Originally posted by Davisite
Considering Alex isn't running AGY and the SP weakness is across all the Lithium stocks this is a bit silly. Blame Alex for something he has done (or not done), but don't blame him for the market being down.
Far more of an issue is the history of PDN which Alex did run. Having looked into this I am willing to blame the demise of PDN on decisions made long before he came on board and there was not much he could do.
We should not forget what Alex's job is at G1A. He is a finance guy and his job is to raise the cash needed to mine and negotiate the off-take agreement(s) (as well as generally spruke the company). Ed and the rest of the team are taking care of the mine plan which seems to be all going well.
Personally I don't think G1A is ever going to mine a single ton of lead as it will be taken over by long before that by one of the large players. Tier 1 assets in tier 1 locations with the economics of Abra are not normally left to small companies like G1A. We want someone who can go toe-to-toe with the big boys and not get bullied into a bad deal. I have confidence Alex can pull off a good deal for us shareholders.
Agree with this Davisite (seems I’m always agreeing with you).
G1A might well get the finance in place first... but.. it will get taken out by a major at some point. Project is too good;
With an NPV of AU$528M and circa 370M SOI (Fully diluted) we have a NPV/Share of AU$1.42 with current SP of AU$0.17, that to me says this is severely undervalued
Finance secured (by debt only) we should be trading at around 50% of that NPV/Share value at a base 70c imo...
So we are basically looking at a 300% profit potential upside if they can secure capital in a sector with long history of institutional financial lending, investment and payability of tier 1 projects.. which is exactly what G1A has. Seeing AM is a money guy that tells me exactly capital is close
This is the way I look at it and that’s why I think this is a no brainer
Time will tell if I continue being right in my investment strategy or not
All IMO and DYOR
GL
(20min delay)
