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clock Created with Sketch. 02/05/17
21:15
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Originally posted by Cadel
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I will probably regret this post but would appreciate gaining a better understanding. I just skimmed/read the PLS announcement regarding their offtakes/funding agreement and my first thoughts are thank god we are not in a position to have to take this type of deal. So from what I can seee they get $20 mil from ganfend to secure 10 years of offtakes. I imagine that the $20 mil is not a gift, and will come from equity or as a debt. It states that the $20 mil will fund the stage 1. As we know it will take a lot more than $20 mil to get it started closer to $200 mil. I know offtakes are really important to help turn explorers into producers, but I can't see how this will get them over the line or help them achieve the best market prices. There seems to be a few details missing. I appreciate that this is a Gxy thread but I wanted unbiased opinions and we all know that we are not an island that other things that are happening in the lithium space affect us.
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How much of a dick am I. I just realised I gave what looked a lot like a biased opinion. I looked at PLS this morning and for the first time I thought it looked reasonably valued and thought about having a go. So I was warming to them at this mornings price, but I'm really not sure if I like the announcement. I know I should put it out over there but I know I would not get much unbiased opinion. I have been here for years and respect many of our posters.
