Ann: Outstanding New Drilling Results at Pilgangoora-PLS.AX, page-63

Wombat2,

" It makes an under priced takeover offer seem more unlikely now."

I don't think so, only because "cheap" is now at a much higher price.

It probably narrows the field of who can do a takeover with the price rising, as we should now be talking billions for the company. current MC at 62c is only 775m allowing for full dilution of the new shares, for a resource that is easily capable of producing $US344m in cashflow with a 4mt/a plant, that could by 2020 be expanded to 6mt/a, if demand keeps growing for still over 20 years, and only using $US600/t as the price for the spodumene concentrate, which is very conservative in the current market.
$US344m = $A446 at 77c/$
At 6mt/a, in the future, we are talking nearer $600m cashflow, still at the $US600/t price.

My own opinion is that the phenomenal growth in the uptake of electric cars we will see over the next 5 years is going to keep demand for lithium rising, far faster than most "projections" by experts. Governments are starting with subsidies, like this from the Germans.....

"The German Government today announced it will kick off a €1 billion euro green-car subsidy scheme as soon as next month.
The scheme will deliver a €4000 rebate to anybody who buys a pure battery-electric car or €3000 to buyers of plug-in hybrid cars, and comes with a parallel program to open 400 electric-charging stations across Germany’s cities, towns and its network of autobahns."   ..............from......

http://www.motoring.com.au/germany-introduces-ev-subsidy-102205/

Charging stations across the country and people charging off their own solar panels (and battery storage) is the future.

We own what is likely the best lithium resource in the world, it could still be stolen off us cheaply. Hopefully we can stop that happening, so the real owners, the current shareholders, get the majority of the benefit.