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$9.83 allkem limited

Ann: Allkem and Livent to merge - presentation, page-265

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14/05/23

21:24

Post #: 67767316
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Originally posted by TomyHH: ↑

First, I think the deal is good for both, for Allkem and for Livent shareholders

As Livent shareholder my first thought was, oh no, we get the difficult Olaroz asset (you probably know better than me, what I mean)

Taking the pure numbers is not a fair comparison I think

Livent‘s Hombre Muerto asset should be more compared more with Sal de Vida from it‘s quality. Always liked Galaxy for Sal de Vida. It is great that both assets will now belong to one company. From the resource size, Hombre Muerto is larger than Sal de Vida

Note: there is a mistake in your table: Livent plans 100.000 ktpa for Hombre Muerto

For Nemaska vs James Bay I would take the same argument (like shown in your graphic above)
Nemaska is much larger and higher quality than James Bay
I think Livent takes a clever approach by sharing the risk with the government
My expectation is that Livent will take 100% ownership in the long run
The CEO already mentioned that Nemaska is capable to produce 100.000 ktpa

So Livent can be also be seen as a 200.000 ktpa producer by 2030 with customers like Tesla, BMW and GM and many upstream capabilities

As Livent shareholder I could argue for 50/50 based on these arguments

But current realities are different

As I like Sal de Vida a lot and Nemaska/James Bay makes a lot of sense I will vote for the 44/56 deal

I think at the end both shareholders will profit. Maybe Joe is right and by 2026 we will be bought out with a nice premium

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Hi Tommy - nice dollop of misinformation there.

One example: you say "Nemaska is much larger and higher quality than James Bay"

Allkem owns 100% of James Bay which has an ore reserve of 37.2Mt at 1.3% Li₂O. So that's 37.2Mt at 1.3% Li₂O to Allkem.

Livent owns 50% of Nemaska / Whabouchi and Whabouchi has, by one account I saw, an ore reserve of 36.6Mt at 1.3%. So half the reserve and similar grade.

What a drongo! Say no more. Straight onto ignore you go.

AKE Price at posting: $15.14 Sentiment: Hold Disclosure: Held
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