Ann: Allkem and Livent to merge - presentation, page-78

Let's put this in perspective.

The key thing is that in the US Livent trades at 6.4x while AKE trades at 3.4x 2024E EBITDAX.

Aprox Livent AU$7.5bil vs AU$8.2bil ($15.7bil).

So if the AKE component, raises to US standards in terms of ratio then the AKE component should become AU$16.4bil. That is AKE component should rise to AU$26 a share, if we were talking about equals.

So, if the AKE component was to rise, what happens to the Livent component? Especially when we consider the stock ratio into the new company. Expect volotility as traders works that out.

But, in day's term with AKE listed in teh US, the new entity should be valued at $7.5 + $16.4bil = $30bill rounding it nicely.

That is the payday. If things work out, we have just seen a doubling of our shareprice, we just might need to let the gremlins play out for a bit.