GLN 7.69% 14.0¢ galan lithium limited

Mondy as you have stated before I don't see Galan having much of...

  1. 1 Posts.
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    Mondy as you have stated before I don't see Galan having much of a hand to play here other than cap raising the share price into the ground or halting construction and slowly bleeding out (which seems to be happening). Glencore has a "binding offtake" agreement which limits Galan's bargaining power for alternative funding. Furthermore, we still haven't received an export licence yet - which wasn't required for selling to Glencore.

    None of these "alternate funding options" that JP keeps teasing at seems remotely possible without:
    * The export licence and;
    * a bounce in lithium price and;
    * Having something to offer (phase 2 offtake)

    The price bounce is out of Galan's hands and they are passengers as much as we are - until this happens (if at all) I think we're going to struggle. Securing the export licence could be a positive tho.
    It is a great resource and if all the stars align this could yield very high returns but that possibility is seemingly diminishing week on week.
    Worst case park the bus and try to fetch whatever we can for the resource (I'm guessing a fair bit more than $80mil). To my knowledge, the liner shouldn't degrade being exposed other than needing to be cleaned back to a weldable surface when works resume, either way there's always going to be lost value when starting and stopping contractors. The only grey area for me is the consequences of leaving the brine in there for extended periods, I know userxyz had a crack at saying it's not the best but to what extent - I imagine having 3 ponds of concentrated brine ready to process would be worth something but is all that value lost if it sits there for too long?
    AIMO DYOR
 
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