Hey stonks, too true that the FID ultimately means dilution but...

Hey stonks, too true that the FID ultimately means dilution but there's no way through to production without some.

The last minute of this below video illuminates what we might expect when the FID is undertaken. We'll be looking at US$100m required to get to production, but that won't all necessarily be squeezed from the A$250m market cap in dilution (thank f*#%). No-one particularly wants to hear 'debt' in a credit market like this...but that's where Keith's comments are interesting. There will need to be a raise, but it will also be accompanied by the company taking on debt to partly finance that US$100m. Importantly, he states that any significant debt they take on, they'll naturally want to have offtakes already in place to cover that debt. Remember, this will only be when the U price is economic for LOT so will probably be north of $65. This could allow LOT to limit dilution. Don't forget, we already have mine infrastructure in place which would have an estimated cost of US$300m to build today - and take god-knows-how-long to get right.

This is why the above Corporate Presentation is trying to distance LOT from the general herd of developers, and compare us instead to the valuation metrics of Paladin and Boss, because when U supply starts to tighten and price goes up...upon FID we will be miles ahead of the pack with a shorter time to production and sales.