Re: LAC and Ganfeng
in response to
by
posted on
Apr 24, 2021 03:47PM
Thanks, rkeeb. It is good to look back at the timeline for the developments at Cauchari-Olaroz and at the unfolding of the relationship at that location with both SQM and Ganfeng over time. The emphasis on the lithium mining expertise brought into the relationship by SQM and then sequentially with Ganfeng is fundamental to understanding the position LAC is in now that should eventually lead to a production date down the road, regardless of the fact that such a journey has been cursed with multiple delays and the can seems to be repeatedly subject to one can kicking after another.
As a result of the multiple "adjustments" for the production date at Cauchari-Olaroz it is impossible for present LAC investors to have any secure sense of veracity about any statement that LAC management makes now or in the future regarding the actual production date at Cauchari-Olaroz. It is that lack of confidence in management pronoucements about a secure start date for production that is fundamental in all of the different factors that have resulted in a roller coaster ride on the share price and that prevents the current share price from achieving a meaningful recovery back toward the all time high.
I think all hard core LAC investors believe in the ultimate recovery of the share price, but with management double talking repeatedly about the production date it remains an area where veracity seems to be subject to factors transmogrifying repeatedly any production dates verbalized by management. Truth in regard to the production date seems to be subject to a significant amount of "stretch".
Having taken into consideration the obvious delay in production due to inhibitory measures associated with the COVID-19 situation I do not believe that managements claim of No Mea Culpa is to be taken as rock solid and 100% truthful. I suspect there is more to the story than is encompassed in what could be just a convenient "excuse". Obviously the COVID-19 limitations required a preliminar shut down followed by a reinstitution of construction with only a fraction of the previous work force ( 900+ down to 200 or so ), but now as we approach the Winter situation in the Southern Hemisphere at an elevation of over 13,000 feet LAC also has the additonal factor of potential severe weather to deal with at the construction site.
If management wants to provide some positive reinforcement to long patient "Long" LAC investors , then the single best thing LAC could do in this circumstance is to focus totally on doing everything possible to speed up the remaining construction at Cauchari-Olaroz and replace their oft repeated practice of kicking the can down the road with, instead, a PR announcing that the Production Date has been shortened as a result of management pulling out all stops to speed things up and as a result Cauchari-Olaroz Production Date will be 3 or 4 or 5 months sooner than last projected by LAC management. Now that is a PR that every LAC investor and potential investor wants to read.
Surprise us, Mr. Evans. Pull out all the stops and move forward with production...
As U.S. Navy Admiral Farragut said on 5 August 1864 at the Battle of Mobile Bay:
"D... the torpedoes!! Full speed ahead!"
Just my opinion, but I think speeding up the Production date would be the single most beneficial thing the company could do for itself and for its investors.
Okiedo.