Wow, what a doomsday atmosphere here!
Moin Moin,
I'm surprised that the discussion here is almost exclusively about the fact that there will be another CR, but not about the timing and the short-term sequence of partial call-off ATM/CR.
The CR announcement is admittedly surprising. I did not expect this, as money could be raised elsewhere via the ATM. Only a partial amount was used the day before yesterday.
This fact and the short sequence of announcements are unusual. The most reasonable and logical explanation is that the CR is a demand in the course of a deal with a new negotiating partner. In the course of the deal announcement with Glencore and the last CR that followed, there was also speculation as to whether this could be an element of the due diligence process. Not so far-fetched, in my opinion.For me, it is obvious that another interested party is insisting on similar conditions. Mind you, much larger purchase quantities of phase 2 are being negotiated here and there is a good chance of an export licence.
Nevertheless, this CR announcement initially feels like a punch in the gut. It is understandable that wild speculation is now breaking out about the size and value. The Galan board will not have taken this decision to CR lightly, with the known negative external perception.Although I do not know the personal financial circumstances of the board members, all of them have invested considerable sums in the company, above average for the existing risk profile. A CR with dilution is therefore also at the expense of the board members' own wallets.
At this point, let's just assume that all the ropes were to break and the worst-case scenario of an "emergency sale" of all assets would ultimately have to take place. These would be worth several 100 million US dollars in a bidding process.
A current event for your information:
Power Minerals (PNN) has just entered into a JV. The JV partner is a Chinese investment company that has received 60% of the "Rincon" project in Salta. In return, it will assume investment costs totalling USD 216 million for the DLE project. PNN published a PEA for 7 kpta LCE at the end of November 23.
Some important key points(compared to GLN):
- Resource: Total LCE (Measured & Indicated + Inferred): 0.29m (GLN: 8.6m)
- Mg/Li ratio (estimated): >8.0 (GLN <2.0 )
- NPV before tax: 0.5bn (10%) (GLN: 4.37 billion(8%) ((Phase 3 not included))
- average selling price Li2Co3 : US$ 27,600 (US$ 22.800 Li-Cl)
- OPEX: US$ 7,786 (US$ 3,510)
- Valuation/tn LCE: US$ 31 (US$ 8.5)
- Project status/development:
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I am very confident that we will receive an announcement in June with a new OT, perhaps also JV partner, with funding prepayment, subject to official export authorisation.To be clear right away: This is not investment advice, DYOR
Have a nive evening
Smith71
P.S. quick reminder to some here:GLN is not a one-owner company, it is a public company with a board that makes decisions. However, if someone here has had their wife stolen by a board member named JP, I at least understand the personal hostility, but it's still annoying.
(20min delay)