RE:RE:National Bank: Outperform rating and $1.90 target for LLGI agree that they don't care about the small shareholders, that the mine will get built (why would Quebec Inc. and the Government invest all this money and then walk away?).
Significant dilution is certainly a possibility, they need to plug - as the analyst pointed out - an $90mn equity hole. About $30-40mn could come from the Nanoxplore stake, that would still leave about $50mn. Let's assume they did another 100mn shares at $0.50 to raise that, bringing share count to 235mn. At current share price of $0.48, this is a market cap of $113mn. Mason aims to produce 50 tons, sell at $2'000/ton and costs of $500/ton, so gross margin of $1'500/ton. This is $75mn in gross profits. Even assuming they need debt of $130mn and pay through the nose on that one (>10%), we would still have around $60mn in cash coming in. Not counting upside from battery material.
So, I still think with the shares trading below liquidation value, even with a massive dilution and expensive debt, it's cheap at these prices. It can easily go back to $1 and still be reasonably priced.