Ann: Conference Attendance, page-11

First 11 Last

Share
Profile

Follow
dawgfather

9,285 Posts.

4666

10/03/24

20:24

Post #: 72834002
Share
Originally posted by WhatsTheTip: ↑

When you are a low cost operator and prices are above your cost of operation, operations generate cashflow (once fully commissioned).

There's basically three options for that cash flow.
Squander it on something useless. Unfortunately this is all too common
Make value adding investments
Pay dividends to shareholders

Yep, DMS only at the start. Get this working. Add Flotation after that, funded presumably from operational cash flow DMS generates once its working. If the DMS is working as intended, its bring in the cash flow to fund the capex for flotation. There may be no stumping up of cash from A11, PLL or MIIF. There is the forgoing of immediate or larger dividends as a flotation project and possibly other projects are implemented. These projects makes Atlantic even more profitable by improving recoveries and meaning all the lithium product produced is in the 5-6% range (well at least that's the plan).

Expand

Cheers for the info.

Reinvesting free cash into expanding production or making the mine more efficient is probably the way to go initially (as you say). The other play I'm invested in is planning similar - free cash flow reinvested for plant expansion. Lots of similarities between A11 and this other one.

I've never understood the fixation that many Li investors have (on other tickers) for demanding brand new producers provide dividends - It's basically impossible unless spod pricing is back up at something unsustainable like $4k/t or higher again.

SYA and CXO can't even turn a profit let alone pay a dividend. Even PLS cancelled theirs.
A11 Price at posting: 38.0¢ Sentiment: None Disclosure: Not Held
2 Upvote

0 Great analysis

Reply