RE:Will Neo Lithium gets stuck like Nemaska or Bacanora? No!Hi GUNSS,
I quite agree with your concerns, the same concerns were raised during yesterday's Lithium Symposium in Toronto.
There were about 60 people attending the prensentation, including 4 analysists. There were some discussions about EV, lithium price, lithium supply and demand, and Waldo gave his presentation. Most were the same presentaion, the new ones are the Production Well pumping tests and some photos marked September. I left after his presentation without listening Q/A.
In my opinion, NLC is the best development junior. With its resource size, high grade, low impurity, 100% owner of the salar, long life of the resource, it will find its strategic partner. I believe this is the missing puzzle of NLC, the million dollar question is how capable of NLC's management team is? and under what type of term?
NLC has $50M, it is enought to go through to Feasibility study, so it has plenty time to raise money when needed.
tiger
GUNSS wrote: The fear is that Neo Lithium might be forced to issue a large slug of stock near C$1/shr. Nemaska got crushed because of too much equity dilution. And, look at Bacanora Lithium $BCN.L -- a simimlar concern weighing on them -- they tried to issue $100 M in shares in July but had to pull the deal due to adverse market conditions. $BCN.L is down 78% from its 52-week high....
Nemaska is down 72% from its 52-week high....
I don't believe that Neo is in the same boat as Nemaska/Bacanora, not even close. Both of those companeis have new business plans (technology angles that need to be proven out). And, NLC.v has nearly C$50 M in cash, there's no urgent need to raise capital at unfavorable prices.
If one compares NEO's PEA on its 100% owned 3Q project to the PEAs of Advantage Lithium ($AAL.v) and Millennial Lithium ($ML.v) - Neo's is far, far better. It's night and day, yet, Neo is trading at an EV/tonne ratio of C$11 vs. C$35-C$40/tonne for $AAL & $ML.
I don't understand what I'm missing here. Anyone know why NEO is so cheap compared to $ML.v and $AAL.v? I think Neo is very cheap compared to Lithium Americas $LAC.to as well..