I qualified my statement as a “gut feeling”, so please do no take it as a recommendation and definitely do what you think is best for you. I would normally agree with you in holding the stock and I fully realize it may be difficult to sell at present. I will be happy for all holders if the situation gets resolved (e.g., the capital rise) and the SP eventually surges. I will consider buying as I would probably be able to buy 2-3 times the shares I sold, so I am comfortable with my decision to exit ALTAF, and specially by recouping a bit with LAC. However, I will only buy ALTAF if I am fully convinced that the situation is resolved and looks favorable, which was my original plan and is exactly what I did before at a gain. This would be a possible positive scenario.
As for a possible negative scenario, please remember that the company is now under the administration umbrella. which puts Altura in distress and under control of others. This makes it difficult to get a good solution, merger or a buyer at a decent price. I am not sure if you are familiar with Aussie lithium miner A40. The company recently went through something very similar as Altura. while having a much lower debt (about $70M if I remember correctly). A40 ended up being liquidated/bought for pennies by Chinese sharks based in the Caribbean with stockholders getting exactly zero (100% loss). By the way, it is my understanding that the same nasty administrator (Korda Mehta) that was used for A40 may also be appointed for Altura’s process As such, it is possible that Altura may not recover from this as it may be a new entity. Due to Altura’s value an pressure from offtake RS that do not want disruption in supply, it is possible that there may be some soutiion or leftover value for current holders. However, stockholders are last in line after creditors, lawyers, Korda Mehta, etc., so there could be very little or nothing left after the administration process is over as was the case with A40.
I reiterate my good wishes to all here and I hope the company is able to return to its plan to do a capital rise or other good solution. I will mostly watch from the sidelines for now.
AIMHO DYOR and GLTAH
