Well its all gone a bit doom and gloom, which is a bit understandable.
I find it hard to believe that the resource has fallen apart over night, though nothing ceases to surprise me, so never say never.
I’m not surprised if there is issues with the cash they have got through has far exceeded expectations in the current Oil price and high inflation environment. Thank god no debt if I’m honest with rising rates.
If cash out flow is the issue then I find it hard to believe that no one else had any idea on this. COO, CFO???
We also have 8 board meetings and 3 audit committee meetings and all of a sudden shock horror we’ve spent a lot more than anticipated?
A few positives, potential positives are:
LLL entitlements (around 28m shares) are not escrowed so potential emergency funds, mind you need to buy some time really as Li sector is still under pressure but will start to change in the next 3 - 6 months if revenue / profit at producers come good.
Ganfeng could be interested in these and would be peanuts for them. They have made a fortune helping PLS in the tough days. Don’t see an issue with FIRB here with small qty.
LLL Inspecie around 210m are in escrow. Again a rise in Li sentiment will see the value here increase. These shares are a floor to a degree for the SP. A take over target??
Not in escrow in this case. Picking up this qty at current prices is still a decent buy as long as the resource is not the issue.
ECOWAS meeting looks to be planned for this weekend. If positive this should give some tailwinds and may assist costs. This is a big anchor on both companies SP in my view.
POG at current levels (just under $1800 as typing) more likely to have upside than further downside IMO, though maybe not quite at the bottI’m.
TIME is the key, buy some time if costs are the issue rather than resource.
Many here will have ridden ups and downs on resource stocks, 2019 / 2020 at GXY and PLS for me were tough times, but came good. Key is not to be over exposed.
Personally I doubt trade Monday, in fact would be happy to drag out for a few weeks at least and let markets find a bottom and get past June US CPI and July fed meeting
