KDR (ASX) Re KDR Chart

Originally posted by eshmun: ↑

More likely a pump IMO.

Term sheet on financing of $US110 million debt. “The term sheet covers the essential commercial elements of the arrangements and is subject to the parties entering into legally binding agreements, which the parties are targeting on or before 31 December 2018.”

Binding loan agreement only on first US$1.5 million tranche of working capital loan.

Essentially SQM have loaned KDR US$1.5 million to keep them going, the rest isn’t a legally binding agreement yet and is just pie in the sky still IMO.

Then you have a complex refinery plan that is not yet at a fully bankable and technically derisked stage yet and KDR needs to find US$300 million to fund its share and a off-take agreement that only covers 15% of nameplate production and is not binding until KDR can prove it can make lithium hydroxide to a level qualified for use by Mitsui customers.

Nothing tangible in all these announcements other than the US$1.5 million loan and the share price goes for a big run.........hmmmm

Good luck with that. I’m seeing a GBG situation developing here (ever increasing loans at project level secured by the project) except this project is more technically challenging than producing something relatively simple like a magnetite concentrate.

Lithium stocks were the only show in town and people are finding it hard to let go. A lot of new entrants were pulled into the market on the lithium and battery metals story and they obviously haven’t been badly enough burnt yet, some of the more experienced investors have actually made a lot of money and don’t mind trading the bounces on the way down.

There are many many projects that are technically and logistically complicated in the tech metal space, with accompanying small probability of success, but there will always be people who underestimate the risks and invest solely on the hype around the arguments of shortages of future supply of these metals. These arguments are simplistic and easy to understand, unlike the processes and costs for turning an innocuous rock into an active and acceptable battery material for people’s devices.

What’s more, even if this project is financially and technically feasible, I personally don’t want more dirty refineries built in my home town, we are smarter than this. We should be a power house in non-polluting industries like education, research, innovation, tourism etc etc, not a dumping ground for the world’s dirty industries. Esh

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Dirty industries?? Your town is booming only because of this instead of education, R&D, tourism etc.