Morgan Stanley Wrong on Lithium, page-50

Nice pickup at 22c, never thought we would see that price again!

We will be paid on the final product weight and testing as loaded in port. They won’t pay for a hypothetical tonnage until the product is loaded, final tonnage set and the paperwork has been finalised. It will go through once that is completed and then the ship can set sail. So yes when the ship leaves port for the first time, we have ticked another box.

I have a theory on the share price atm but is just that and is only my opinion but thought I might share.

The JRO issue is obviously leaving some investor‘s confidence waivering and the shorting is slowly going up but still quite low for a lithium stock compared to some in this market (<2%), so I think these two are only a part of the current price weakness.

I personally think Pala have been selling down to make it more difficult for JB to re-finance as he was keen to get that done asap, ie: last month. They would obviously want to keep the loan oustanding for as long as possible as the rates are excellent (as we know). So, on this theory I think JB wants to delay the ship to get a decent, high spec shipment away that tells prospective financiers this is worth a far better finance deal and carrys less risk compared to a couple of years ago. Ken mentioned banks are now talking to him over at PLS so just maybe JB has a plan and will accept the temporary carnage. Then he can re-negotiate if more funds are required for stage 2 after building a good credit rating with the new financiers.

Again, just this is just a theory but maybe food for thought.

Something has to change soon because we are dirt cheap at the moment and probably attracting further attention, again!