Hi folks,Some thoughts to share:Quality of comms aside, I think...

Hi folks,

Some thoughts to share:

Quality of comms aside, I think these past two announcements are positive developments, if we assume we are headed to production as JP has stated:

1. JC and CP, being the “new leaders of the technical team” are clearly shaking things up for the better by delaying DFS to deliver a stronger DFS and Production Plan across multiple stages.
2. Clearer staging of delivery across four stages (with a stage 4 throughput target of 60ktpa)
3. Stage 1 DFS delivery in a few weeks as they continue working towards the original goal of initial production by 2025.

Timing of stage 1 is interesting IMO. It’s almost “Galan Lite” in a way. By end Q2, assuming all goes to plan, we’re looking at a DFS for 4ktpa and domestic permits granted. Add an off-take / pre-payment into the mix (more thoughts on this below) and holders are looking at a very interesting proposition.

More broadly, general sentiment in the Lithium sector appears to be turning positive with (hopefully) the bottom for China spot. Also, US/Argentina Lithium negotiations seem to be ongoing, showing Argentina is clearly taking a different approach to Chile. This would be a catalyst to attract more investment into Argentinian Li players if it comes to fruition. Argentinas provincial vs federal power split also provides some insulation from any result in October’s election that might be seen to undermine Lithium mining (excuse the pun!).

JP and team have proven to be good cash managers to date, and will be keeping an eye on the bank accounts, as the cash pile looks to be heading for $20M end Q2, and they’ll want to get moving on the construction right away. Funding is surely top of mind.

From memory, initial pond fill was several months ago (I thought I read that somewhere here, correct me if I’m wrong guys!) so it should be producing samples pretty soon? I would expect potential off-taker(s) would be analysing these and so you’d have to think an off-take / prepayment isn’t a million miles away.

JP has remained pretty tight-lipped in his presentations, but with DJ buying on-market at $1.20 not so long ago, and two top-tier ex-SQM guys coming on board, I get the feeling something positive is brewing.

Not investment advice. All IMO, DYOR.

GLTAH