Retail ignorance creates buying opportunityI think most retail investors here have a poor understanding of LLG. I have invested in them, on and off and followed them for almost 10 years now. After the failure of the former CEO - Benoit Gascon - who ironically is still on the board of GRA after having sold LLG's stake in GRA at a ridiculously cheap price, it was always clear that Lac Gueret would not come to fruition under LLG. They were simply too small for that to carry out a project that size. There was urgency in doing this transaction - with all the Canadian government initiatives in the EV & battery sector, geopolitical interest in graphite due to 80% being in China and foreign interest in Canada - because it would have been easy for a foreign player to scoop up LLG and with that 49% of Lac Gueret (or Uatnan as it is called now) for a nickel and a penny. This has been preempted now and LLG is still going to participate in the upside. Thus, current retail selling in LLG is most likely from disappointed shareholders who were still following pipedreams, but don't get the bigger picture.
Reality is that LLG now owns 2 great assets, almost 10% of NOU and 39% of SWAN, both of which will have major catalysts coming up this year. Buying LLG when retail investors are panicking at 40% discount to BV is a gift! I have used today's selloff to get back into LLG.
Cash burn at LLG is a valid point, but as a holding company, I would expect this to be rather minimal going forward.