The fudge factor you refer to BL could well be the forecast HPMSM sales price of US$3,170 (off memory). This is close to three times the current price. I appreciate demand for EV's is forecast to increase rapidly over the coming years which will put upward pressure on this price but for mine there is a significant risk demand for EV's might be slower than originally forecast (especially if there is a world wide recession).
I also really like this project (story) and want to see it work but would like to see more evidence of the existing business working before buying a position. I have seen way too many resource companies develop new stages to projects, before getting their house in order on the initial stage. It's like throwing fuel on a fire, especially if the next stage also proves to be unviable. I will say this has to be weighed up against first mover advantage which E25 clearly has right now (case in point the recent deals done) so I appreciate management are in a tricky position.
I look forward to seeing the next quarterly report for clues as to where they are at. Another break even or cash flow positive quarter would certainly be a step in the right direction.
E25 Price at posting:
55.5¢ Sentiment: None Disclosure: Not Held
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