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8.2¢ alita resources limited

Ann: Suspension from Official Quotation, page-38

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Alvin2042

104 Posts.

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14/08/19

14:37

Post #: 39990768
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Originally posted by Petemate: ↑

We still have this up our sleeve.

"A review of its existing offtake arrangements with JBJLIL, which includes an interest-free prepayment
of US$8.8 million, repayments of which have been frozen until 2021"

At the current rate equals $13mill AUD which will help to keep us above the minimum $15mill cash balance.

"Temporary postponement of the construction of the fines circuit and other capital expenditure until the strategic review is completed and the additional production capacity is allocated to new offtake partners. In the interim, current production levels are expected to be maintained and the Company currently expects to supply the increased contractual demand for 2020 (including to the Hydroxide Joint Venture)."

Cutting expansion costs until strategic review is complete. In negotiations with New offtakers.

A more comprehensive exploration program to unlock the potential of the Bald Hill tenure in the medium to long term. In the interim, with the majority of infill drilling completed on the eastern and southern portions of the Inferred Mineral Resource, the exploration drilling program (as announced on 18 March 2019) will continue with extensional and exploratory programs with a reduced number
of drill rigs.

Exploration update due as of now perhaps offtakers would like to see this while negotiations are in play.

Diversification through more value-add activities for the premium Bald Hill Mine concentrate such as: production of lithium hydroxide or lithium carbonate under the Joint Venture, tolling or production of intermediate lithium products, and producing technical grade spodumene.

Could possibly see a receipt from value added
Converted hydroxide from 50.50 jv who's to say the last shipment was the sale of just spodumene?

A review of the longer-term capital management options to support Company’s longer-term
strategy, including a review of the Lithco Facility
Evaluation of other strategic investment options at the corporate or project level in the Bald Hill Mine with parties that take a longer term view on exposure to the Bald Hill Mine and the exceptional opportunities it provides through its extensive but underexplored tenure, high quality spodumene concentrates and the ability to scale up processing.

Alita has also received several inquiries for supply of limited tonnages (less than 20,000tpa) of premium low iron spodumene for the European ceramics industry. This product typically attracts higher prices than what
is paid by convertors for the battery cathode sector. The Company is conducting low cost trial test work on further upgrading the Bald Hill spodumene for the ceramics market.

Smaller shipments with higher margins would help with cashflow.

If we are able to work through these many options to cut costs and With a new offtaker offering prepayment plans for the remainder of the product i dont see how we are going under?

Cheers gltah

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I think you get the first part wrong. Prepayment is already made to Alita long ago, and the money used up. So should not take into consideration cash balance. The freezing will help cash flow.

A40 Price at posting: 8.2¢ Sentiment: Buy Disclosure: Held
1 Upvote

0 Great analysis

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