Tough weekWhat a pounding we have taken this past week! So, I decided to pick up a few more shares. Did I “catch a falling knife”, or on the other hand as they say, “the best time to buy is when there is blood in the streets”. Well, there definitely was blood in the streets this week. Could the share price go lower – sure thing, and technical indicators are looking pretty bearish right now. Regardless of whether the share price goes lower or not, in my opinion, buying at these levels is a screaming bargain. As painfully long as this financing process has been, the company has a solid project, an impressive team (I’m know many on this board argue about that) and excellent upside potential in terms of increasing mine life and capacity (increasing capacity may be one of the main keys to increasing NPV). I had a conversation with JSL a while ago and I believe he said they could be profitable at current prices, which if correct, would indicate they can be very profitable with lithium carbonate/hydroxide prices >$20k/t (some Li experts have recently indicated a price >$20k/t is needed for investment in the lithium supply chain outside China).
Although a lot of construction work can be carried out during the winter, I think it would be quite challenging to pour huge volumes of concrete for mill/shop/office facilities in northern Quebec in January, so I am still thinking there will be completion of the financing package in the very near term with construction in progress this fall, although I was thinking the same thing a year ago.
Cheers and good luck to the longs - hope you are all haning in there while the bears are roaming about!