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This article from today will fill you in:
http://seekingalpha.com/article/3967654-goldman-calls-lithium-new-gasoline-titans-industry
This correction is due to insiders stirring up a conspiracy theory involving SQM dropping LAC like a hot potato once the Chilean govt gives into them. Don’t buy it. This diversification is important to SQM and their future. The big three know they can’t stop juniors forever. It’s best to diversify now and keep their piece of the pie healthy.
Some of these folks that are spewing this story are doing so in disguise to buy shares cheap. And in the name of those people, I have increased my position this morning :)
All in my opinion.
This little dip is a good buying opportunity.
i'm surprised the pps is holding at .02 when they are clearly diluting. interesting...
If we are going to gain 5-10% everyday, your retirement may come early
LAC is positioned be the next company to actually start producing Li...so once they have that going for them people will start to take their NV site more seriously...assuming they hold on to it and complete the new feasibility study. They should know what they are doing by that point.
However, we'll see what hoops these companies have to jump though to get a mine up and running in the good ol USA ...
Here's a link to a Reddit thread from yesterday about the oilprice.com lithium story with ~700 comments...if anyone would like to kill time and read opinions.
https://www.reddit.com/r/Futurology/comments/4f3bqc/tesla_and_other_tech_giants_scramble_for_lithium/
I bought at a wide variety of prices...but, yes, those at low .20s look awfully nice :)
That's true, and they should diversify their supply base. But what do the agreements with Pure and Bacanora really look like? Do they have to supply Tesla with Li if they reach production? Why would they follow thru if they can sell their product to others for much more?
Seems to me that Tesla (or any other company seeking large quantities of lithium) would have to pony up some dough to ensure that a supply goes to them at lower than market prices for the long term. They'd need some skin in the game with at least one or two projects. Because it is possible that Pure or Bacanora doesn't ever produce Li...or not as much as planned, etc. Same with any junior, obviously.
Tesla just raised about that much cash money in Model 3 deposits. Maybe they should just dump half of that into a joint venture agreement with a junior in NV to get control of one of their costs. The price of Li is exploding, and they have to keep costs down to make the Model 3 a realized success.
Something along the lines of, we'll contribute half of start up costs and take half the production...you do what you want with the other half at market prices.
Maybe that's coming for some junior Li company...or maybe Apple, Google, Ford...etc
Anyway, if that happens to a junior then said junior will have no issue raising capital.
amazing volume today!
after hours trading at .632
i think we continue upwards tomorrow. very exciting time for all of us
For comparison, Orocobre is now an almost 500 million dollar company. Yes, they are already producing but they are having some trouble...which is expected with any new venture. And they have some other revenue from Borax.
Their plan is to ramp up to 17,500 tons per year.
With this kind of market approval, it is no wonder that LAC pps is soaring. We are at 150 million market cap. It is easy to see a billion dollar company within 3 years if goals are met. Hello SQM.
Yes, I'm LONG here.
Keep up the good work everyone! Thank you for all the info. What an exciting time for all of us :) The more I look into the SQM deal, the more I am seeing a big light at the end of the tunnel here.
Tesla saw 276,000 people sign-up to buy its newest all-electric Model 3 sedan — in two days.
WOW...I think we are in the right industry!!!
Not until it gets to trips...then you buy. Then wait for the pump.
This stock can explode at any moment, although the last newsletter makes that seem unlikely until another round of dilution.
Still love the SonCav tech though! Let's go LEXG!
This company has produced one thing VERY well
....disgruntled former investors!
This is an important point. With the ever increasing price of lithium, I'm glad LAC does not have to sell under market price. Although they are free to do so if they are offered some sort of incentive from a company like Tesla. I'm curious about the fine print of the contracts that were signed with Tesla by Pure & Bacanora. I'm also curious about Bacanora's progress with their clay deposit.
I'm LONG and willing to wait. Although I don't think it will be 3-5 years. I think with SQM as the partner it will be 2 years. The entire model for getting this going is just a few hundred miles down the road.
With just a sniff of actual production looming, the PPS of LAC will increase greatly. But I do appreciate your scepticism, it keeps us honest. I'm considering starting a position with SQM, but I'm in the process of DD on their recent troubles.
I also thought it was strange that they didn't mention Nevada. I listened to the replay so I couldn't ask. But what I would have asked is the following...If I was a LAC shareholder before the merger with WLCDF...what exactly did I get out of that. I'd just like an answer now that we have some perspective, out of curiosity.
Your second point is valid. But I would note that now with SQM as a partner, financing should be easier to come by...just by association. If you remember, Tom said that getting financing from a bank for a junior minor is very very difficult. And the equity they got from geological resources was essential to being taken seriously enough to strike a deal with a major player like SQM. He also said that they did not draw down on the loan and that no interest debt was being accrued.
I expect an outline of detailed milestones coming soon. And I expect, with SQM and the new board member's guidance, them to hit most of the milestones on time...or close. Hence the de-risking.
Some items in the conf call:
SQM did intensive due diligence on the validity of the project.
SQM was chosen for many reasons, but the most important was to de-risk the project.
LAC maintains a cordial relationship with POSCO, but decided SQM was best for the shareholders as the major partner.
The Argentina project should produce 40k t lithium carbonate a year for 40 years. And 80k potash a year. LAC gets half the production, so 20k and 40k respectively. This amount is actually equal to what the 2012 feasibility study claimed anyway for production (20k/year).
Project financing still TBD...both partners need to be responsible for their half.
The board of directors for the Argentina project consist of 2 SQM and 2 LAC.
I think production was mentioned as 2018. But i wasn't sure about that.
No mention of Nevada, or Hecatone...although that was not the purpose of the call.
