EUR 1.41% 7.0¢ european lithium limited

Ann: EUR partners with BMW AG to supply lithium hydroxide, page-280

  1. 1,850 Posts.
    lightbulb Created with Sketch. 1624
    Oh boy, where do I start? You have a lot of questions that are best learnt from experience. I'll try what I can but really, you have enough queries here that encompasses four books I can so far think of on top of my head to address macroeconomic conditions, inflation and how to run a company... I have yet to count how many books I can recommend in terms of mining, raising capital for mining, and setting up a company specific to mining, let alone lithium chemical supply chain. That's a lot of "information" you are asking over a blog or forum.

    I will try...

    Volatility - when 708 investors invest, it's often through capital raise, and these having attaching options. The fact that the attaching option was exercised is a good sign, many we just let expire or sell at open market. If 708 investors purchase shares through the market, it's a big chunk and abnormally increases the share price - that at what you saw. Then traders will trade as they do taking advantage of the fluctuations and the share price often goes back down and normalise per fundamental supply and demand a market offers - liquidity. Proper investors don't care about that (we are talking cents here) and already have an exit strategy before investing (mine is four years vesting period before re-evaluation). Inflation doesn't impact the share price unless it impacts the prices EUR cost to operate, which it doesn't really, and even if it does, it doesn't flow to a company's share price - what you see in the market is not the intrinsic value of the company, that 708 investors consider. Before these markets, we used to buy over the counter, and can't so readily buy and sell even in the stock market unless you're on the floor. It's just easier now for traders. Investors does things differently. Perhaps the meme stocks demonstrated this best, as a stock price of a company is not necessarily its intrinsic value, but those stock did the opposite of what usually happen (usually stock prices are oversold) - but now we're talking trading not investing so I prefer not to dabble in that. Investors invest for profit/dividends, not trading shares. Today's macroeconomic conditions doesn't have material impact on my calculation at year 2026, and I'm not gonna worry about war in Ukraine. Further, Wolfsberg is not like Simandou (which 15 years ago I physically visited to see the commercial viability of the supply chain during feasibility studies and invested in BHP only to materially find myself disappointed today but I still make money from the company).

    CXO - no further comment. Thank you for the information. I wish that company well.

    When you have a lot of money to invest, the best due diligence is to see what you are investing in personally. I don't believe what I read on paper or in the news. So yes, I contacted the company as any 708 investor, and you get shown around what your money is buying you. By "I" I meant someone who works for me and scheduled it all.

    DFS is important. What I mean by not really, is it doesn't impact my decision whether or not to invest. Every early investor don't need to see a DFS before investing, it becomes a guide to how much money the company potentially could make out of the project. What's the point of being an "early investor" when you're waiting for a DFS before investing? It's important but not really. I care more about seeing other investors exercising their options more than I do about the DFS (that's just my personal opinion). DFS will come eventually, as they must, but personally I don't need it to tell me the company has products and lots of them that they can sell - I go see it for myself. I don't know how to quite explain this though. It's like when you see a mountain of gold, you don't need a DFS to tell you there's lots of gold, although you still need the DFS to actually mine it.

    Have you ever bought a million dollar house without first inspecting it first? I don't think any business person would be so careless. It's actually not a crazy idea, in fact, every proper investor does it - I literally don't know any mining investor who doesn't first visit the mine before investing. You enquire, you visit, you inspect before buying property, or in this case, portion of a business. It's all tax deductible and you get a bit of a holiday with it.

    People lose money when they invest in things they don't even know exist.

    I hope this gives some insight. Good luck! I'll check back again in a month or two. Right now, I've spent enough time on EUR, I need to focus on another.
 
watchlist Created with Sketch. Add EUR (ASX) to my watchlist
(20min delay)
Last
7.0¢
Change
-0.001(1.41%)
Mkt cap ! $97.59M
Open High Low Value Volume
7.2¢ 7.4¢ 7.0¢ $53.58K 753.4K

Buyers (Bids)

No. Vol. Price($)
3 316174 7.0¢
 

Sellers (Offers)

Price($) Vol. No.
7.4¢ 42857 1
View Market Depth
Last trade - 15.43pm 29/03/2024 (20 minute delay) ?
Last
7.1¢
  Change
-0.001 ( 1.43 %)
Open High Low Volume
7.4¢ 7.4¢ 7.0¢ 17511
Last updated 15.43pm 29/03/2024 ?
EUR (ASX) Chart
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.