RE:Somting to watch
Certainly the lithium space has been hit hard and it is proving very difficult for CRE to put together $600 million in financing to fund the mine. That is why the shares are trading where they are.
But the project is truly ready to go, more advanced than other similar projects in Canada. And they have no debt and $25 million in cash (raised in 2021 at $1.75 a share equity offer). And while they are spending cash on renewed drilling program at West Rose to increase scale of project, they still have 18 months of runway on current cash in bank. So they are not forced to do anything quickly.
Plus they are somewhat of a call on the PN polymetallic discovery. It is a way to play that as a passive investment. They own 13 million shares of PN. They also own 20% of the NISK property which includes the advanced Nickel operation but more importantly the emerging Lion polymetallic discovery. And they are carried on that operation through to a feasibilty study so they get their share of the current PN robust exporation efforts for free. Their share of NIsk should be worth roughly 25% of PN valuation and should increase in paralell with any further appreciation of PN stock. So there is value in CRE shares even if the Rose project is temporarilly stalled. And there is little acute financial danger with no debt and $25 million in cash while litium market tries to find more solid footing. Just my opinion. I have bought an entry position in CRE as a passive investment in PN and a value play based on the Rose project and the possibility it will advance to construction toward a profitable mine - at some point. Hopefully soon.