Overall,I could sense the excitement of Tom and John. Pretty cool.
Impressive group of folks. I like it.
Patricio de Solminihac, Chief Executive Officer of SQM, commented, "SQM is committed to the lithium business, both in Chile and abroad. The Salar de Caucharí is a great complement to our existing lithium operations in Chile, and it is located just a few hundred kilometers from the Salar de Atacama. We expect to have similar production processes at both sites, and as a result we should benefit from operating synergies."
Mr. de Solminihac continued, "We are confident that this joint venture will generate value for our shareholders. We believe that SQM's years of experience in the lithium business, and our vast distribution network, combined with LAC's knowledge of the Salar de Caucharí and its stakeholders, will prove to be key advantages that will contribute to the success of this project."
SQM is an almost 6 billion dollar company. In order to contribute to shareholder value, they must see serious $$$ potential in this project. I don't know what this means for POSCO's lithium efforts, but I know what it means for LAC...we are in the game.
http://finance.yahoo.com/news/lithium-americas-sqm-announce-joint-181808950.html
Yes it is a great day
Congratulations to all the Longs here. This is great news. It is obviously very difficult to get to production as a junior. We are now almost guaranteed to get there. Yes we gave up a large portion of this project, but think of the knowledge we absorb through the process of building the plant and ramping up to production with the folks at SQM. It is invaluable! Look at the issues Orocobre is having ramping up production. We take this project and apply the lessons learned to NV and any other projects that present themselves in the future. We gain so much from this LONG-TERM. Of course the day traders are disappointed.
Beautiful day for a LONG!!!
VERY interesting!
What a nice day for LAC!
As might have been expected, there was an overreaction to the news yesterday and some took profits. No big deal. But the market came to its senses today.
As Billy says...I'M HOLDING LONG
Nothing wrong with that, hope you made some money. If it continues to dip, I will add to my position.
No matter what, no other company is closer than LAC to being the next company producing lithium for sale.
This is a historic year for LAC. It will be very exciting to see the development in Argentina. I believe in what they are doing, big time.
They also have a huge opportunity in Nevada, and have begun the necessary steps to make good on that opportunity by re-investigating the proper engineering channels to make that effort a success.
But it is very exciting for the company to be able to prove itself to the world in the next 12 months in Argentina.
March 2016 Newsletter
PHOENIX, AZ / ACCESSWIRE / March 23, 2016 / Lithium Exploration Group Inc. (OTCPINK: LEXG) CEO Alex Walsh updates shareholders on company activities.
Dear Shareholders,
After many weeks of restating prior financials and bringing the September and December 10Qs up to date, as of yesterday we are finally current in our SEC reporting. It is not only important for our shareholders but for prospective investors that we continue to stay current and, now that we have been through this rigorous process, I am confident that we will continue to be fully reporting and current for the foreseeable future.
We have not been idle during this process. I have been in constant communication with our technology partners at SonCav on the preparation of both the water and oil units for further testing. As you may recall, we took possession of the units in January of this year and have been working hand in hand with SonCav. Unfortunately, due to the continued delays regarding our filings, we have been unable to fund the required assembly expenses to date. We now have a good plan on what needs to happen, and are going to get back to work to expedite the testing process.
I have also been working with a partner in Texas to evaluate potential oil and gas investments from Texas to Calgary that would fit with our larger goal of field-testing the water and oil units this summer. I have found a very attractive project and have been in active negotiations for the past six weeks. Now that we are current and the technology units will be readied for testing, I will be able to pursue this more aggressively and plan to find a field where we can buy in as a working-interest partner and deploy our technology units.
I appreciate all of your patience and look forward to getting the company to the position where we should be, and where you expect us to be.
Sincerely,
Alex Walsh
CEO
Lithium Exploration Group
Lots of significant information in today's press release. However, most of this was covered in the December investor conference call. Changing the name was mentioned. Hecatone shipping product in Q1 was mentioned. And you could see the writing on the wall for Jay as Tom Hodgson said that the Nevada effort could have been run better & more expediently. I'm not saying Jay was this or that...but we can see from this press release that strategy is changing. And that can only be positive as we've seen little in the way of getting the Nevada site going.
I think we've got a very ambitious group running the show right now and I like it :)
That could very well happen at any moment!
It has before!
wow what volume today!! is something brewing?? :)
Orocobre is 350 million dollar company and they can barely get 700 tones produced a month at this point. The PPS will rise nicely when WLC gets a deal announced. Then, since they have two huge separate deposits...if they can get one running successfully then people will start putting the NV site's value in the PPS ahead of time. To the moon. Long way to go and lots to accomplish, but they are miles ahead of almost every other junior.
good day here, nice bid.
Elon Musk still looking for NV lithium?
http://www.energyandcapital.com/articles/elon-musk-lithium-investing/5344
You can see a glimpse of his plan every so often in the media headlines. You might have caught on last summer, when Musk made his first move to shore up the necessary lithium supply to keep his Gigafactory running smoothly. It was with London-based Bacanora Minerals and Rare Earth Minerals.
A few months later, however, Elon inked a supply deal with a tiny lithium company in Nevada, located just miles away from where he broke ground for the first Gigafactory.
If there's one thing I'm sure of, it's that he isn't finished — not by a long shot!
In fact, I think he's just getting started, and now the cat is out of the bag that Nevada is where he's looking for more lithium.
Argentina settles debt with creditors:
http://www.reuters.com/article/us-argentina-debt-idUSKCN0W2249
SonCav has updated their website.
That great video is now featured on the home page.
We could have LIFTOFF very very soon.
http://soncav.com/
Go LEXG
getting interesting here!
agreed and it could get very interesting here very soon.