Contributing factors on the current SP of $0.008
The Marco economic climate of the lithium battery market is in a state of flux, with the decline and erosion of value to reflect lower company MC's that started early 2018, November 2020 is now showing very good signs of recovery here on the ASX.
As Tesla and the Global X Lithium & Battery Tech EFT hit all time highs over this last week, heavy weights in the likes of ALB, SQM, and LTHM have contributed significantly to the DOW by hitting 12 month highs is leading to a Lithium-ion battery recovery in the United States.
This change can be seen as a catalyst derived from the outcome of the US elections, with Joe Biden promising to re-enter the Paris Agreement accompanying the fact the US has the environment as a central piece to their economic recovery, with Trillions of US$ earmarked for the transition to EV transport and power storage.
As the contagion of the rise in the sector crosses international markets it will be good to have a look back to see where LPD fit's into the grand splendour and how it has reacted to the cycle.
For several years LPD has been a casualty to market forces, no doubt, all the while management making the best from the situation. Creating wealth where it could and continuing to make the company stronger against the oppositional market forces.
With LPD's creation in 2016 when Gary Johnson major shareholder/owner of the company became the Chairman, appointing Joe Walsh to be the managing director (prior to the hostile take-over attempt by stakeholder Lithium Australia) a plan to execute LPD's proprietary technology had begun to take shape.
Although the company has metamorphosed during this time many so called pundit's of LPD that are found throughout the HC LPD forums give little credence to the growth of LPD during this period. The growth manufactured by the BOD and most importantly, the management team which has been reduced to Joe Walsh and Shontel Norgate (curtailing wage expense's), as a sign of how nimble the company has become during this CoVid climate.
Some of the manufactured exploits include the hiring of counter hostile Take-Over adviser's Bacchus Capital Advisers which were instrumental in exchanging Strategic Partners, with GXY coming onboard.Changing areas in which ore bodies to develop, going from DSO type of arrangement with Alvarröes, to owning 80% of their own mine in Namibia. Changing location for the first P1 from Canada to Abu Dhabi has contributed to cost savings to the bottom line which has made LPD stronger on the world stage by seizing opportunities when they present.Yet these achievements are tossed aside to the drone of SOI leading to consolidation, BASF LOI expiring at the end of December or the imitate CR needed to fund the Con-Note by the 7th of December. Which is a figment of imagination created by the negative pundits, to fit their agenda.
With GXY and LPD having different paths to follow, on this up-ward cycle (of lowest interest rates this millennia) the lithium-ion battery future is exceptionally bright.
It is clear to many that with opportunities to buy on market GXY's stake will provide excellent returns, created from what has been accomplished from the BOD and management team.
LPD facilitating the companies IP with the funding for development of S-Max and more significant LoH-Max to unlock lithium hydroxide production from lepidolite and spodumene would have to be close to the top of the achievements but LPD's proprietary licensed technology producing valuable by-products deserve to be praised as this company has shown it's ability to actively engage with the Marco economic environment and achieve remarkable milestones that will take this company from Jr to multiple billion $ Major within the Long Run.Starting with a P1 having average free cash flow of US$49m.
Even the negative pundits having their agenda set, can see the value of this company, why else would they be here to counter the contrary of their agenda ?
I say, thank you GXY for being here while you have, and the best of luck to your future endeavours, I appreciate you getting onboard if only to stop Lithium Australia in their pathetic attempt of a hostile Take-Over.
Yet if you want to liquidate your holdings of LPD shares just sell at the price you can get for them on market, an be done with us. For hanging onto something you don't believe in is liken to wearing a ball and chain.
Just sell them and let our SP rise,
the MC of $40m will be a distant memory,
buyer's will wonder how LPD was capped so low,
we can tell them,
'cause GXY finally let us go.'
All the best,
LT-B1
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