Day to day discussions on S/P, page-7247

In case you are not aware, big issues for Nemaska Lithium (NMX) revealed overnight. Note that they were the last non-producing Li project to receive finance in May 2018. They are build a mine and a Carb/Hydroxide plant. Finance rasised was CAD$1.1 bill, multiple finance stream and some really crappy terms. Based on ann from company, their budget has blown out by a further CAD$375 mill, a 34% increase on initial estimates, which IMO reflects a rushed / half-baked DFS, noting $200 mill already sunk into the project.

This is a big deal, and Mr/Mrs Market reacted accordingly, where their sp dropped from 55 cents to 30 cents on market open. They have 90 days in which to re-negotiate finance packages in order to keep project construction on schedule, and if unsuccessful, projected will be delayed, or worse, lenders may pull finance. Why would lenders pull finances, as we are all aware, spod prices have fallen of late, and the capex (current + additional = CAD1.475 bill) on a per tonne basis equates ~ CAD$43,000, based on 34ktpa of Carb/Hydrox. Higher risks for sure, but IMO, the risks were already high at $1.1 bill financing. 

If this and the weather events in South America doesn't kill the oversupply myth, I dont know what will. Lithium aint easy, but bodes well for Li prices and thus, existing producers, particularly hard rock to hydrox advantage.