RE:RE:RE:Upcoming catalystsHi Roixroi,
I completely agree with you, however, the delay indicates that LAC really does not have control over the project. If SQM really knows what they are doing, the pond and well construction work should have been well ahead. I am working in the construction industry.
tiger
ROIXROI wrote: I think we should downplay any concerns re Phase 1 production delay to early 2020. All of this production has been pre sold so it's simply a few months of cash burn and a slight delay in revenue which is essentially guaranteed at market price. To put it in context, the life of the reserve is expected to be 40 years.
2020 is also perfectly in line with the significant demand spike, so as a producer, LAC will be more attractive than ever and likely motivated to accelerate Phase 2 and perhaps get beyond the forecast 50K tons of production (SQM/LAC, PH1/Ph2).... they are building the infrastructure now for Ph1 + Ph 2 which will position them well to scale and ramp the operation.
In the grand scheme of things, this timing shift is a blip.