Hey
@philliphotmail,
I think that the stock is at fair value at present for a number of reasons:
1) Lithium price and price outlook
2) Current economic climate - globally not just in lithium (covid)
3) Stock issue with regards to Tiehm’s buckwheat
lithium prices are in a downward pattern with excess supply still not yet absorbed. However many analysts are forcasting 2021 as the latest for bottoming out in lithium prices. Ive also seen that Tesla did quite well with EV sales in current June 2020 quarter considering covid. A large driver of the turn around will be keeping an eye on EV sales over the next 6-12months. If the demand for EVs continue then evenually they will need more raw materials for them.
covid 19 is plaguing the markets atm. Lots of small business in each country would be doing it tough. You also have tourism and hospitally globally basically taking a wrecking ball. This would obviously reduce peoples willingness to spend income. Especially when you may lose your job. The other side of it though would be that governments try to get expenditure flowing again by increasing subsidies which has happened in parts of the world but not everywhere.
As much as I love INR i think they have down played the buckwheat issue which is frustrating as an investor when your told by management in released announcements that it has not impacted on activity. While that might have been true as a retrospective comment I think its a rather large thorn in the side issue moving forward with permitting.
The US based off my understanding is a difficult location to get mines off the ground. Chuck in some environmentalists concerned with a species of plant in your mining area and it will likely give you a headache.
Management are doing the best they can in this area and I do hope that the environmental side see the light regarding this mine. Its kind of a “they lose the battle but win the war” should they let the mine go through. I say that based off the logic that id rather them let this mine go through than deal with continued traditional ICE vehicles being produced. The environmental impact of that is far greater than EVs and if anything the greens really should be pushing for this not against it. The transition into greener energy sources for transportation doesnt come without some cracked eggs along the way.
In regards to your last comment about INR as a do or die and if die whether or not they will be taken over. I feel that the finance of the project isnt so much an issue. Im confident management with the team that they have, already have a plan in place to get the project off the ground. But i dont think the finance will come to the table unless the permitting is issued. I think thats gonna be the big hurdle if INR becomes a success story.If the plant is listed as endangered and they arent allowed to move any of them. I think thats going to kill investor confidence and have finance running.
I am no expert at lithium mining, but I think given all these factors management would be better to ride out the storm as such and take baby steps. We have the resource, we need to get permitting right so focus on that. After that then worry about the finance, given lithium price atm in 6 months to 1 year the price after they get permitting might be more favourable to them anyway. Dont walk before you can crawl.....
INR has enormous stock price growth potential but this is going to hinge on if all the above gets resolved. Its a classic “risk it to get the biscuit” stock at the moment.
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