AGM report, sorry for the repetition Here is my resume of the 2019 AGM
Tinker and the rest of you, you did an amazing job at reporting what as been said today.
Thank you very much to all!!!
I was writing my report and then saw all your posts...
I added some topics or perception of mine, but didnt have the energy to cut out what was already mentioned (witch is most of it...) , so please excuse me for some repetition of what as been already said...
First let just say that this year we were a small group compare to last year and there was no lawyers or it didn't seem to be in the room, at lease not has obvious as last year.
Once again Great presentation and explanations from M. Haber. He makes this company worth looking at just by his presence with the company and I say that without diminishing any value of the rest of the team.
JSL even thought he was not physically with us, he assisted the AGM via web conference, he seemed calm and confident as usual and he was ready to answer any question as best as he legally could.
It was by all mean a short, but interesting AGM. It gave the feeling that we do have indeed a very interesting team build up to get this company somewhere interesting in a short to mid future. (at lease that is my opinion, but some may see it differently)
# 1- What is holding up the financing?
R- Well both JSL and M.Haber kind of explain it in a complementary way. I felt with their answer that nothing is really holding the financing, it is advancing normally, may be slower then they would like, but has M.Haber explained big companies out there have a lot to take in consideration. As exemple, he said that for a car company to switch its production toward electric cars, it requires billions and billions of dollars (i dont remember the exact number he used) and there is many aspect to take in consideration it doesnt happen over night. When a company (nothing specific as been mentioned...) (car or battery manufacturers, or etc...) puts that kind of money they want to minimize as much risk as possible and one of those risk easily avoidable seems to make sure that the mine can go ahead witch = permit
Haber said that they are not responsible of the time the other parties (cie / partner) are taking to evaluate / analyze, it is a HUGE amount of money that those cie have to put in the electric era and there is a lot to consider.
There is a possibility that they signed with a partner before the permits arrive, but it did seem like it is one of the milestone that needs to be achieve before an official commitment is done. They said that having the permits will derisk the project and that helps in negotiation...
JSL said that they are talking with big societies and that they are working actively to get the permits done as soon as possible. He explained that most of it depends of the government, and the wheel doesn't necessarily always turn as fast as wanted in that department, delays can occur but if it does it is out of their hands in that regards.
JSL said that their goal is to have it done by the end of this year (2019), as soon as possible of course but they dont entirely control that time frame.
JSL said that phase one of permit /question is completed and they are waiting for phase two from the government. He said they are actively working on it and are ready on their side.
JSL also said that what they are looking for is a partner with who they see them self working together for the next 20 years, they are looking at a good fit, they need to be able to work together hand on hand they don't seem to look at just signing a partner that will put the money and not being involved. They want a partner that can support the project.
JSL said most of the other project out there already have a partner, their is 2-3 more project available but in reality a lot more then that that will be needed, about another 6 like CRE. He didnt seem to be worry about the financing.
#2- Is our current share price affecting the ability to to find suitable financing?
R- JSL said that he cant go in details concerning the negotiation, but said that right now the discussions are base on the value of the project not the value of the cie (share price)
JSL said that they want to keep the control of the project (majority) and are not looking at giving more then 1/3 of the project away.
JSL said that the Helm deal can be used as a base but he think they are able to get a better deal then that. JSL said that the market conditions are much better then at the time of Helm.
#3- How is Nemaska affecting us?
R- JSL said that it is a market with not a lot of player, so it does affect, but what they mostly get as a question is of how they will do it differently?
JSL said that CRE has a much different approach, they are still talking about a 2 phase approach (but the ultimate choice will be the partners choice in that regards) He didn't explain in the details, but we could understand that Rose project is in a different category and that he was not to much concern with it. (that was my impression at lease)
Haber said that one big adventage that CRE has is that it can produce of equal quality either Hydroxide or Carbonate depending on what the partner wants. (That increase the number of possible partner)
Haber also said that CRE has a superior products in the market
#4- where are we with Primero?
R- JSL really seems to enjoy working with Primero and said that it is moving well.
By the end of august Primero will come out with a Max price for the mine construction.
2-3 months later they will come to an agrement with a fix price for the construction, it wont cost more then that fix price and the fix price should be under the max price. JSL said they can add incentive for that to happen.
JSL said that what is also good with Primero is that they will be able to build the mine and run the mine at the beginning while CRE gradually train their staff to operate the mine.
JSL said that if every remaining steps goes as plan their is still a possibility that the construction of the mine start by the end of the year. (many steps are out of their control such as permits)
#5- where are we with 12 NDA?
R- JSL when he was first ask the question said that he couldnt says how many were still in play but said that they are in discussion with few of them.
When he was ask the question later (I dont remember how the question was ask exactly) he mentioned that the 12 were still their. It gave me the impression that even if the 12 are still their, only a few if not one is more serious. (to me it goes with the fact that they want to choose with who they will work, not just the other way around) (yet again, my personal impression from what he said)
#6- What are the plans to develop the rest of the property?
R- JSL said that more capital is require to drill more holes and right now the market is too low to do it so it is not in the plans for the moment.
As for the other properties that CRE owns, JSL said they have been approached by different goups, but decision as to be maid as if they want to develop them themself, sell a part, bring a partner etc. He said that the interest is their, but they seemed to be focus on finalizing Rose first.
#7- Do we have enough money to complete what is necessary?
R- JSL said that we have enough for engineering and everything. We also have enough to complete the permits
JSL said that we have about 3 millions left, to last about a year and he believe that we can achieve a deal before more money is needed.
#8- Is Tantalum been negotiated too?
R- JSL siad that they are discussing with small group, that tantalum represent 5-6% of the revenue and that it wont be a problem to sell when the time come, but a deal for the lithium will come firts.
#9- Other topics
Haber talk about the circle of price not just lithium but everything, it is normal to see a drop at one point and to him the present drop in lithium is normal and presently represent a 10-15 % drop globally not a 50-60 % like what is seen in China. SQM prices are what we should look at. He encourage us to read their quarterly report.
Haber explain that you dont want to be stock with a contract for years right now if you know that the prices will go up. Even if we end up been 1-2-3 years later (then originally planed) it might end up been a good thing at the end.
Haber said that the market is already short, CRE and more are needed to cover the needs to come