re Buffalo CEO commentsYou are correct that many of us do not know the technical requirements for a DFS. You are saying partnership agreements are required? Why? If a company chooses to go it alone, they do not require partnerships.
Offtake agreements are required? How? FL cannot guarantee a supply of ore to anyone at a fixed time schedule, and have no ability to pay a penalty if they cannot complete the terms of a contract..
How can FL sign agreements for secure equipment pricing with no cash, and no obvious route to get any? Would you take a promise to pay from this company?
The misconceptions investors have are because of the poor communications. No quarterly updates,
no clear development path, and a long series of missed deadlines. Allowing the finances to drain as they have is a clear abdication of the board and senior management. The revenue side of the income statement is easy to forecast....zero. The main duty of the board is to keep the company viable and funded, and they have not done that.Now they are cornered, in a bad lithium market.
These guys took a risk. They expected the road/bridge sooner , they expected lithium prices to firm, government support to be imminent, and they risked the future of the company on those assumptions. They were dead wrong, and it was a bad risk to take, right or wrong.
Either the board gave management bad advice, or management did not listen to the board recommendations. Either way there is serious fault here, and changes need to be made.
Changing the tone here will be very difficult. The lithium market is a mess, and there are many acquisitors around with cash that could easily buy all of the company, but at a far reduced price than we all thought it was worth.
Navigating the next year will be difficult for all players in this industry, worse for those with no cash.
Best of luck