Ann: European Investment Bank proposed EUR500m ($825m) financing, page-55

First 55 Last

Share
Profile

Follow
Crows

1,036 Posts.

55

26/02/24

20:33

Post #: 72606217
Share

Originally posted by iheartprofits ↑

you’ve done well completely ignoring my reply and just quoting another outdated piece of info.

that was close to 2.5 years ago, we are all aware that Vulcan like many many other startups paid for coverage, that’s a fact and no one here will dispute it. The fallout from that, the short seller report, the oncoming dilution…..we all know all of that… but absolutely keep bringing it up if it helps your means.

what also can’t be disputed is the continued and excellent progress the project has made and the positive position it now finds itself in. Potentially on the verge of full funding, regardless of a big equity investment, full funding none the less. The dilution imo is already priced in although it will no doubt take another hit when it’s announced as weak hands shake out and naysayers continue to naysay.

the thing is the EU, Germany, EIB and all the other institutions are on board, the demo plant could be a crazy straw in a strawberry shake but it wouldn’t matter, the importance of local Li supply and German energy/heat security will see this thing proceed.

Expand

Not to mention he fails to disclose these reports were made when the lithium price was on the up and there was a serious supply shortage.

Not even 6 months after those reports went out the then lithium price would’ve seen VUL’s profit on 24kT exceed $1.4B/yr. What has happened since then is one thing and one thing only; the lithium price took an absolute beating. Everything else that is within VUL’s control has been handled very well and progress has been stellar.

Yes, the lithium price fell so all the valuations research brokers made back then would now seem ludicrous but do we honestly think the price will stay this low indefinitely? I certainly do not believe so. Producers cannot produce lithium at a loss forever.

Even if this does take a couple years before production, everyone knows the market is forward looking and values (with risk priced in) companies accordingly. Once the finance aspect is locked away I feel this side of the market will start to really show its hand. For me personally that is the single biggest risk. Time will tell if Mr market agrees with my point of view.

VUL Price at posting: $2.33 Sentiment: Buy Disclosure: Held
17 Upvote

1 Great analysis

Reply