Hey WB, there is higher risk throughout the sector (and has been), another small producer TUL, is having real challenges with its start up, trying to change its mine plan..... sigh. Labor issues are huge, and for better or worse, CAI is likely going to find it tough, as we all know, 40+ temp is not pleasant....
Very much agree with you, the MD has basically implied.... that the plant upgrade is now a dead duck. That is a huge concern and needs to better explained to the market, as its one of the reasons they raised capital recently. I must admit, I had not really thought too much about the hedge, but you are very much correct, a lower rate of ounces, means more in to the hedge, which... while not a bad price, is still below spot.
The lithium... hmmm.. I think IPOs are basically dead right now. ZNC just cancelled their spin off... no interest.
After today and TULs issues, I cannot put any more capital into developers/started producing in West Aust, just too much risk (as in, I already have too much,
) There are a few ASX producers that are not in West Aust, which don't have the same labor issues, and of course.... explorers, that is where I am focused, which will hopefully better spread out the risk.
In the end, CAIs debt is just a big issue, full stop. Which means the banks will play their games, and.... that means most likely, more dilution (even if Dave says no). Hopefully my pessimism proves over the top.
(20min delay)