Nemaska Lithium Inc NMKEF

RE:RE:RE:RE:Nordic trustee / NMX bonds settlement proposal

[Calgary_AB]

this should have been done over 2 years ago
one of the reasons NMX is under CCAA is because they didn't grow organically and they aimed for the moon without any organic growth...

Now it might be a solution but I doubt it. The damage done is already too big...just the screw up cost north of 50 million and that means future profits already spent for nothing.

To top it all, if they have started the organic growth in 2016 as it was planned at one time, the SP would have been around $5.00 today and only around 200mllion shares out with organic expansion plans...but now they have almost a billion shares under CCAA and delisted from TSX...
Damage was done when GB went for the big financing with no organic growth first.

Now is too late...

Charlene wrote:

I think they should do this in phases.  They should raise enough to complete the Whabouchi mine first.  So, they don't have to cover the bond shortfall.  They need about $200M CAD (which was PG investment offer).  They should be able to produce Spodumene Concentrate at a profit as their cost should be about $347 USD per tonne.  Since its selling currently around $500 USD.  That should produce some nice cash flows - $40M CAD in profit per year (200k tonnes @ $150 USD profit per tonne).   That should equate to a market cap of about $600 M (at production) at a multiple of 15x earnings. 

This is why PG and (hopefully many) others should be interested.  They could raise more money later to complete the factory... but this can be done when the market conditions improve e.g. 2021.