What is 'Liquidity'?
Liquidity describes the degree to which an asset or security can be quickly bought or sold in the market at stable prices. Cash is the most liquid asset.
So with that in mind, what are LITs liquid assets? Cash
Yes some ($6M Dec2016), but at a burn rate of $2-2.5M per quarter that is more like $4M now and by Q4 this year LIT will need to go to market to CR. https://lithium-au.com/wp-content/uploads/2017/03/1653890.pdf Securities
Anyone looking at current trends will notice the descending triangle forming at 12.5c support which if broken will not be good. See 24217401 by @shaneos. The basis of liquidity is that the security can be bought and sold without affecting the price. This is currently not the case. Partly paids
These are currently well out of the money and could hardly be referred to as liquid. Assets
Which one of the drilled prospects could be sold on market - None, because they havent been drilled.
Sileach results were not encouraging: 60-70% recovery with no operating cost or fixed flowsheet is not a marketable proposition. Not to mention the big question marks over fluoride/ HF.
LPD in comparison Cash
Has raised $3M, with the final $2M looking to be placed. A significantly lower cash burn. Securities
Trend is steady and held back by current TO. BDO Independent report determined LPD stock to display a high level of liquidity, with 62.90% of the respective company’s current issued capital being traded in a 90 day period, which demonstrated greater liquidity than LIT. http://www.lepidico.com/wp-content/uploads/2017/03/LPD-170328-Targets-Statement.pdf
Why else would LIT be looking to TO LPD. Its a no-brainer. But like the LIT partly paids, they are well out of the money and to quote AG will be waiting 63years for this to be successful.
LIT Price at posting:
13.0¢ Sentiment: Hold Disclosure: Not Held
