Cash balance in this economic/lithium price environment one of...

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573 Posts.

328

13/12/23

10:39

Post #: 71420749
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Originally posted by cmonaussie: ↑

Definitely hoping (which is about how I feel about PAM presently ... it's in "hopium mode") but delivery track record is ... not good.

A couple of items concern me ...
1. Cash balance and Anadara ... This is from the Sep Qtrly (is that a typo on the bottom line re committed capital 30 June 2023?

These placement funds are critical to PAM as they note

2. The problem with PAM is not its potential - its full of that (and other stuff too which one has to carefully filter out), the problem is capital. The Anadara funding is material .... and I mean material in the legal sense. It's truly material if not received as it would not fund the company through to completion of committed Thailand ops (amongst other things) and its also material if it has been received as it removes an uncertainty regarding funding which would support the SP.

3. Well its back to cash available then isn't it. The Dec Qtrly will (again) show a low cash balance and the claim of "PAM is in a position to reduce expenditure without affecting progress on its projects" will be tested ... thinking maybe the markets is predicting this ... and a recapitalization???

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Cash balance in this economic/lithium price environment one of my main concerns. PAM were exploring funding agreements with Thailand IRPC and cornerstone/funding for Tata Atacama Projects for early 2024 which would help if successful. This is based on plans shared during the October cap raise. I'm quite interested in PAM's plans for getting additional capital and we can be sure Paul is working on something especially after investing so much of his own money this year.

Reducing expenditure without affecting progress on its projects is questionable. The main expense they can easily turn up or down is drilling for Chile projects and BIT in Thailand which slows those projects down. It will not impact RK Thailand which is progressing towards its PFS and mining licenses, or VinES negotiations.

PAM Price at posting: 13.0¢ Sentiment: Buy Disclosure: Held
3 Upvote

0 Great analysis

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