Nemaska Lithium Inc NMKEF

What is the total cost to undo the capital structure?

[Ciseaux]

Pallinghurst said that the deal did not go through last Fall because they did not like the capital structure. If this is now fixed, could they bid the same as last year, minus the cost incurred to undo the capital structure?

What is the total cost to undo the capital structure?

[TicTacTo]

Doubtful, last year deal is dead, all new offer

[mick1888]

TtT, this is a competition with 8 bidders. While no doubt there will be some vultures in there hoping to achieve the steal of the century, there will also be some very keen industry players ready to pay for a potentially great project. And Pallinghurst / Traxys may be one of the latter? Remember this JV has 2b USD burning a hole in their pocket, and at present nowhere else to put it besides NMX

[Calgary_AB]

"the steal of the century" was already done by GB... and the reason he was able to do it is because your enthusiasm and blindness How can anyone say NMX is "The steal of the century"? Do you still believe in Santa? how about Quebec goose laying gold eggs? Remember, your posistivity and naive brainwashed got you where you are with NMX in the first place... Keep doing the same

[mick1888]

There was never a night or a problem that could defeat sunrise or Hope.... ;-) Got Lithium CalAB... ;-) GLTA longs

[Calgary_AB]

it's one thing to have hope it's another to think NMX is a gold mine... No, I don't have LI just Gold and silver for now

[mick1888]

CalAB, I like that 'for now' bit....;-) F#c the climate argument when it comes to money, man of principle I see.... ;-)

[Takeactionnow]

What Pallinghurst (and a lot of others) didn't like is the way the debt was structured (the restrictions were way too tight and posed a serious risk, as we have seen). The rate was high too, but people tend to forget that the original idea was to get into production and start paying back as soon as possible. Then came the cost overruns ...

[Takeactionnow]

I've mentioned it before, but nobody commented (that I saw). Any thoughts on why (and let's try to be serious rather than just say "because management was stupid"), with a detailed, costed engineering report in hand, the cost overruns were so extensive? I know that the building renovation in Shawinigan was way more expensive than foreseen, by why was this (and any other cost

[mick1888]

TaN, I am not convinced we should be encouraging the phrase 'cost overruns'. I have worked as Lead Procurement person on many large projects in the Gas, Oil and Water sectors, and for the life of me I have never seen anything like this. It is incomprehensible to me that it would be possible for a project to discover additional costs in this scale 12 months into construction. It is

[jphilippe11]

Management should be accoutable for this. They were all aware. let say Bourassa and Marc dagenais are stupid and their financial background could have been an excuse. However Steeve Nadeau is a CPA with 20 years experiences!! The must shameful in all this, GB steeve and Marc received a 1M bonus to get the 1.1B.  "This bonus is provided in a Corporation’s policy established on October

[Calgary_AB]

EXACTLY...

[Takeactionnow]

You make great points, Mick. Engineering plans cost out all elements in advance and should not be off by too much. That is why the fees are high (the work involved and professional responsibility) and a contingency fund is in place (since there is always some variance). The existing building was easy to evaluate, so what was the problem??

[TicTacTo]

Between 2016 and 2019 project cost multiply by 2.6, problem ? they put lipstick on a pig to raise cash at overpriced company value.

[Takeactionnow]

To be fair, the scope of the project changed significantly.

[TicTacTo]

Between 2016 and 2019, really ??????? Just slight increase of production from 30kt to 37kt not great change, same mine, same processes, nothing material.

[Takeactionnow]

We would have to look at the exact timing of events to be sure, but the plan was more ambitious after 2015. You are right that the budget jumped, but part of this was better insight on what it really would cost.

[TicTacTo]

Look at 2016 techncial study, more or less same project but 2.6 times less expensive, difficult to explain ... whabouchi is a mine process, spodumene concentrator not new technology, electrochemical process the same ... very very fishy.

[Takeactionnow]

TTT, for me the bigger concern is spending beyond the plans. At least we knew that the plan budgets were higher and could adjust expectations accordingly.

[TicTacTo]

Right, as investors were aware of cost bump between 2016 and before 300M overcost PR ... was their duty to check. Main problem is with overcost/delay, acrobatic financing suddenly transform as a house of cards.

[Takeactionnow]

Here is the announcement about the change of venue to Shawinigan: QUEBEC CITY, QUEBEC--(Marketwired - Sept. 8, 2015) - Nemaska Lithium Inc. ("Nemaska Lithium" or the "Corporation") (TSX VENTURE:NMX) (OTCQC:NMKEF) is pleased to announce the signing of an agreement in principle with the City of Shawinigan for the acquisition of part of the land and part of existing

[TicTacTo]

relisten that also, last great boubou interview before been push out, LACC ? not a problem everything fine, no worry sleep well https://cdn.cogecolive.com/prod-20200130/guy_1580387493990321.mp3?fbclid=IwAR266gCjU29-C6EnOUQeXKLIMAFUKC3EmttP4IAjmR-WUrRvgq6sM_kJOIY

[Takeactionnow]

Nobody listened to advice in 2019 that $10-20 million should have been paid to the bond trustee to make the problem go away and allow completion of the Pallinghurst deal ($30 million was eventually paid at the end of January 2020).

[TicTacTo]

Problem great boubou overconfident guy and maybe expect Nordic will be scared by McCarthy, but don't mess up with Vikings !

[Takeactionnow]

Yes! As amazing as it may seem, the whole mess we are in today COULD HAVE BEEN AVOIDED in late 2019 if common sense had prevailed. The risks were too great to "stand on principles"!

[TicTacTo]

And pretty convinced IQ will have jump in to help replace bonds with low interest loan.

