A multiple choice quiz...............Why would POSCO buy their brine from LAC when they could own it themselves ?
A. They like to waste money.
B. They like the management at LAC and want to see them do well and get richer.
C. They don't have enough money to buy it.
D. They won't , they will buy the resource if it fits their process and needs.
Why would POSCO license the technology to LAC and let them produce the lithium , then buy their lithium off them ?
A. They like Pinetrees style of management and feel they are better at it than POSCO could be.
B. They like the current management and want to see them get richer.
C. They are afraid of getting brine on their clothes.
D. They won't , as LAC has no money to buy the license to the technology and no skills or insight into the new process , and POSCO would still end up building the mill , paying the current management teams salaries until sales , so all finanacing would be borne by POSCO anyway.
Where would LAC get more financing if they needed it ?
A. From a winning lottery ticket.
B. From their rich parents.
C. From another doubling of the share float , making current shares worth 1/2 of current value.
D. From POSCO and Magna.
What was Pinetrees original plans for LAC.
A. They always wanted to run a lithium mine , so they want to keep this one forever
B. They want this resource to build their summer homes in the beautiful Argentine desert.
C. They wanted this brine because they herad it was good for pickling peppers in.
D. They planned to finance them until production , then get their financing fees as well as any profit made on a rise in share price , as well as excersizing any options issued to them and seling out when they were in the money.
What will happen if POSCO walks away?
A. They will pull a few hundred million $ out of a hat and build their own mill.
B. They will use all their skills and develop their own new technology.
C. They will cry and POSCO will feel sorry for them and let them use the mill and process free.
D. They will file for bankruptcy and the assets will be bought by the highest bidder (POSCO).
xo42 keeps saying management will screw this up , but HOW ?
A. They will take their clothes off and pee in the brine while swimming.
B. They will steal pocketfuls of lithium when no one is looking.
C. They will make fun of the Koreans and beat them up after work.
D. they can't , they have literally no power over this company anymore and no funds to take this company in another direction , and POSCO knows it , as well as the Pinetree boys.
If you picked all "A"s , you get a big fat "D" , if you picked all "D"s , you get a nice big "A" !