Q: Production is a few years away but is this a golden opportunity to get in on the ground floor of a successful salt producer which was in short supply this past winter?
5i Research Answer:
SALT is pre-revenue and with no production timeline - it is still working through an updated feasibility study and financing. The salt shortage is real and we think this gives the name a good demand backdrop, but we would be cautious here as it is a small name ($135M market cap), it generates negative free cash flows and issues shares to fund its operations. For investors who are interested, we think position sizing is key.