Posters (Invesrtors?) ... do you really understand what you have...

Posters (Invesrtors?) ... do you really understand what you have invested in?

PL has given y'all some insight into how he approaches "opportunity". He is a finance guy - more specifically he was a former options trader and as he so matter-of-factly put it in the interview:
"I’m an ex-option trader and I believe in option value and a sound business is always creating options. Options are cheap, so if anyone knows anything about options, a call option over something in the future can be very cheap but very lucrative."

The assets on our balance sheet are OPTIONS and ergo are "cheap" which means our NAV is low and so is our market valuation is low because little of no value is being ascribed to the option NOW, but this can change and can change quickly ... Paul knows the value of option (both financially and for the business itself).

Now what does Paul control that changes the value of his options? Our assets as "potentially developable lithium prospects". Paul neither has the capital nor the technical expertise to monetize the company's options. Without that they will "expire worthless". So what has he done?

1. He has found a partner (IRPC) with a strong balance sheet (and which is further linked to a Oil industry giant (more on that later) and then Thai Gov't) and with the technical knowhow in chemical processing.

2. He has found a partner (VinES) part of VinGroup (largest conglomerate in Vietnam) to somehow further capitalize on the demand for lithium in SEA. I don't profess to understand this part of the PAM strategy ... other than it leads to a LiOH refinery that processes spodumene concentrate from most likely DLI's Mt Ida project in WA. PAM does not have the capital for this project ... even though its like to cost only US$300M - a fraction of what has been spent on WA LiOH refineries.

3. He has found further opportunity in Chile with the possibility of a home run on the first pitch (Hilux) plus some really interesting Brine prospects. There will be multiple partner opportunites here also. I've said it before on just the Hilux clay prospect ... if that proves up then it might be a very simple process to quickly getting Lithium Carbonate production and if you look at the financials of say LAC Thacker Pass in Nevada (the geology is different clay) then its astonishing what GM contributed as equity and the OTA they secured. This part of the story has only just had pen put to paper.

Sure, there are catalysts to be had from an expanded MRE for RKLP. Yes a DFS for Vietnam LiOH may also be a catalyst (but I can't say why ... that's a financial transaction ... PAM has no capital or other asset to contribute ... but there must be a pony in there somewhere else why are we there?)

IRPC is the key to Thailand Lithium Chemical ... now this is where is gets interesting though ... RKLP is a lepidolite mine project. The output from the mine is not a "spodumene concentrate" ... so the refining chemistry is different and the refined output is Lithium Carbonate. I was surprised to hear Paul say that RKLP is not a serial mine - concentrate - refine (carbonate) - process (CAM) so I need to understand that better.

"the idea is that we've got two pathways to early cash flow – the mine and the conversion facility, they're not it, doesn't have to be serial - it doesn't have to be one then the other. It can be either way around whichever looks better to start with think you get us the cash flow earlier. These are the sorts of discussions we're having."

I see that project is going to be key to producing CAM that the Gigafactories and EV manufacturers will need. What I can't see is Thailand importing concentrated Lepidolite from China to feed the refinery before RKLP produces lepidolite concentrate.

I see PAM as highly speculative with asymmetric risk-reward. It's possible PAM moves toward a more conventional valuation based on MRE once the development option is better understood but at the moment they are being valued as "options", very cheap options that may potentially pay off big.

Sure PAM is about as good at meeting timelines and market expectations (of their own making) as many others (e.g. SYA for instance). The MRE will come when its ready. The DFS will come when its ready .... and so what ... look how many lithium projects have DFS's out and years have past and still no development.

Know what you have bought into.