1. Takeover at some point in the future
2. Capital raise to the tune of $100M and debt finance the balance
3. Give away 1/3 of project to an off take partner in return for funding
4. We drift into oblivion - the Spider scenario
These scenarios will require the F study which in return will require the pumping parameters and the results of the pilot ponds (which we can't commence until WA gov signs off on the pending paperwork). Of course there are other factors to consider such as the freight studies.
I wasn't really surprised by the resource size, we knew it was coming and all the drill results indicated a big number.
The reality now is that the project economics are more to do with how much brine we can pump, how big the ponds will be (this will be determined by how much we can pump and how much money we have) and how much we can truck/rail out.
I'm not convinced that the future lies with talking to small scale local stockbrokers, all they are good for is a few mill to "sophisticated" investors who frequently sell in the face of a liquidity opportunity such as yesterday.
We have had multiple raises between the current price and 90 cents, this is one of the reasons why the SP hasn't gone anywhere. I also wouldn't be surprised if some of the broker options that were recently converted are now being sold.
In this market for resources I don't see a $10 takeover sadly.
RWD Price at posting:
65.0¢ Sentiment: Buy Disclosure: Held
