General Discussion Banter GLN, page-15510

i understand your frustration with the current situation and share some of your points. the mgmt made it clear in the last two interviews that they had an export permit. only when howard asked explicitly did jp have to admit that they only had a promise to issue an export permit. the confusion surrounding the export permit is just an example of a marketing situation that is not advantageous. mgmt constantly emphasizes that the market wouldn't understand the chloride strategy - okay, then the mgmt should explain this strategy to the market. it is indeed outstanding and could be an undeniable advantage due to the low impurities and the potential of hmw. i often read comments here from obvious owners who don't even understand the benefits of chloride (or how gln's liquid chloride could be a game changer).

as i have already stated, the real magic only starts properly from stage 2 onwards. on surface, this has to do with the higher annual production and the presumably lower opex as a result. higher production volume = larger circle of interested parties. lower opex = higher margins. with higher margins, the company is well positioned for future price fluctuations in lithium prices. please note that low opex (which is at the lower end of opex in this sector) are so far only estimates from economic studies. in the past we have seen significant price increases in all opex across this sector compared to former studies.

my current assumption is, based on the time since the announcement of the offtake agreement with glencore, that one of the two parties wants to withdraw from this agreement. i believe mgmt 100% when they say that they have a lot of interest from china. the chinese own over 80% of downstream production and have insiders who know the industry very well. presumably (just my opinion) the chinese are just waiting for the export permit and the permit for stage 2.

let's talk about the magic of gln's liquid chloride - liquid chloride can not only be used for lfp batteries. it is also ideal for taking the production of other brine (carbonate) companies to a new level. take the carbonate production in olaroz (formerly orocobre/allkem) as an example. it took over 5y to reach the annual production rate published in the studies. to date, the ratio of battery grade / technical grade is ~50/50. it took a long time for those responsible to optimize the subsequent processing steps (of the brine) so that they could fulfill their predictions. you now ask what does this have to do with gln? on the way to lithium carbonate, liquid lithium chloride arises relatively at the beginning of the evaporation process. the impurities at this stage influences the next steps. to improve the quality of the feedstock, it is possible to mix the liquid lithium chloride to dilute the impurities and increase the quality/production rate. i kept this step simplified. in reality, this is a chemical process which requires attention and extensive knowledge about the actual chemical composition of both liquid lithium chloride brines. technically it's possible. i have to point out at that 100% of the carbonate price for this route is not cost effective for a costumer. in this case, i think the ~72% mentioned in the studies is more realistic. this was probably the most likely case of a purchase of gln's liquid chloride. for the chinese market i would expect a price increase that would be significantly closer to the carbonate price. this is largely based on the assumption that the liquid lithium chloride in china can be used primarily for the production of lfp cells (as dj mentioned in his interview).

what can i finally say?everyone should be aware that this is a highly speculative investment. i will continue to hold. this is my own decision. don't use this as an example and always do your own research. in my opinion, galan offers great potential due to the resource, the low impurities of the lithium chloride, the potential of hmw (gradual expansion) and stage two (export approval required in order to achieve higher margins). i will simply continue to follow the development of the company and see this investment as a long term opportunity. i have complete confidence in the mgmt.