RE:RE:RE:RE:RE:November presentation - nothing new - question?????Hi S-S,
The 1st and foremost is NLC has 35 millions, that can last at least 6 quarters, and even longer if Li market is persistent low. Most Li producers' Q3 are out, and they are all opimistic about the long term prospect, although they are facing challenges. Li will recover, as Albemarle said it may last 12 to 18 months, not as you think it will last 5-7 years.
LAC with SQM was a bad deal, IMO. I was not invested in LAC at the time, but was an investor much earlier. I had Rodinia Lithium with a loss and sad end.
Regarding Uranium, it is a different story, and I still have investments in this sector. Li is a growing industry while Uranium is a dieing industry. Nuclear has its role, but has been or is being replaced by renewable and natural gas, and the future is not bright, and I don't believe it anymore.
Right now Cash is the King, NLC can survive the slump of low Li price without needing extra financing. ML is in a similar position. ALL other Li juniors have no money, and the only options are diluting the existing investors.
If I choose, I would rather not getting financing now, you will not get a good terms, and you have weak hand.
tiger
supersceptic wrote: Tiger6301
"NO Way I will accept the 20M for 50%, as LAC's management accepted the SQM's offer. it was a stupid deal, and I would be rather NO financing."
I would prefer better deal too. ORL has model deal giving up 1/3 for full development. Kidman had great deal, but these are exceptions of better Li times.
LAC deal, I was s/holder at the time, looked like huge disappointment at first. In long run it was not bad (not great, agree).
I am not promoting it, but without that deal LAC might have 100M cap now.
End up without financing is a riskiest game. What if Li price slump will go for next 5-7 years (recession talk is here already, China Li development, new tech....). No one expect that uranium prices will stick to the bottom for so long.
Example, Rodinia Lithium - spend 20m; went through PFS stage; lost opportunity that was on the table; run out of $; sold 100% (entire deposit) for 1M to Aberdeen finance..
I was followed Rodinia, nearly invested in it when s/p were low.
The true investment Haloween story.
You should read investors' comments after the sale, half of them were blocked.