Hi Folks......another great day for SYA. One which was pretty much expected.......some more to go I would think. Still targeting the .20 cent mark by EOM. Have enjoyed reading all your excited posts....
The update to shareholders has quite a bit to offer on things. Our board , Directors and Adviser's really quite clever U know. This has been one of the most clever.....financially engineered movements in an SP I have seen for quite some time....with not even a 'Please Explain ' from Pauline down at the ASX. They knew exactly where they wanted the share price to get to and why. Some of the why is still yet to come. But it is no coincidence that the share price got to 10.2 and then. This makes us far more marketable to Partners....be they ' Offtake ' or Processing Related. Obviously I believe both.....but am still of the opinion that the latter is what is being cleverly manoeuvred ATM. Mainly because of this statement from the Independent valuation of 20th Dec 2017 : - ( previously sent )
" Downstream processing: A positive conceptual study was completed investigating the production of the value add products of lithium carbonate and/or lithium hydroxide, taking advantage of Quebec’s world class infrastructure, cheap power and skilled workforce; there is also the opportunity to team up with other potential spodumene concentrate producers to build an expanded plant to take advantage of economies of scale. "
I think it is also interesting and clever that Nemaska Lithium & North American Lithium were brought up in the paragraph today re: the consulting engineers doing work on their respective Pfs & Dfs . I would bank top dollar that they have had some albeit third party discussions regarding possible cooperation with respect to joint resources & processing. If they haven't ....they have surely thought about it as shown in the above statement. Most important thing with this is that we are seen to be ' equals ' in some or several respects. I mentioned in one of my posts in December that the 3 D illustration of the preliminary upgrade PFS based on early drilling looked like the resource could at least potentially DOUBLE in size across all categories. IMO it will and this is what this extended drilling campaign is all about. All of a sudden we are looking at very similar total defined resources to both Quebec Lithium and Nemaska. O.K with Nemaska , their grades are considerably higher....with Quebec's at par with ours. Nevertheless this area is proven in its lithium geology for over 60 years. So , I reckon they ( our Board ) and certain market participants already have a fair idea of what this drilling upgrade is going to look like.
So ....I reckon our GUY's ( SYA Board & Advisors ) are pretty good poker players . If we prove up the resource to ' Equals ' status .....together with the fact that we can easily raise the necessary capital ( min 50 million for plant ) right now at our current SP ....and which is what Nemaska raised last June for its plant - 6 mths + ahead - so timeline is proven out. That could put us in an immediate favorable position to open talks with either of the two other companies. In that scenario it is my opinion that 25 - 35 million would more than likely get us a near equal JV with plant with either party.....and we would achieve both first market mover advantages as well as critical market mass necessary IMO to secure a long term future in this space. Keep in mind Nemaska's current MC is some 828 million CAD.
So let me illustrate another way lets assume a few of our competitors got together for a friendly poker game at the
Casino de
Montréal . Invitation only & TAW wasn't invited for obvious reasons ..... so attending in no specific order is Nemaska Lithium, Quebec Lithium , Galaxy Lithium , Sayona Mining , and Critical Elements. Behind Nemaska is Ressources Québec (RQ), with North American Lithium overseeing behind Quebec Lithium. Standing behind GXY is LPD who is also trying very hard
to have a look over everyone's shoulder to see what's up. And behind us is AJM & MIM's metals.....just in case we need to up the resource ante and or provide additional security via cash. So the hand begins.....and after taking our first draw of 3 cards each......Critical Elements bids a small amount of cash, Nemaska ups the ante with some patents of their own, and Quebec Lithium matches & ups with increase in resources and plant capacity, GXY tries to bluff with its larger market cap and ups again ( LPD smirking in behind ). After the first hand ....Critical Elements has a straight, GXY has a flush , Nemaska has a straight flush, Quebec has four of a kind, and SYA has a Full House Aces over 9's. We draw 2 on our first draw ......Critical Elements Folds, Galaxy folds ( due to LPD not giving it away ), Ante's are subsequently upped with more resources and money splashing everywhere. Finally with everything on the line and Quebec & Nemaska holding .....SYA takes its final draw of 3 .....and ends up taking the pot with a ' Royal Flush ' . Door then opens with absolute silence ....then a loud cough as if there was an Elephant in the room.....then a deep voice....no there is actually 2 Elephants in the room.....and this is where it gets scary folk's......They both want in as they do not have any ' Skin in the Game '... Everyone turns around at the same time and low and behold its none other than BHP & Rio Tinto !!
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