RE:RE:RE:RE:007 TD and 002 RBCI saw a difference in the way we traded compared to Nemaska since we announced the Primero news. It seems like the market finally understood that CRE's business reality is different.
I am less worried now about their big mess having an impact on us. Time will tell..
I personnaly think that the restructuring of Nemaska will delay their project and will make us shine more
IF management prove they can deliver on a solid partnership / financing deal. We might even catch up to them and have a buIlt mine before them.
I might be a little optimistic but am also hoping that having Nemaska's mine delayed should have an impact on the upcoming supply accounted for in the different projections, hence impact the prices.
Here is an article from "Le Nouvelliste" about Nemaska. Minister Pierre Fitzgibbon comments on the Creditor's Protection request. It seems like he just came back from a business Trip to China.
Link to Article I pasted a google translation of the article below, for those of you who don't read french
Nemaska Lithium: a must, believes Minister Fitzgibbon GUY VEILLETTE The Nouvelliste Share SHAWINIGAN - The Nemaska Lithium project remains relevant to meet global growth in demand for electric vehicles, but it must obviously go through a painful restructuring to clean up its business plan, according to the Minister of Economy and Innovation, Pierre Fitzgibbon. "This is a very important project," he reiterates. “The company decides to protect itself from its creditors because its capital structure, unfortunately, is very deficient. We remember the cost increase of $ 375 million ... There are a lot of people interested, but when we look at the structure, there are bonds at very high rates, at 11.25%. The company has money to keep going for a while. We must consider that it is more likely to have new financing with a protection like this to review certain arrangements with certain creditors. " "The company has tried to find additional funding with the current structure," said the minister. "Obviously, she did not succeed. Investors want some structural changes, which the company will do in the coming months. ” In 2018, the Quebec government announced an investment of $ 80 million in the share capital of Nemaska Lithium. Ressources Qubec had also subscribed to $ 50 million in bonds, as part of global financing of $ 1.1 billion at that time. Last February, the company announced, however, that it had to find partners to face cost overruns of $ 375 million to complete its projects at the Whabouchi mine and its commercial plant in Shawinigan. "I’m coming from a tour of Asia to talk about electric vehicles and it’s clear that lithium is as interesting as it was six months ago," said Fitzgibbon. "The price is very low right now, but it is a circumstantial aberration. Vehicle penetration is still growing. If we look five years ahead, it will be an important commodity. Lithium will always be an important part for batteries. ”
At the moment, however, there is oversupply worldwide. The Minister of Economy and Innovation remains convinced that Quebec’s mining company can have its place in this highly competitive market. "I have met with over 40 companies in Asia," he says. "When we look at the anticipated growth in the conversion of gasoline and electric vehicles and when we look at the implication of this on lithium, it is clear that there will be additional needs, there is no doubt . " "There are a lot of OEMs who want to integrate vertically, with some stake in a mine to secure their supply of lithium," he adds. "It remains a strategic number that must be exploited." In this context, there is no question of abandoning a similar project, so close to the goal. "The government has always been interested and it is still interested," said the minister. “We are still looking for partners. Quebec is super attractive, if only for its clean energy. We have a competitive advantage. ” "Of course, we want it to be done quickly," he ends. "But there is no race either. Between 2025 and 2030, there is talk of a conversion rate of 30% to 35% of vehicles. Lithium is a strategic mineral. There is no doubt that it will take, but we will have to be competitive. "
Cheers to all longs!!