This is a long post. Anyone who does not like 'dribble' should
ignore It. I don't want to offend anyone.
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I had such hopes for this stock....it is my largest holding.
I liked E3 because it was small enough that I could track its progress.
I was not too concerned on the slide from $ 5.72/share
because I made money trimming my holdings on the way up.
I have nibbled away as the stock price sagged, but now have
bought too many 'sale-priced' shares.
Now the share price is 37% of the high, it hurts to review my portfolio.
I do not think I am alone.
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Why do I still hold it ?
I continue to hold it because I believe that
it is a good investment. Unlike some posters, I do not believe
that Insiders have raided the cookie jar.
I believe that the share price is low because the market doesn't see
the potential of E3 being able to develop the resource.
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The current low share price means that an inordinate number of
shares would need to be issued to fund building the commercial
plant (unless a partner comes along).
What needs to be done ?
The first item is to develop a poison pill because E3's shares
are trading at a fraction of their value. A company like Posco or
Imperial would be foolish to partner with E3 when they could
take E3 over at a fraction of its worth. if a special shareholders meeting
needs to be held, it should be called. A number of posters have suggested
the poison pill but E3 has remained silent.
The second thing is a detailed plan to show shareholders that the
E3 is moving forward. I understand that some things cannot be
disclosed re future financing and off-takes. So I would be happy
to learn about the PFS, plant planning, and DLE situation. I don't
want to phone IR; this should be public information.
The PFS is what a market analyst, government, lender or potential partner
would need to determine whether E3 is going to succeed.
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The DLE situation, per news releases, is shrouded in mumbo-jumbo.
Is the 3rd DLE now being tested the same one that was initially pushed
to the side ? If not, what is the promise of the 3rd DLE ? Is there an issue
with the in-house DLE ?
Could E3 not produce the PFS now using the 'in-house' DLE and
alter the DFS if the 3rd DLE turned out to be a better method ?
Maybe not. The November NR stated that the 3rd DLE testing would
continue in 2023 and 'likely' continue into 2024. How long does E3
now expect the testing process to take ? Will the PFS look at economics
of each of the three DLE methods tested or only focus on the optimum
DLE.
Did the testing of the first two DLE methods find that the lithium concentrations
decreased significantly over time ? In other words, will the effluent need to be dumped
farther afield ?
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What is to be done with the pilot plant ?
I understood that the reason that the pilot plant was shut down was
because it was not generating any revenue (because product first needed
to be evaluated by users before it had any value).
When can we expect the users to be able to determine
if they have an interest in acquiring E3's product ?
I would have thought that there would be a ready market for E3's LHM
because it is so pure.
Could E3 now, or in the near future, run the pilot plant profitably as is and produce LHM.
Why not ? The plant is a sunk cost, E3 pilot plant revenues would only need
to exceed pilot plant operating costs. Depreciation can be ignored.
Several posters have asked the volume of brine processed
and did not receive a proper answer. What volume of brine was actually
processed at the pilot plant ? Surely the 500 m cubed outlined in the NR
relates to the extract from the DLE process.
Will the pilot plant need to be restarted in order to account for co-products ?
As there is a delay in producing the PFS, could the pilot plant be restarted
in the spring to test co-product extraction and data incorporated into PFS ?
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E3 recently stated that they were able to produce LHM.
What is the significance of who(m) would supply the machinery
to produce the LHM ? Does not E3 plan to produce the LHM
in-house ?
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I think that the share price will not
rise until the PFS is released. Before the last NR, I understood
that the PFS would be completed in-house in 2023 before being
released to the public in the 1st quarter of 2024.
As the PFS is such an important document, why wouldn't E3
release the PFS as soon as it was reviewed ? Surely some of
the chapters have already been approved.
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There are many other concerns. I think that the solution is
to be more forthcoming with shareholders and potential
investors.