Q: Hi Team,
What are your current thoughts on this company? I feel like I have seen this before and the next thing is a large share offering to come...
Thanks
What are your current thoughts on this company? I feel like I have seen this before and the next thing is a large share offering to come...
Thanks
5i Research Answer:
The EV/lithium sector remains hot and the company's shares are doing very well. It has $18M cash, but no revenue, losses and negative cash flow. It is going to need more capital and an issue would not surprise us in any way. Insiders own 4% and have been net buyers this year. It is commission its first extraction plant but we note this is a pilot plant only. Often, tech does not work as well at scale. Still, we don't see major red flags here other than size, sector and capital risk. It should be considered highly speculative and it is hard for us to strongly endorse it at this time.