Fortune teller
I felt compelled to post this after Joe Lowry's "
The Top Five Lithium Market Myths"
"The lithium market itself is a LONG way from oversupply or bubble territory. Hell, we are still waiting for somebody to actually invest significant capital in a new project in Argentina since the political and investment climate has turned favourable. Can you hear me GXY, LAC and LIX…..?"
2017 has been busy time for management and imo they are just getting started.
I predict the following
Dual listing on
Shenzhen or Shanghai # (purpose being to raise capital)
Straight after a 100m share capital raising @ $2.00 at a 10% discount
A move from 400m to 500m shares, 25% dilution.
AU$200m to fast track SDV, which should be enough to get the mine humming along in two-three years with Mt Cattlin cash flows and James Bay to follow shortly there after.
Prospectus
If this were to happen, I would urge management to consider a prospectus that allowed new and existing retail investors to participate with at least 50% of the issue . This would be a tough call for management as a prospectus is messy and takes a lot more time but I think the appetite worldwide for a solid, pure play lithium investment is there. Together with the dual listing, this would have the effect of limiting a takeover and the shorting of GXY. I do not think that the dual listing alone will do it. The latest Insto binge of shorting and accumulating will continue. The current trading is your typical Insto pump and dump, when retail can trade again they might give it a couple of hours before the push down and hold pattern continues.
The good, the bad
How would your average retail investor feel about a 2nd CR in one year? 3 fully owned mines, 100% of profit as dividends, no debt, 500m shares registered and no need to think about a CR or JV again. All done by 2020. I wouldn't mind as long as "Sophisticated investors" are pegged to an equal or smaller portion of the CR. IMO it would add more value to my share holdings then the actual cost of dilution. The only negative I can see is a 25% drop in the dividend per share but most of that would be sucked up by a JV @ SDV anyway. Maybe a share buy back in 2022?
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