ASX Today, page-38637

I do agree in part, but that is just the SP value. We need to be mindful of what the MC is. Azure might be $3.70 for the SP, which looks high, but in actual fact, because they only have 390 million SOI, they have a much smaller MC, therefore it only cost a total of $1.7 billion to get Azure. For Liowntown, to offer $4, because there are 2.2 billion shares at least, the MC is much larger, and therefore $4 per share equates to a bid of $8.8 billion to get Liontown.

$8.8 billion compared to $1.7 billion. Therein lies the issue we are facing. Yes LTR is much much closer to production and looks the goods, but it’s a big $$ amount. What we need therefore is a very good JV offer. I cannot see a single company offer right now. It might take quite a while to peg back those $$ once in production. Maybe it is why we don’t hear of any offers for Pilbara. MC is way too high for anybody big enough to give it a go. Also, recently they have all been talking about junior acquisitions. Even Rio, a massive player, with a huge amount of cash, is being very coy about how much they want to spend. We wait with anticipation.

I definitely see an offer though. A big JV. When and how much for is anybody’s guess. Definitely $3 plus towards the $4 would be a great start, $4 plus a bonus.

GLTAH