The reality is they only had 3 months or so left when spending $4m or so per month on drilling and operations, and the strategy changed to add more drill rigs asap once the size and quality of TA1 became apparent.
Comments in the most recent preso said something like, “I can’t say too much but TA2 is shaping up to be very similar to TA1.”
Tony said a few weeks ago that the they wouldn’t be adding more rigs to their program, with the aim of drilling as much as they can this year and into the end of next, unless they were supremely confident in what they are sitting on, or words to that effect.
So 100% I think the upcoming results of TA2 will be stellar, and over time, maybe surpass TA1, which itself seems to be sprawling sideways (unexpectedly?) north west looking at the latest drill holes.
The raise timing was prudent. Strike both while the iron is hot, and also, so you aren’t sold down as your remaining funds dwindle to dangerous levels.
Adding more rigs means spending $6m-$7m per month at a guess now, so $130m or thereabouts we have in the kitty, will comfortably see us to the end of 2024 and beyond.
The fact we may be sold before then is my biggest worry, not the geology. Albermarle are on the acquisition trail, SQM have already thrown us a lowball offer, RIO Tinto are known to be wanting into lithium (and have a mine south of us and a railway line which runs through our tenements), Gina Rinehart is sticking her fingers into the LTR pie, and PLS are a stone’s throw away and have close to $4bn burning a hole in their pockets.
If it comes to an outright sale instead of production, I’d be very disappointed if it was sold for under $5bn (assuming 300MT MRE is announced in Q1, 2024). SQM are the obvious suitor and it would only effectively cost them $4bn if the above eventuates drill bit wise. I’m not sure if SQM would be “allowed” to buy us out though with current legislation, so it might be one of the above Aussie miners more likely, or someone else like Wesfarmers.
However the next 6-12 months pans out, I have complete trust in Mark Creasy and Tony Rovira to see us shareholders right. Part of the reason we have accelerated the drilling program is to get the MC much higher so we’re not “compelled to sell” at a value underneath true.
Or I could be talking cack, the geology doesn’t continue throughout Andover and TA2 and TA3 are known dusters, hence allocating the bulk of the latest raise into drilling them all out and getting them JORC’d! Lol.
I have faith the first TA2 results will be excellent and I’m looking forward to seeing them.
Have a great weekend everyone (except hotstuff who I’ve put on ignore for trolling)!
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