I think this is the correct take unfortunately. Best case I see is that phase 2 permits are subject to additional due diligence which GLN has to advise the market that there are delays/more hoops to jump through, worst case we have our existing permit suspended/revoked until a successful government EIA can be performed. The 2nd option might sound bad, but I think I would be OK with it. It forces JP to stop the cash burn and they can focus on getting the export license and fully funding the project before continuing this build and hope folly.
The idea that Galan would be unimpacted seemed too good to be true when I read it. It won't be a good look after they only recently issued this statement:
"We wish to confirm that a recent ruling by the Court of Justice in the Province of Catamarca, Argentina will have no impact on Galan's Phase 1 project and no expected impact on our Phase 2 development plans at Hombre Muerto West. We are not located in the area under dispute and there is no river running close by to Hombre Muerto West, that could be affected by similar rulings in the future. We are confident that this is a localised issue which may potentially impact some other projects operating on the Hombre Muerto Salar but has no impact on Galan.”
Would have to be getting close to a 204d for me if this message turns out to be incorrect.
GLN Price at posting:
38.5¢ Sentiment: Hold Disclosure: Held
(20min delay)
