Hi Munky, well this may be another baseless story but it was in the AFR today so you never know:
Citi suggests Rio Tinto could buy Arcadium Lithium
"Citi has suggested Rio Tinto could make a splash in the lithium space by acquiring ASX-listed Arcadium Lithium at around a 30 per cent premium to its current $5.5 billion valuation.
“For Rio we highlight buying LTM [Arcadium Lithium] could be a more economical option than developing its own lithium assets,” said Citi.
“On our scenario modelling, acquiring LTM at a 30 per cent premium would achieve a ~16.4 per cent IRR [internal rate of return] – a superior investment option to Jadar with a ~12 per cent IRR.”
Shares in Arcadium Lithium have collapsed in half over the past year to track lithium prices lower. They last fetched $5.06.
What is interesting about this story is that it resonates with @anatol and his recent post on Arcadium as the only other non Chinese possible JV mine partner for LTR, and the timing is also interesting leaking just after the LTR/LG deal which meant that LTR slipped through RIO's fingers who may have been hoping to pick us up at a bargain price if we faltered. Thanks to LG and the LTR Board we didn't. The weekly chart for LTM is also interesting, someone knew something was brewing yesterday with a big jump.
(20min delay)