George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
Eric, I can't see the logic in selling in the immediate future. Once (if) substantial and consistent cash flows are established, the options for further exploration greatly increase. This is because SOU will become a credible proposition for farm -ins etc again, rather than the lame duck it has been for 2 years +. There will also be opportunities to re-structure debt on more favourable terms.
I agree that Tax issue prevents new investment. That's why I think it has been used to wreck this process. Personally, I would rather have half of something than 100% of nothing. The only way to achieve that is to go back to us shareholders.
GL must be looking at other ways to finance the bond debt. With a clear plan to first gas, the refinancing would normally be possible.
I strongly suspect the tax issue has been used as a wrecker on the refinancing.
That is why I'd rather he went back to us shareholders for a cash call, dilution or not.
Only the drill result will move this significantly up or down now. Hold on tight.
GLA