Interview with Alex Holmes, CEO of Plateau Energy Metals (TSX-V:PLU)

Holmes has been managing the finances careful and negotiating to resolve the outstanding issues with the Peruvian government with regard to the licences on 32 concessions in dispute over late on payments. 6 of these related to the uranium assets, the rest on the lithium assets. It's worth noting that these lithium concession represent 45% of the resource, so are important.

There are a number of issues that need to be dealt with by Holmes and clearly the concessions is the key issue. Shareholders recognise this and has punished the company already. We wonder if it will continue to punish the Plateau. It's junior mining type problem. Money constraints lead to different types of decision making. And sometimes that means cash affects behaviour.

There is no doubt that Holmes is a smart individual. We like him. But he needs to unravel the sequence of challenges ahead of him to regain the trust of shareholders. He has two of the toughest commodities to push right now and that is Uranium and Lithium. If you have a longer term thesis on both and a strong constitution, you will need Holmes to persuade you that he has the assets that have value. We think he does, but time, money and markets will need to navigated first. They will need to raise money soon.

We like that Holmes has decided to park the Uranium asset for now, as they are financially constrained. The uranium market in turmoil and the reality is that the project is not going to attract funding in the current market. That's not to say that it is not a good project.

Holmes tells us he is being realistic about how to tackle the Lithium projects. He talks about a 100% version and a 'constrained basis' version. Still an $840M Capex required, for a $20M market cap company that should be interesting viewing. What did you make of his explanation?

Holmes says notes is a lack of spodumene projects in the market, and companies like Plateau Energy Metals are ideally placed to take advantage of this. There is no doubt that lithium is not getting the love it once was, and also that the future macro story is well understood, but we want to know how this company plans to position itself and give current shareholders and new ones the opportunity to make a return. Holmes replies.

What did you make of Alex Holmes? Is Plateau Energy Metals worth a punt? When are uranium and lithium going to make a comeback in to fashion? Comment below and we may just ask your questions in the near future.

Company page: https://plateauenergymetals.com/

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