Dividends?, page-16

First 16 Last

Share
Profile

Follow
clivemax

3,409 Posts.

416

14/05/22

20:03

Post #: 61411279
Share

Originally posted by Egeria ↑

Thanks for clarifying. There is an old saying, equity is a cushion debt is a sword. Not suggesting ake impales itself on one but rather works towards a better capital structure leveraging the assets. I often find companies with too much cash become complacent, focus on costs dissapears, the leanest companies are those who have lived through a downturn so the learnings are there but need an incentive to stay that way.

Expedition of projects is what everyone wants but there is more ways to fund those than cash is all I'm saying. Get lenders to recognise the value of the assets and shift the risk to them not equity.

Cash at June should be pretty healthy, north of usd600m. At 30 march 22 it was usd421m plus usd70m received in April for a march shipment.

Personally I think that is too much cash to sit on, if it isn't in a term deposit it is on call. I'd rather it sits in my bank account but to each their own. Beyond that, the cash flow from operations should be sufficient to fund ongoing capex assuming pricing remains supportive.

Buying an asset now is an option but likely an expensive one.

I'd really like to see ake build a naraha type plant in Germany/Europe and North America be it alone or in partnership with one of the OEM'S. Expand its footprint where we are seeing the highest EV growth. It has an inherently lower co2 footprint vs spodumene producers so I see that as a logical next step. Again that can be done via debt in a jv type structure, leveraging the strength and credit quality of the oem jv partner. Food for thought.

Aimo

Expand

Another option maybe that AKE does a buyback of AKE shares!?

This could be done coincidentally, whenever any shorts rear their heads!
(Timing!)

That might suit almost all the stakeholders!

This is not advice
Do Your Own Research

AKE Price at posting: $11.10 Sentiment: Buy Disclosure: Held
18 Upvote

0 Great analysis

Reply

Top Stories

CC9

Chariot locks in high-potential drill target at Black Mountain, one of the USA's largest lithium landholdings

TRE

Toubani raises $10M to see Mali's Koubada Gold Project through to DFS

The Rising Tide: How institutional adoption is shaping the future of crypto

SVL

Silver Mines pushing ahead with NSW Bowdens project despite green group setback over power lines

HIQ

Mouthguard concussion sensor tech developer HIT IQ wins second US patent