Optionality @Newbie-FM , optionalityIn the Bloor Capital...

Optionality @Newbie-FM , optionality

In the Bloor Capital interview KP said wrt to Ghana/Ewoyaa
"The DFS is done in Ghana. Most of the remaining spend there will wait for a permit which is a year away plus or minus."

There seems to be some idea that PLL has to write a check for US$70M now to Atlantic Lithium to pay for Ewoyaa. That is simply not true and reflects (mostly whats written elsewhere) a continued misunderstanding of how JV's work. The spend may well be chunky but its not all at once and its not right now. The waterfall in A11 presentation does illustrate the sources well.

The IRA DoE is DOMESTIC (i.e. on US soil). There are many other US Gov't programs (DFC) to assist both US Companies and Non-US companies on foreign soil (and Banksy has illustrated the mining operation (Balama Graphite) in Mozambique of Syrah Resources which was partially funded by the US Gov't. Syrah also has funding for its graphite refining plant (in Louisiana - Vidalia) from US DoE ATVM LPO.

Do you see the correlation ... Africa (foreign soil - DFC) based minerals exported to US (domestic) refining plant (DoE ATVM)

On the most recent PLL Earnings call ... which has been discussed in another thread .... KP specifically said the following, (my bolding):
"Our next development project is likely to be the Ewoyaa spodumene project in Ghana. The capital requirements for this project are modest, and we’ve commenced discussion with various government entities to assist with the process. As an example, the DFC, the Development Finance Corporation in Washington, has recently expressed its helping to fund critical minerals projects in Africa. And we believe Ewoyaa is a poster child for that process. More to come on that in2024."

And to be clear, the DFC has nothing to do with the IRA. It was enacted into legislation in 2018 via the BUILD Act (there was a predecessor organization) specifically "to better bring private capital to the developing world", and among its options is simply "Debt Financing" of direct loans and guaranties of up to $1 billion for tenors as long as 25 years, with specific programs targeting small and medium U.S. businesses (and PLL certainly qualifies here - but it is a loan not a handout so there is a process like any other loan). As a government organization, the DFC seeks to advance American foreign policy and American commercial competitiveness. The investments DFC mobilizes serve as stabilizing forces in developing countries around the world.


And while we are at it, in the same Bloor Capital interview
"We're not going to do a lot more now while we go through the partnering process. Partners might have their own points of view on things so we'll preserve capital there."
PLL simply isn't going to stump up $1B of capital. TLP will be another JV, with a partner and the US Gov't DoE ATVM LPO.