A few things here..
- Am I disappointed? Yup
- Am I surprised? Nope. We had a $56m USD delta in the capex, and the recent SPP was not for the capital for LLL. This was inevitable, I just didn't know if it would be on IPO or before. It was obviously required
- Am I surprised in context of last week's announcement? Nope. Alas, that's the ASX... you need to start fishing and drumming up interest and you legally cannot say you're after a cap raise unless you're releasing that at the same time. With the speculation, they had to put something out, and the key word was in there... no MANDATE. Shame though
What does it mean now? Have to see what the discount is. Two things are for certain:
1. It takes a crap load of cash to become the world's 3rd LARGEST LITHIUM PRODUCER. In a world of inflation, that is inescapable.
2. Management DID look out for the RETAILER in the order. I would be much more upset if they did a cap raise, then did the SPP at 77c and gave us 10% off there.
Think about that. We all had the chance to top up at 58c and most here did, by the sounds of it.
Instos are going to be topping up here at who knows what, but let's take AVZ as a benchmark - 22%, that would be 60c
So assumption is we got in cheaper, because of the order of play that management did this. I think the release last week to say NO MANDATE was to try to shake off the shackles of the big boys suppressing the price to get in cheaper. Alas, it didn't work
What does this mean for Feb/March? Nothing... we will still rocket.
What does this mean for faith in Mike? A little tainted for me, but I'm not running around my village with a pitchfork and a white sheet.
