I understand the dissatisfaction that you are feeling, but try to understand that the context of this CR is different from the CR of the past, one was to get out of massive debt and the other is to expand growth. All we can do is wait and see what their rationale is, but think about it, its interesting that they have a debt facility with BNP Paribas (40 mil) from a major investment bank, and a CR.
Why?
Two reason
A. Not reporting something vital and they are in more debt (highly unlikely, considering that a major bank is lending them money on more favourable terms? Quite frankly, if they didn't have anything of value that bank would deny their loan and that would forced to get the so called death spiral financing? (This would be a potential concern, but do the numbers and the assets suggest that this is happening?)
B. Expansion purposes and needing the money now rather than wait 6 months to year on Mt. Cat flows, remember timing is key in this industry, so sometimes these moves need to be made to acquire money now. AT definitely had options, so there is more context to this than what it is being reported. (Eg. how negotiations were being made, and what AT decided to do as a result, prompted this CR....LAC jv shows how they had to share 50% of their project with SQM and 40% (Ganfeng and Thai Oil) of their company in order to get all their funding done (I mean so how much will they be generating in revenue when everything is said and done and how much are their shareholders going to actually make...over time on revenues you are losing a chunk to de-risk your company...Thesi look into these numbers and potential revenues and it might give you some clarity on the price of "de-risking" a project) So will that really allow him to realise the fully value if big companies are asking a huge price?
As for the CR, the amount will be crucial, and we have to wait till Wed to see what the plan is.
Stay strong, we may have some mini storms in the horizon, but the underlying fundamentals of lithium havent changed
--Tight supply due to underfunding of projects needed to develop a project (look at the number AT quoted in the recent presentation).
GXY Price at posting:
59.5¢ Sentiment: Buy Disclosure: Held
