FP article
"... the Port of Mobile only three hours away". Made me chuckle. Thanks Don.
While I have no doubt that they can get a mine and spherical graphite conversion plant built, how far in the future is that? Nobody mentions that in the article. The PEA IRR%s look great. But now it looks like we need to raise cash and do more drilling on both Bama and Coosa, analyze those results, raise cash to put out a PFS and do a PEA for the other deposit, raise more cash and likely do more drilling on both properties, build a test plant?, put out a BFS, raise cash for the mine and plant, build everything, and then if spherical graphite prices are still up when all this is done, start generating revenue and start paying off the debt accumulated to build everything. If everything goes according to plan, it will be a great long term hold for 10 plus years.
I went through this whole process with Largo Resources. It felt like it took 7 years from where ALP is today, to get the plant/mine financed and into production. And unfortunately for Largo, the prices they were expecting to get for their product did NOT hold up - so the market savagely beat them with an ugly stick. Lowest point in those past 7 years was reached just in the past 2 weeks.
I'm just guessing at the timing of the cash raises, but I should point out that these dilution events were what ultimately is killing almost all shareholder value in Largo. Over the time I was involved with the company, they increased their share float by more than 700%. That made those early stage share purchases almost worthless years later. And for what it is worth, Largo is currently one of the lowest cost producers in the industry of their Vanadium product. Sometimes you just can't win for trying, as they say.
So pump this story all you want, but beware of the potential problems down the road, and of how far the company is actually away from production.
But all that said, this is tax loss season, and the best prices for this stock and many others are likely to be found this week and next. I'll be trying to catch the bottom in a whole pile of stocks, including ALP.
GLTA ALP longs.