As I understand, the demonstration plant is 1,000tpa and now instead of expanding it as a first step to 3,000tpa, it will be expanded to 10,000tpa instead. Please correct me if I am wrong, the company announcements are not really clear imo.
I honestly think we are a bit over stretched Market Cap wise at the moment and I wouldn't be surprised to see it come back closer to 10c in the short term until there's major news (financing secured etc.)
Expanding to 40ktpa and then 100ktpa will see this company have a market cap in the billions but it will likely take a lot to get there. The capex is huge, especially for the 100ktpa expansion. They won't be able to finance it purely with offtake prepayments imo. Lucky if they can fund the 40ktpa with offtake prepayments. I think we'll need more bank financing and a large cap raise but that's my opinion. At least now the market cap is high to better justify raising the money themselves without diluting too much.
LMG Price at posting:
16.0¢ Sentiment: Buy Disclosure: Held
