I personally dont believe so as they will try to squeeze the junior miners out of Chile.
SQM time is running out due to the power struggle in Chile. There are other underlying issues such as environmental and corruptions within the government that the new government try to take over.
If the deal goes ahead, there will be lot of new term in the sale contracts to reduce their expansion plan due to environmental issues.
I believe the new government in favour Codelco. Rather leasing the properties to private enterprise they are moving to partnership so that more royalties etc.
Mr Borda has much more influence in the Maricunga region so my bet is that lot of positive news will come out.
Unfortunately investors dont want to take much risks at this stage until the dust settle or something materialised.
On the positive notes, we have a new Ceo and Managing director. We recruited a Finance director to fast track funding.
A company would not make this move unless there are things brewing in the background.
- Big key milestone is DFS, and i believe this should be very positive.
- Partnership with Codelco and submission of the CEOL. What if we partnership with Codelco then we dont need the CEOL right?- Possibility that we lock in the supply with Fulin Group, Samsung SDI and Molymet as Albenarle is struggling to adhere to their contract.
- The lithium sector is heating and the Chilean government will not let this golden goose go away.
LPI Price at posting:
27.0¢ Sentiment: Hold Disclosure: Held
