Interview with Alex Holmes, CEO of Plateau Energy Metals (TSX-V: PLU).
Plateau Energy Metals is a Canadian based company with assets in South East Peru: the Falchani lithium project and the Macusani uranium project. Holmes touches on the qualities of Plateau Energy Metals' management team, but with uranium and lithium markets performing as poorly as they are, the company's share price performance is far from surprising.
Plateau Energy Metals started the year with a share price of CAD$0.72, but has travelled along an almost constant, worrying slope to the current price of CAD$0.18. This is even more concerning when you consider the company was at CAD$1.50 less than 18-months ago. The company is at its lowest share price since it was founded in 2006. What hope is there of recovery?
As far as the commodities go, Plateau's hands are somewhat tied. Uranium and lithium need to come back into fashion, but the question is when? How long can Plateau Energy Metals survive? The company has just CAD$500,000, a sum that will almost certainly not be enough: the burn rate is CAD$50,000 per month. Fundraising seems inevitable, which will lead to further dilution. And what could they hope to do in this market. What does Holmes think?
Plateau Energy Metals has been in dispute with the Peruvian government regarding late good standing payments on 32 mining concessions. Holmes is insistent they were "down to the wire" because of issues of the ministry's own making, but weren't late. My dog ate it... My mom threw it in the garbage.
Holmes did provide some reasons to be optimistic. He claims there is a lack of spodumene projects in the market, like Plateau Energy Metals is dealing with, in development today. He also points to the macro story of lithium, and the strength of the small market size with an growth forecast trajectory. It is a similar macro story building for uranium.
Plateau Energy Metals claims to be led by an 'experienced leadership team.' There is no doubt the commodities may be relevant in the future, but we ask is the company relevant now?
Interview Highlights:
- Company Overview
- Falchani Lithium Project: What are They Doing with it and How Does the Market Affect Their Decision-making?
- Recent Case with Adherence to the 90-day Deadline: What Happened and What's to Come?
- Macusani Uranium Project: What Have They Got There?
- The Focus and Further Actions of Development
- Share Price Hit: How are They Getting it Back Up?
- Cash Position and Burn Rate
- Reasons to Invest in Plateau Energy Metals
Watch the full interview here.
Company page: https://plateauenergymetals.com/
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