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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

Post by Tcheckon Nov 30, 2019 10:12am
115 Views
Post# 30408617

effect of foreign exchange on foreign investment in canada

effect of foreign exchange on foreign investment in canadai made a stupid post saying that pallinghurst could easily fund nmx with euros borrowed at a low rate .
but now i realise the currency risk is too high .
if you borrow euros and you invest in a weak currency like the loonie you could lose more than you bargained for .
thats why in general i think that foreigners dont invest in canada .whatever they gain they would lose in the foreign exchange .the reconversion of the loonie back  in the foreign currency .
it has nothing todo with the merit of the companies here .

i was invested in ica .
second largest construction company in mexico and it went bankrupt  to my great surprise ( just kidding)
having borrowed in us dollars and with a peso falling they couldnt make the payments .
their profits was in pesos .and they were doing ok in their country .they tried to diversify in the us.

canadians and canadian banks will probably also prefer to invest in us than in canada .

so if we look at moneyflows it is all to the us from all the weaker currency countries including us canadians ,
allthough we are not an emerging country our small limited canadian economy looks like a  backwater . one wind blows all sail boats .we are stuck except if we are much better than the others in what we do .foreigners will buy canadian and australian lithium because it is relatively cheaper  but i dont think it is in their advantage to invest in the mines themselves .am i wrong ?

so pallinghurst must be  looking  twice before they wade into this investment .
from euro to loonies and back..the investment case of pallinghurst in nmx remains appealing because we crashed so much .they will double  their investment with ease no matter what.

can we join the euro ? just kidding
i wouldn t mind 
and cuba can and the carabian islands can  join us .
maybe we should ask the us to join us .

prosperity (investors) always follows the laws of the strongest .?????





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