Nemaska Lithium Inc NMKEF

Nemaska Lithium Inc is a Canada based lithium company. It is engaged in exploring and evaluating lithium properties and processing of spodumene into lithium compounds in Quebec, Canada. The company supplies lithium hydroxide and lithium carbonate to the lithium battery industry used in electric vehicles, cell phones, tablets, and other consumer products.

GREY:NMKEF - Post by User

Nemaska Lithium Inc

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Comment by Nic777on Jul 29, 2018 8:11am

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Post# 28382319

RE:Bourassa Insider Trading - (4) - summary

BCOldtimer, Thank you for setting the record straight. This is impressive work.

BColdtimer wrote: 4) GB Overall behaviour at profiting on sale of any NMX stock he owns or acquires

Back at the peak of about $2.40 in January of 2018/ December of 2017: $16.5M

·     He had about 5.7M shares, worth about $13.68M. A tax cost to him of $1.25M: Net equity (before tax) to him of about $12.43M.

·     Plus about 2.188M options at a weighted average strike price of 54 cents.  So this would have a net value (before tax) to him at that time of about $4.08M (2.188M x ($2.40 -0.54))

That is what he had in the game while trying to get the CAPEX financing.

As of July 25, 2018: about $3.5M(before tax.)

·     6.07M shares x (75 cents less 26 cents cost) – now worth $2.974M.

·     Options that with a strike price under 75 cents: current net value to him (before tax) of $613,000. Options above have no value at this FMV of 745 cents.

His unrealized value in NMX has obviously shrunk considerable:  $13M (before tax)

If he had nefarious behaviour, or if he treated this as a pump and dump, I see no evidence of this. You would have seen numerous personal advantages selling of this stock.  Did you see any none. None in the run up in Lithium stock in 2017 and none in the stock collapse of all lithium stocks to date in 2018.

Obviously some posters cast disparaging remarks on the management of NMX.  I don’t know about all of you, but short of Chinese money and losing control I see no evidence of any other lithium mine being successful during this time period in their CAPEX requirements.  I think it is obvious if NMX only wanted CAPEX to finance the mine they could have got their financing in 2017 when times were good.

I think it was a very difficult market out there in 2018 to get this $1.1B in financing. And thinking back now I think we are bloody lucky and I'm thank full that the financing was completed.

And since some of you are posting your positions I will do so as well:

I have 168,000 shares of NMX with a very high average cost of $1.75 in my non-registered brokerage account and $1.89 in my TFSA: overall $300,000 invested. So yea I obviously bought in when the stock was slowly slipping below $2, and have averaged down over time.