If, remember IF, the company still exists and has gone up to 4Mt/a, AND has the offshore conversion facility up and running, AND the LCE price is higher than now because the "expert analysts" got the supply/demand numbers wrong, then in 3 years time this could easily be a Disallowed from here.
All those Ifs and ANDS are highly likely to actually happen, so that is what makes this company an excellent investment IMO.
Also IMO the most likely aspect to happen to stop us being a Disallowed is the company not existing because of a takeover at a far lower price.
OK ifs and ANDs are not FACTS, but there are no facts in regards the future. Everything is our own best guess. It is my best guess that there is nothing in the market with that type of return possible and a very low risk.
We have a resource that is getting widely known as the biggest and best available lithium resource on the market, that has now been mostly derisked, and still has $95M in the bank, another $17M to turn up shortly from GLC and hopefully another BOA with some upfront payments attached. Any debt needed for working capital early on will be a very small component of the entire operation.
If our other sales of around 175,000t of concentrate in 2018 end up being similar to those being reported for GXY (5.5%??) ($US800/t), and we just received 50% as up front, then we would be getting ~$93,000,000 from there!!
I would suggest that low iron, 6% is likely to get a higher price, and as all that cash covers the building of the plant, there is nothing to stop froward payments from 2019 to cover commissioning and extra contingencies, drilling etc.
All can be done without ANY borrowings at all.
I cannot think of a company that has been able to get their mine up and running without any borrowings, so the derisking we have here is unbelievable.
Then if any borrowings were needed, say for stage 2, then convertible notes to existing shareholders, as a possibility mentioned by Neil Biddle the other day sounds great to me!!
Just where are the risks??
Lithium is the answer to fossil fuels, and governments are waking up to it. The changes in the last 2 years are nothing short of breathtaking yet so many cannot see what is right in front of their eyes.
All IMO of course.
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