Despite blunders it is not over yetTidalPool
"1)Management consistently fails to deliver
2) Management consistently does not tell the truth on important issues
3) Failure to deliver a shipment of product in Q1, April, May, June, take your pick.
4) Likely no product delivery in July
5) More startup issues
6) Can't make the darn stuff as expected
7) Will need another big cash infusion
8) Will lose customers
9) Will settle lawsuit for over estimating the lithium in situ and lose $50 million
10) Will find even less lithium and have even a shorter mine life"
theancient
"According to the AGM press release, dilution and, or more debt is certain, how bad will it be, we don't know, in order for CLQ shares to halt the down trend, they have to put 1000 tons of Li Carbonate on the train 90 days before they run out of money. this is just simple arithmetic."
I have not posted on this board for a long time since new board CLQ group board was started in March on stockhouse. I see that there is an open season of bashing CLQ / management. Pretty much same this thing is going on the other board. Lot of frustration among shareholders who are losing money & are in pain. There is a need for management change. Lot of blunders which is destroying the balance sheet of the company & there is no accountability. Board is not doing their job.
I agree with the 1 to 7 reasons/ points of Tidalpool. One has to be in denial no to agree with that. I think Tidalpool maybe wrong about 8 to 10. 8 & 9 are maybe / remote chance.
I am posting after reading the posts of Tidalpool & theancient & think that they are totally wrong about the following two points.
Tidal is totally wrong about point 10. I think the resource is going up not down.
Ancient your logic of 90 days is also totally wrong. Once the goods are on ship the company gets a bill of lading. The bill of landing is a negotiable instrument. I have no idea what are terms of payment with the buyer. That does not matter. Once they have the bill of land / shipment made they c can go to number of financial intuitions & sell / discount the value of receivable. They will get their money instantly minus commission & interest till the due date.
The is a very common business practice among exporters. I know this because of have extensively handled every type of international trade & financing.
Business can also sell / discount local or foreign account receivables. You can do it with or without recourse.
So when CLQ ships product then in matter of days after the shipment then they can discount the account receivables & get paid. I am sure they would know about this option.
The main risk with CLQ is production & shipment when this happens then the risk diminishes. They are number of ways to get paid instantly. They are selling for a decent gross profit margin. Shipments mean the beginning of inflow of cash.
Account receivable financing g is a very big business. It is short term financing & relatively low risk if the buyer is a strong company. Depending on the financing the recourse can be on the seller only or on both. Anyway the process of getting receivable financing is relatively easy. I do not think that CLQ should have a problem with getting this type of facility. If the payment date is 30 to 90 days from shipment then CLQ would have to pay interest till the lender gets paid by the buyer.
Now because of major mess the stock is in a penalty box & trading at a discount under tough market conditions. The market cap is only $170m when they have spent lot more than that on the project which is about to produce. Despite the issues there are still prospects that things can change in short term. Everything depends on production & shipment. Once they get the production going things will fall in place & if the commodity price is stable at the present level then the stock will try to recover eventually.