[Takeactionnow]

This actually makes sense. IQ's mandate is to advance the interests of Quebecers. The project is a long-term investment in assets located in Quebec, where it will (eventually) pay taxes, employ Quebecers, and contribute to government "green economy" plans.

[Calgary_AB]

and you Anon helped them pump like crazy...did you forget?

[mick1888]

TaN, to put the alledged overrun into perspective. The last large Energy project I worked on as Lead Procurement was a 19MW CHiP Biofuel Power Plant (powers the equivalent of 40,000 homes). The complete EPC contract was worth £70m (CAD120m). Are we supposed to believe that there was an overrun cost equal to approx THREE similar brand new Power Stations? And that this was only discovered

[Takeactionnow]

Mick, the spending is difficult to understand. I have not seen a good explanation.

[TicTacTo]

Great boubou explanation for overcost were really dumb -cost of worker camp at mine site, well during Nordic litigation we get value of camp obligation to 3M (less than 1% overcost) -realize need inox tubing to avoid corrosion at Shawinigan, ah ah ah ah a chemical plant needing to use inox tubing what a news -rest is as ridiculous And do not forget cost of P1P pilot plant of 135 million

[phantom666]

IMO for the cost overruns, there was a change in the direction of the project mentioned many many months ago to focus on producing more Lithium Hydroxide which in turn required a total redesign of the plant. From additional engineering, equipment, piping, electrical, added labor costs etc.etc. The mine and processing plant will be completed. The only thing is will it stay on the stock market or go

[phantom666]

The decision to focus on Lithium Hydroxide was in the NR July 31 2019

[mick1888]

If July 2019, as you state below, that was approx six months after the overrun was announced.

[TicTacTo]

Wrong change almost nothing, they stop producing lithium carbonate and produce only lithium hydroxide but in NMX process lithium carbonate is produce from hydroxide, no change to electrochemical plant (most costly), contrarly avoid to build the hydroxide to carbonate unit, even if less costly than electrochemical unit (metathesis) should induce a cost reduction.

[phantom666]

Wrong Triple T, first U produce carbonate then convert it to hydroxide. Key advantages of Lithium Hydroxide Battery Cathodes vs. Other Chemical Compounds include better power density (more battery capacity), longer life cycle and enhanced safety features.

[TicTacTo]

You TOTALLY miss the point, bet you never look to NMX presentation before putting a penny in it. NMX process, spodumene, treatment with sulfuric acid to produce concentrate as lithium sulfate, electrochmical conversion to LiOH and THEN lithium carbonate, it is why carbonate OPEX higher than hydroxide. Brine, lithium chloride then treatement with soda ash to provide lithium carbonate and if

[TicTacTo]

Absolutely wrong "Key advantages of Lithium Hydroxide Battery Cathodes vs. Other Chemical Compounds include better power density (more battery capacity), longer life cycle and enhanced safety features." LiOH is needed for high nickel cathode (more 60% Ni) otherwise chemical reaction do not perform well, but Li in carbonate is same Li as in hydroxide !!!  Cathode do not remenber if

[Takeactionnow]

"Tic Tac To" the great wizard incanted, and "P O O F", the cauldron filled with lithium carbonate...

[Calgary_AB]

any new purchaser is purchasing the assets with court regulated...any lawsuit you should do it before a sale....after it closes you go after WHOM? New buyer has nothing to do with NMX BS and bad deals...it all gets cleaned up under court supervision... That is why Takeaction and a few others here that were involved with pumping this $hit want you to stay patient and not "Takeactionnow"..

[Calgary_AB]

now all of you are smart, especially takeaction joker....at the time you guys bashed me for saying "it was bad" you all said it's normal to cost over run...

[TicTacTo]

Rarely see a new complex chemical process in an old building, normally building is design around process and would have been more cheaper. But purchasing shawinigan was helping to make a balloon to raise capital at overprice.

[Takeactionnow]

Very expensive to take a reinforced concrete building and site and make big changes, but the acquisition cost was a deal, and the location is fantastic.

[TicTacTo]

yes you can fish during lunch ;-)

[Ciseaux]

Pallinghurst knew of the cost overrun last Fall when they proposed to come in at 25 cents per share. And the debt is now fixed.  My point is that they could make the same bid, minus the cost to fix the capital structure.

[TicTacTo]

You are right, there was nothing hidden to Pallinghurst when made offer and even get deep knowledge of NMX during following +6 months discussion ... and suddenly conpany is worthless according to minister ... Read litigation data with Nordic on pwc website, NMX try to cancel bonds in April 2019, failure to do it smoothly crash PG deal, almost sure otherwise IQ willl have support deal and help

[Takeactionnow]

What changed was lithium pricing (down), but high purity lithium salts have not been as adversely affected. The battery industry outlook two-three years out is very good, making the project an attractive one for strategic investors. This is particularly so in light of strategic minerals/supply chain issues, and the whole relationship with major supplier China question.

[TicTacTo]

only problem as in LACC past offer is dead, no leverage by management to impose rules of game.

[Takeactionnow]

The whole "cost overrun" (sorry, Mick!) story is odd, because, as you say, Pallinghurst was aware that the spend was high. At the time they simply didn't like the unsettled bond indebtedness issues. All of that could have been settled quickly by a multi-million dollar payment, and this mess might have been avoided. The problem was that there was no legal "obligation" to do

[Calgary_AB]

They knew about cost over run but they didn't know about all the stupid deals and promisses signed yet, they needed to do more DD After they found out all the things GB and his team made, they decided not to invest... Investers are interested in LI, GB presold it all and issued almost a billion shares, so what is left for any investor to make?