RE: Not Gunna Be Enough Lithium16 Sep 2021 03:26
Convo on HC
BelgianBert : ?"Personally I believe CEZ will absorb the entire lithium supply. Don't forget they are the ones to decide where the lithium goes."
=> Do you think we'll get a fair ooftake-price / contracts ? What will happen when they have to raise capital to start the mining, major dilution?
I think EMH has a larger political risk than the other lithium-projects.. Hence the smaller rally/cap compared to other booming lithium stocks. Yet holding a large stake of my portfolio in this one because of the obvious opportities to tap the European Green Deal-Trillions.
ME : Bert , Cez WILL NOT absord all the Li supply , Very Very simple . Tesla will more than likely be the first offtake , their gig factory will start B4 any one elses . Minimum prices are currently being negotiated and would be surprised if they are under $15,000 a tonne . When it comes to dilution , we may not have as much as you think , any real forward contract for offtake will have a prepayment element to it . ie 8,000 tonnes pa 3 year contract with first year at $15,000 USD would give Geomet $120 mil toward their capex , on top of the $100 mil or so from the Euro Commission . Given EMH has already stated that financing with soft loans is already in the bag for 70% of Capex , Geomet may end up with suffient funds whereby EMH may not even need to raise for Capex at all , particularly if we can get two offtakes under the same conditions . Happy days to come .
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