Hi, Pie-O-My. An interesting and carefully thought out scenario you pose. It does however, remind me of what was happening over in LNG. It was analysed ad nauseum, but we were not on the same page as the board therefore it was of academic interest only. We had a company that had a TO offer worth about $100M one day, Covid19 appeared the next, financiers baulked (don't really know why) and refused funding, insolvency followed in about two months and then into administration. Administrators raised enough money to probably cover creditors and themselves. The remainder of the company is now virtually worthless. And we have very little debt. I am sure we have done our money. It was a speculative stock with loads of potential, but it relied for its existence, purely on capital raising, and it ran out. I you want to see a company die a slow painful death pop over to the LNG forums and look for parallels.
We are hoping that tomorrow will reveal some major proposal. If the proposed announcement is as technical and ground shaking as we hope, I would not be surprised if the halt was extended in order to finalise details.
Your statement "Unless Jeanne Johns and the board ofIncitec Pivot can pull a rabbit out of the hat, the closer that LCK get toproduction, their business is sadly, dying a slow death." probably says it all. But I just cant see it happening. Its reported that IPL will want over $1M dollars for their fertiliser plant, and that's a lot of brass for a start-up company to raise. At this early stage, I cannot see what LCK has got take to the table.I will keep an eye on the share price of my IPL shares. If our directors can achieve this we should erect a statue in their honour.
I am going to ramble on a bit, so please indulge me. Lets look at the present state of LCK if it all comes unstuck, which I hope does not happen.
1 It is a speculative company, produces nothing, and depends on cap raising for its existence. - That cannot go on forever.
2 Assets:
JV with China. As yet no evidence of it being signed off. Great potential, current value zero.
Farm-in in Queensland. Great potential, questionable value.
Property, plant and equipment - $372187.00. That won't be worth much when the auctioneers get at it.
Exploration and evaluation - $26226518.00. Well, how do you sell that?
Hiring out intellectual property to South Africa. Great potential, current value zero.
Carbon neutral by 2030 due to production of urea. Dream at the moment.
Money in the bank at end of quarter (30 June 2020) - $3,842,000.00 +$4,000,000.00 CR.
3 Liabilities
Debts - $1,091,030.
We cannot Cap Raise ad infinitum. This company is balanced on a knife edge, it has so much potential and must not be allowed to fail or our shares will be worthless . For me it is a TO, JV or an all out effort to produce gas and get customers. The rest should follow. Just a few thoughts. PS - at least Phillip Stavely is showing confidence in the company. J L.
.... There's been plenty of time to prepare...
(20min delay)