RE:RE:RE:Even the [once] high flying ION.v.....RISING1 wrote: No Way Lithium Bubble is burst, people may be on the wrong horses but the Lithium Market as a whole is just getting started. Consumers demand (eg. EV, EB, environmental incentives) is on the rise at a very high level, with exceptional growth potential. But I do agree in a very brief cool off because of other "more known" industry performing better. Those money will come back very soon.
For clarification......I alluded to the fact that well established lithium explorers/developers like NMX, LIX, PE, BCN, etc will do well in the lithium space. With me suggesting then, that the small/micro lithium players have suffered a lithium bubble bust.
The front runner in this [cooled off] lithium market is Nemaska.....at least in the Western Hemisphere! But even there, there are problems. Nemaska just closed a rather large placement for $69 million, which will add 60 million shares and 30 million warrants to their outstanding total. They will now have 342 million shares outstanding and still short $489 million for their mine and plant Capital Costs!
Yes, the Net Present Value of their grand [full] project is a whopping $1.2 billion. But how much higher will the dilution have to go before they raise the balance of $489million? Sure, much of it will be debt, but with over 350 million share currently outstanding [fully diluted] and the project worth $1.2 billion [if all goes well] they will be lucky to pull of a double from their current level of $1.20/share.