Good evening all.
So I had a chat with Sean Corbin today around some of the questions I've had, and i would like to cover them off for you as well. A friendly shout out to @
greenhawk, @
Neil1959 as well.
1) - Let us first address the question around the Top20 share holders, and increasing their share allocation to 50% the share registry.
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CONFIRMED, LWP are working with the top20 shareholders (currently holding ~35% the share registry) to increase their holdings to 50% the share registry. Specifically LWP are working with two investment firms at this point on achieving this as soon as practical.
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My own thoughts.... If people want to sell far below fair value (circa $0.014 - $0.017 in my book) then so be it. Makes it cheaper for the Top20 to increase their holdings.
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2) - Let us now address the role that EAS is going to play. Are they looking to actively market LWP?
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CONFIRMED, EAS will be taking a very active role in America to market LWP, and will also undertake marketing in Australia, although to a lesser extent. Siegfried will be meeting with EAS next week in America to further discuss this.
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My own thoughts.... We will be seeing big things EAS wise over the coming months, at this point they are getting everything together.
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3) - What about offtake agreements or customers?
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The conversation is happening. Sean mentioned that they were having discussions with companies around offtake agreements at the moment. As you can imagine, these discussions take time and LWP isn't in a position to comment further at this stage. Sean also mentioned that they were aiming to have their first customer ideally around Q2 FY16-17, perhaps Q3 FY16-17.
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My own thoughts.... To me it seems clear that behind the scenes these conversations are happening. The market is interested in what LWP have, and LWP have made official market communications that they have interest from countries around the world. To me it is now a question of
when - not
if. There is a lot happening in this space.
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4) - I brought up the operating cost and cash position of LWP, and discussed the 2+ year timeframe.
- Its worst case. Sean discussed with me that their current operational costs were higher then normal, and this was due to R&D still occurring (although close to complete), and the costs around the roadshows and investor conferences. The current level of spending will not continue at the current rate for 2 years, or even 1 year.
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My own thoughts.... I still of the opinion that LWPs operating costs are set for more than two years, only now I'm not just using my own calculations as a base to arrive at that conclusion.
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5) - But what about the loans? Are LWP looking at doing this again?
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NEVER AGAIN. Sean was quite clear that LWP are not in the business of loaning money, and they wont be doing it again. LWP are aware of the mistake, and have learned a hard lesson from it.
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My own thoughts.... We've beaten LWP up about this enough. They won't be doing it again and I'm happy to drop this. The important thing is they recognise the error. Let's move on and focus on the future guys
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6) - I broached the subject around investor and market communication, and what they are doing to improve on it.
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New Website. LWP are building a brand new website, which will take their company into the next stage of their development and growth. It will be designed to allow constant feedback and updates to the market in general, with photos, comments, stories, etc from things like roadshows, investor presentations etc. LWP will look to use this new platform to maintain the right flow of information to the market. LWP expect this website to be up and running in 4-6 weeks.
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My own thoughts.... Updating investors using ASX press releases on small things isn't the right vehicle. LWP will be addressing the lack of week-to-week and month-to-month feedback via this new website.
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7) - So feedback from the roadshows?
- Its good. LWP are getting good reception and are making contacts.
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My own thoughts.... Its clear that there is stuff going on behind the scenes that we aren't in a position to know just yet. When the new website is up and running we will have more commentary on this, but for now I'm happy to know that the roadshows are of good value. The more important questions will be for the investor presentations.
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Finally, I want to make that comment, that the company is energised and working hard.
Ttheir current key focuses are:
- Developing the India Plant
- Shoring up the share registry (top20 @ 50%)
- Completing R&D
- Obtaining offtake agreements
- Marketing and getting their product into the hands of potential customers
I want to thank Sean for taking the time to walk me through this (he reads HC when he can, is 100% up-to-date on what conversations are taking place).
Hope this helps the investors who have had questions on this
