RE: Shocked silence?17 Sep 2019 23:45
I saw the announcement quite late and it didn't make good reading, that's for sure. At the 9p placing last year this was supposed to take us through to DFS and likely offtake agreement. DA did say earlier this year that greater detail was now required on the technical front which was a bit of a flag and that it might take a little longer than envisaged. Couple that with lithium market headwinds and weakness, plus a much tighter capital market for commodities in general, then with perfect 20:20 vision, one might have seen the obvious. Some did, and have said so.
Certainly painful, but I remain of a view that the company has to plan for and manage cashflow, even more so when it still is a net user of other people's. It must have foreseen a potential for a cash shortfall and Therefore take action to keep pots topped up. Main thing is that they continue to be prepared for the time when right. I am more concerned that they continue to act ethically and do all necessary work to a high standard as this will be required by the other members of the supply chain, and future funding partners.
Without looking back, I seem to remember that DA took his original stake in AME at around 2.25, and has obviously bought more at higher prices, so good for you Jonners on picking things up at this level. This will probably be the first time that DA will have been able to average down for a long time and it will e a note resting to see if any moves are made, post close period.
At risk of being accused of jam tomorrow, I still believe that the company is working towards the goals properly and this should be recognised despite the harsher current position, which ultimately will work its way through both as the ML's become fact and the DFS lands next year.
There are plenty of othe companies that are suffering similar difficulties across the commodity sectors, potash/lithium etc, we remain well placed as one of the sources in Europe and tides do change.
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