Luanboo, thank you for reporting back on your meeting.
It seems that offtake terms are much more 'standard' than they were previously, particularly given the market-based pricing structure that the industry has adopted. Perhaps product testing/qualification and pre-payment terms, if the offtake partner agrees to pre-payments, may need to be hashed out but I don't think that should take too long, although probably more than the 2-3 weeks that some had hoped.
Did you happen to ask why drilling/exploration was the immediate focus? I would've thought we would at least wait until we were cashflow positive before we started spending millions of dollars on drilling and exploration. Now, if we announce a behemoth offtake that immediately requires DMS2 then I am all for it, but if we're just doing it to increase our LOM so we can have a pissing contest with the other lithium plays then I don't support that expenditure until we are cashflow positive.
A40 Price at posting:
20.0¢ Sentiment: None Disclosure: Held
