Blue, thanks for your post. I am proud of this forum as we give you the light of day and welcome constructive review of the opinions of LTH's.
I broadly agree with your assessment also. Where we differ however is in the notion that we are brushed in the same colour as our peers. LTR was not lucky to get the take over offer. Other LIT companies were lucky that they could ride the piggy back off the rise in LTR from this offer. Why did ALB not make an offer for SYA, in their back yard, or PLS or some other emerging mine or brine deposit? There are 50-100 of them globally. They did so, because LTR stands head and shoulder above them. In resource quality, location, offtakes, management, non Chinese connection and ownership, there are no peers. ALB even made an offer knowing damn well that the tight register of LTR would give them little chance, but still went ahead.
I do agree with you that valuations predictions are lofty and while I think we get there, perhaps not at the speed some think. Production will ramp up over the first 12 months and I am sure that the SP will reflect this. Having said this, I still think that $4 around the end of this year is feasible and realistic. That is will hover around it, till this time next year is also expected by me. But once the market sees the quality of the spod, valuations and SP will move up rapidly IMO. With regards CAPEX and loans. LTR is not isolated and all mines are facing the same issues, regardless of the locations globally. Ford loan is $300m and we are $200-$300m short or so.
I don't see that as an issue as management, which by the way, has not set a foot wrong, is working on it. We have 150kt uncommitted spod, we have DSO options and FED and WA Governments starting to wake up and can also put their fingers in the tin for us too. No, Debt is not an issue and with the profitability this will quickly be paid off. You see the cash cow of PLS with 5.3 spod. Try LTR with 6.3% spod and the cash that will roll in. Anyway, thank you for your contribution. AIMO.
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