In this exclusive interview with INN, Nemaska Lithium CEO Guy Bourassa talks about the company’s financing shortfall and what’s next.
In a conversation with the Investing News Network, Nemaska Lithium (TSX:NMX,OTCQX:NMKEF) President and CEO Guy Bourassa gave a shining outlook on the lithium market based around global demand for high-quality product.
Speaking at PDAC, Bourassa explained that while China currently has an oversupply of technical-grade carbonate — in turn affecting the country’s price for the product — other parts of the world are still trying to lock down high-quality suppliers.
“The rest of the world — the western world, the car manufacturers, the battery manufacturers … the rest of the world [needs] good-quality product, and they’re struggling to find [a] good, reliable source of supply. So my outlook for the lithium space is very positive.”
Touching base on Nemaska’s recent financial shortfall with regards to its Whabouchi project in Quebec, Bourassa said that the company has no reason to believe budgeting will be an issue at this time.
“People have to understand that in the last 18 months we have been working, trying to finance this project with potential partners, potential offtakers, real offtakers, banks and the bonds,” he said.
“We [underwent] 10, 12, maybe 15 due diligence, coming with five due diligence reports by outside international firms — nobody raised any questions about the budget. There was even one of these reports that said we had too much budget, that it was large enough. So given the market at the time, given the information we had … we would not have done it differently.”
When asked if the company’s capital-raising strategy has changed in light of the Whabouchi development deficit — currently docketed at C$375 million — Bourassa said Nemaska’s shareholders will play a significant role in the company’s next moves.
“It’s going to be directly dictated by the large shareholders of the company, what direction they want to take,” he said. “We’re working hand in hand with the major shareholders to find the best solution for the benefit of the company, of course, and the project. But like I said earlier, the quality of the project remains untouched.”
Watch the interview for more from Bourassa on Nemaska’s capital raise strategy and what’s ahead for the company in 2019. You can also click here to view our full PDAC 2019 interview playlist on YouTube.
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Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Nemaska Lithium is a client of the Investing News Network. This article is not paid-for content.
The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.