Ann: Quarterly Activities/Appendix 5B Cash Flow Report, page-92

@Learning_2B1

In4apenny expected project funding in 2024. I just interpreted that as anytime before or up until the end of that year all things being fair. That allowed for the entire year for full project finance to be delivered.

From the previous quarterly, the following information was of significance to me;

"These developments, coupled with the recent establishment of market quotes for lithium
mica concentrates have led Lepidico to consider an alternative, sequential (versus parallel)
development strategy, where the mine and concentrator are prioritised– selling lithium mica
concentrate to third parties – ahead of committing to the downstream chemical plant. This provides
for amuch lower initial funding need and a quicker path to free cash flow"

As for your other query, imo from the information in the report, the company has adopted the sequential approach for two reasons;

A) Convince and demonstrate free cash flow to a prospective lender in order to secure a loan for the mine or feeder.

OR

B) Reduce costs for the feeder through money accumulated from the stockpile contract and put towards the feeder.

Of course it is speculation, but LPD imo would not have to go down an alternative path if things were almost locked in with a blended finance deal. There would be no need to. Company in the previous quarterly report made it clear that funding from the new stockpile deal is to be prioritized towards the mine and feeder as shown above. Those are the companies words, and there is really no other party to demonstrate this free cash flow to except a lending body who could assist with the mine and feeder.

So can't really see any other reason from the information above as to why a sequential strategy is now in place.

Either of those reasons imo will still take considerable time (far longer than a year) to either demonstrate this cash flow/position or put enough towards the mine and feeder. This is still even conditional to a stockpile agreement taking place (supposedly this year) with respect to falling prices.

Of course there may be a left field blended finance deal that blows everyone out of the water and LPD still have hopes for their preferred form of funding, but realistically, given three years of no success that appears highly unlikely and thus the alternate path to be followed.

Definitely not involved in banking lol, but just a loyal holder trying to piece together the logic and direction of the company.

Hope that explains my thoughts on the query and happy for you to disagree, but as you can see i have interpreted and constructed this view from the information given in the quarterly reports.

Have been pretty close to the money in my predictions over the last couple of years re finance, so am happy to see where we are at by years end.

I will maintain that a stockpile contract and shipment by years end will be a realistic achievement for the company in these times.


GLTAH