Raising debt is good for shareholders because of no dilution (no short term pain) provided we get a soft landing and company is able to service its loan from cashflows derived from reasonable pricing. But on the other hand, if we get a hard landing and lithium price dives again from demand destruction across the entire auto space, including EVs, then non-serviceability of loan due to insufficient margins amidst high operating costs from stagflation, could result in risk of default because banks/financiers are merciless, at which point I would agree that the Gina put would save the day.
The risk LTR faces is getting its loan to roll over and extend come 2025, the year we could see a recession.
Raising debt is good for shareholders because of no dilution (no...
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Last
$1.18 |
Change
-0.030(2.48%) |
Mkt cap ! $2.860B | |||
| Open | High | Low | Value | Volume |
| $1.23 | $1.24 | $1.17 | $16.16M | 13.57M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 10 | 142276 | $1.18 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.19 | 120868 | 2 |
View Market Depth
| Last trade - 16.10pm 06/06/2024 (20 minute delay) ? |
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Last
$1.19 |
Change
-0.030 ( 2.67 %) |
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| Open | High | Low | Volume | ||
| $1.23 | $1.24 | $1.17 | 3037920 | ||
| Last updated 15.59pm 06/06/2024 ? | |||||
| LTR (ASX) Chart |