RE: Interview16 Nov 2023 12:06
Robins,
1, There is nothing that RRR could do that would satisfy the trolls: that is not why they are here.
2. Previously, it was things like they will never get the Kenya licences renewed, ALR doesn't own the Zim licences, someone else owns them, the licences will be cancelled, there is no lithium and so on.
3. The next thing was that RRR/ALR would never export: well it has and so it moves on to the next thing. So now it is the wrong type of exports.
4. The MOST IMPORTANT thing is that ALR/RRR can export and has shown it can and that it has. Listen to the previous interviews with Belly: very few people can export.
5. Other companies have stockpiles at surface and can't export: they need cashflow urgently.
6. Belly said quite clearly; judge us on how much we export. Well now the exports have started and they will gradually build.
7. No point spending millions on a plant that doesn't work and going on about how material is in the ground or how much you are going to produce: show us how much you have exported and/or sold and what is your margin?
8. If we can buy hundreds of thousands of tonnes at less than the cost of production and sell it profitably in China, what is the fetish about production?
9. Remember, people like Prem and KOD have entered into forward purchase arrangements for serious money: one has wasted the money on a plant that doesn't work and the other has said it will do the same.
10. If ALR/RRR can supply hundreds of thousands of tonnes in China subject to a working capital facility, why would anyone think that funds would not be available?
11. Forward purchase agreements might seem easy money when they are signed but they have lots of covenants in them (ask Prem) and before we sign anything we need to KNOW that we can meet all the covenants. No point in engaging in wishful thinking or magical thinking.
12. How will things proceed? Well it is a suck it and see thing. The thing is to get the pipeline going and build up to a few thousand tonnes per month and at some point we can step it up into serious volume. When will that be? No one knows at the moment because it is all about learning about what needs doing to step it up. PS those bags in the photo contain one tonne each. So we have 200 bags at the moment.
13. Separately, the real money is in lithium carbonate not exporting Spodumene. That doesn't mean that both can't be done. I would expect that lepidolite is used for the lithium carbonate plant and spodumene would continue to be exported. It looks like lithium prices are starting to inch back up. The current pricing is an anomaly, it is below the cost of production and so should revert to the mean in due course.
14. Once up and running properly ALR will likely take care of RRR's requirement for cashflow; I expect Soma Gold and Faso to chip in too.
DYOR
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