pcaruso. Yes I agree. I don't entirely blame Ken but I do most certainly hold Neil Biddle and friends accountable. The time to begin talks was actually in late 2015 when there was absolute supply panic in the market. That's when AJM started and they are now finalized.
PLS were late to so many things thanks to NB, from permitting to opening discussions. I have read so much nonsense about the Chinese being desperate and PLS can name their own terms. That is absolutely NOT correct. Cr@p, garbage, nonsense !!! What the REAL Chinese players are doing is looking for concrete partners for the next two years. The has been's like Ruifu are looking for that quick opportunistic deal because they are the old school Chinese that came from the old SOE chemical companies. The real players are the battery companies and they are very articulate people. No fly by night deals just real working relationships.
They do not even commit to MOU's easily these days. I often hear people say MOU;s are worth nothing in China. If they are with a reputable company that is certainly not the case. They won't sign just for the heck of it because they know it may hamper a deal elsewhere as they are seen to be already in bed with someone.
The deal with Ruifu will almost certainly NOT go ahead imo. They not only have no money, but the whole DSO idea is totally untested. More opportunistic nonsense from Ruifu is my guess. Show me the money !! I have met with them and they do not impress at all. In fact would probably be my last choice. Concentrate is not IO as many imagine. There is a whole close to port infrastructure for IO that is not there for concentrate that I ever heard of.
The fact that KB struck a deal showed me that he did not have the contacts on the ground. Otherwise they would have advised him to steer clear of Ruifu. I took one look at the guy and 25 years of living and visiting China told me exactly what he was. That's the point that I exited although I may be back.
Michael's off-sider Thomas has many contacts and of course is Chinese. This can open a lot of doors. It doesn't matter if Michael, me or KB, you are reliant on local Chinese as a middle man unless you are fluent in technical Chinese which none of us are. I might be able to get around fine but I cannot discuss tech details. You rely heavily on that middle man and the guy PLS is using is obviously not connected at all. So, I see KB talking to Michael and Thomas as a big plus. Michael is a major holder so naturally has a vested interest whereas I do not.
TTM is quite correct. PLS need to get real things under their belt and I am sure that KB is trying to do just that. What the talk with Michael tells me is that maybe he's lost some of the ego that most of these miners seem to have. They need real agreements, real BOA's and with major battery companies. They have a big resource so naturally need a lot of off-take that is NOT needed right now. They need a partner in China that will grow with them, take a chance and sign the BOA's. I doubt anyone is under the illusion that debt financing (assuming they choose that) is going to be possible without it. I could write a book on how to get to the right people in China. Michael and Thomas have one way that is very effective and I have another. Michael is interested in talking to PLS and I'm not interested. That people could see Michael as a negative astounds me.
I would advise everyone to forget the nonsense. Lithium is not in desperate shortage right now. Deals are mutual and no PLS is not a must have resource right at this point. Forget the nonsense of we are waiting for the best deal. Total cr@p. Forget the prepayments and the price. They are hanging out for a better price? Yeah right. The price will be what the price is at the time.Welcome to the real world of mining where hard work, efficiency and relationships with China, (which is the ONLY market), are what will make PLS great one day.
Don't attack me. I have nothing to gain or lose and I'm just saying it like it is. I don't care if anyone thinks I'm trying to up-ramp, down-ramp or sideways ramp. It is what it is and PLS I feel has a long journey ahead. NB is trying to fix everything that was not done by NB and friends. He needs a break and he needs contacts.
PLS Price at posting:
49.0¢ Sentiment: Hold Disclosure: Not Held
(20min delay)