates SHs.