Strategic partnership with LG Energy Solution to deliver longterm funding for Kathleen Valley announcement is a great thing for us.
This was what I was waiting since Feb 2024.
I said on Post #:
72369037 on Feb.12 2024;
"It's highly probable that LG will open a credit to LTR or buy a stake in LTR." after I saw site visit of LG at that time.
I'll put that post down below. There are very important points and facts in it.
Guys and gals,
we are in a war with those shorters and that "Someone" whoever "it" is.
Just keep the faith in Tim Goyder and his team for now, as I said on my last post last week
Post #:
74515509;
I have 100% trust to Tim Goyder.
I am sure he is definitely doing his best for LTR shareholders.
These are all my opinions now;
I always felt that LTR was surrounded by shorter jackals which were connected and orchestrated by "Someone" IMO. That "Someone" was trying to push the stock price down to have LTR as cheap as possible.
I don't know who is that someone is
but it always looked to me that way that there was someone on LTR's way.
Yes the shorters knew something that they were still shorting LTR even at $1. They must be sure of what's going to happen, so kept shorting. The shorters were expecting LTR's $550m loan to be cancelled again as it happened to $760m loan probably by the help of "Someone". Then LTR would be in a very hard position when it started production without any working capital.
Then the Someone would put a very low ball offer which is now impossible.
Anyway lets forget about that "Someone" for now and have a look at LTR-LG Strategic partnership.
- I was always asking the management to make a cap raising for funding but not to go with bank loans. That is what happened now, and I'm extremely happy. Because the banks are reliable and could be manipulated in disadvantage of our company by the rivals or the people who want to buy our company cheap.
- US$ 250m (AU$379m) convertible notes loan at $1.80 is simply being a CAP RAISING AT $1.80. That was what I was telling on my Feb.12 post.
- It's not common that a company gets a convertible note loan at the double of its current price. That is very rare. That clearly shows that the true stock price value of LTR is even higher than $1.80.
- LG sees the value in LTR. See my Feb post to understand what LG wants to do in battery production and how much desperate for lithium.
- LTR will not need any more funding from now on.
- LTR retains Ford's $300m loan facility (which is already withdrawn plus now have $379m LG loan (Con. notes)
- These two loans make $679m
- $679m is greater than $550m loan which the banks would give us. Because if we would get $550m loan we would have to pay out Ford's loan. Now we don't have to do that. We will retain Ford's $300m loan.
What do we have in hand now?
Until the end of July we will spend $120m for finishing up the commissioning and getting the plant working in production.
Then we will have $381m in the bank as working capital which is great, and more than enough to wait for cashflow coming into bank from sales.
The production will ramp up, the spod concentrate will be built up, will be trucked to port and sent to offtake buyers. They have to buy because they have BINDING offtake agreements.
Just another note. I said this many times. We always said that we wouldn't sell LTR any less than $3. Now after this much stress and struggle I will not sell it at all. However I will listen to what Tim Goyder says when it happens as I told before.
We have no problem anymore,
No banks to deal with,
No "Someone" to fight with,
No obstacle on the way.
Lithium price will recover.
China can't make the lithium price any lower than this.
Not SC6 at least.
And this is OK for us for now.
Kathleen Valley on track for first production
We are ready to go;
We already have a huge stockpile of crushed, clean and sorted ore on the site.
Hundreds of thousands of ore..!
Our process plant is nearly finished; 99% completed.
This is the best part for me;
95MW Hybrid power station is in full operation.
All employees on site and ready to start operation.
That's why I said on my post on Feb.12;
"
My dear shorters..!
You may get burnt big this time.
It's not all under your control.
You can control banks, and some financial institutions but,
You can't control LG.
Hancock can't control LG either.
I would think twice and close my short positions if I were you.
Also.., my dear Hancock should think twice if they want to make an offer. We are not happy to sell at a cheap price because the market is low".
Now you can read my Post #:
72369037 on Feb.12 2024;
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I'm repeating; LTR has no problem.
It's the best lithium project in the world. High grade, low cost, long life, best jurisdiction, etc, etc.
All of the major companies in lithium supply chain know those facts
. I'm not sure if Hancock know that well, I hope they don't
. Anyway I don't care.
I'm not only researching the lithium projects, I am also researching the battery space and EV manufacturing and sales. The world will need huge amount of lithium in next 4-5 years and all those BS forecasts which show oversupply from 2024 to 2030 will be wrong. It will actually be the opposite; the supply will be more after 2030 I believe. However because the market dynamics will be more settled down at that time, the lithium price will not be less than the cost of it after 2030.
Therefore we will see big swings in lithium price starting very soon.
It's highly probable that LG will open a credit to LTR or buy a stake in LTR.
That's why I don't care if Hancock will make a bid or not
. If the bid is good enough we may sell our shares, if not then we will not sell and we are going to be in production very soon. I believe we will be around $4 ($10b mcap) in next 12 months.
I know LG has a lot of battery supply agreements with major automakers all around the world.
Also LG wants to overtake BYD and is targeting to be the next big battery maker in the world after CATL. SKI (Korea) has the same ambitions,
they also need a lot of lithium. The future capacities of LG's and SKI's battery gigafactory projects tell that to me
.
LG has done lithium hydroxide offtake agreements with Tianqi from its Kwinana plant in 2019 but that plant still can't produce
meaningful lithium hydroxide to supply its offtakers (including Northvolt/EU and SKI/Korea). Same for ALB's Kemerton plant. (that's why the market have had this low spod price problem; Greenbushes poured that spod to spot market stupidly, but now cutting the production)
LG also has done a lithium hydroxide agreement with Covelant lithium (WES/SQM JV - Mt Holland project) but the destiny of that project is still not clear. (Tesla has an agreement with Covelant Lithium and it's not clear too).
So, LG can't get the lithium hydroxide to feed its battery factory projects. Then now I believe they are trying to secure the spod concentrate from LTR.
LG already has 150kt spod concentrate agreement for 5 years (plus optional 5 year). But it needs much more than that now.
In the original plan LTR would mine 3mt ore to produce 500mt spod concentrate and 450kt of that was already sold to 3 offtakers (Tesla, LG and Ford). Only 50kt was open for sale to spot market.
Then LTR updated the project to 4mt ore to produce 600kt+ spod concentrate by bringing the underground mining to an early stage. Then LTR had 150kt+ free spod to sell out.
Then by the last project update the LTR management said that they will review to bring the ore production back to 3mt by delaying the U/G mining.
However they didn't said that that would be the case definitely. It was only a review.
Now I believe LG will fund LTR and LTR will go by the 4mt ore mining plan to produce 600kt spod concentrate, and then LG will get more spod concentrate from LTR, maybe another 100kt on top of 150kt
.
As a supportive fact to this opinion; as you know PLS is making with more and more offtake agreements with the Chinee lithium companies including Ganfeng which is already lithium miner.
My dear shorters..!
You may get burnt big this time.
It's not all under your control.
You can control banks, and some financial institutions but,
You can't control LG.
Hancock can't control LG either.
I would think twice and close my short positions if I were you.
Also.., my dear Hancock should think twice if they want to make an offer. We are not happy to sell at a cheap price because the market is low.
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ends here
(20min delay)