Have watched this one for a while and finally jumped in for the June ASX sales period.
Was hoping for a bit more selling but this announcement might be the moment when management finally
separates themselves from the unfortunate shell listing debacle, and turn the corner with some actual action.
They've talked up their exploration chops, so it'd be great to start seeing a few more test results these coming through.
A few skeletons in the closet here don't scare me and all the better if there is still a bit of meat on the bones
to produce an over-reaction to the scary tales.
I really couldn't care less about the specifics of the shell listing, or it's previous ticker's history as ARK
(although always disappointing to hear of the dodgy ways that prior company managements parachute away painlessly).
I think some people posting here have had a very legitimate grievance with the old company
but are now barking up the wrong tree. Just my opinion. I went looking for connections and couldn't find them other than that some of the early and most enthusiastic voices here, have also seemed to have been financially involved in the tenement sales, and perhaps not exactly in the same shoes as the retail investor.
Perhaps a bit too partisan and already well paid off to look at this investment prospect with impartiality?
Regardless of however this company arrived at this point,
I got on board recently very specifically for exposure to the Woomera tenements that this company has in their hands,
and whatever their plans are to define and exploit what is buried out there, still ever so slightly glowing a bit green with 1950s radioactivity.
The Oz Minerals deal also seems to put some firm-ish footing under the value of the company.
The lithium tenements on the books I consider a simple short term bonus as strong candidates for being flipped relatively easily to their respective local lithium big gun neighbours (GXY, PLS).
Lake Dundas with it's lithium/beryllium is slightly different, and perhaps will suit slightly different clients, although it could be something cashed-up Galaxy may be interested in.
WML’s holdings play into a period of further expansion for the established local lithium majors,
and reflect that the next period is one where the minnows start to disappear.
A recent Mt Cattlin tenement went for $600k a week or so ago, on land adjoining GXY and they have been steadily growing their tenements in the area. I'd say they're a reasonable chance for a deal at some point in the nearish future, and this price could be a reasonable benchmark for the other hard rock tenements that only need to be decently prospective, without much in the way of drill results.
WML's mag tech should be the perfect compromise in terms of providing those kind of geo results a fair bit cheaper than traditional methods.
The PLS tenements seems to have a rail-line going through it which could also possibly prove a bit strategic in the area, as things are already reasonably litigious and court battles between the different companies up there emerge over even minor details of access.
Mag testing and flipping and/or taking a cut in their future exploitation may be a decent business strategy to keep decent amount of cash coming in over the next couple of years.
Back the to the Lake Dundas announcement from today.
I haven't had much time to look at beryllium but it seems pretty sexy.
The potential for WA-produced lithium brine is also pretty interesting and exotic.
Far lower in concentration than the primo Argentinian deposits it may still appeal to either Big Lithium may who have the skills and money to do something worthwhile with it, particularly over time, as more local processing and technical skill capacity comes online.
Another reasonable prospect would be that it may prove an excellent location for alternative tech operations
that are seeking to bypass and improve upon the traditional dehydration process.
But yeah. Early days. Happy to sit on this for a while to see what happens.
Some bits of the company's strategy make it seem like a slightly unfocused lithium real estate company that hurried a bit late to the party,
and timing their IPO to coincide with global political unrest and a soggy patch for the lithium sector wasn't ideal.
Nor obviously was the ARK shell reboot full of happy memories...
They just gotta get moving now with their rigs and produce a bit of momentum.
This announcement today is hopefully one of a few to do just that over the next period.
However, of all the stuff they have, it is still the Woomera tenements that really interest me the most.
Obviously, that is also the original focus of the company too - hence the company name.
Those virgin tenements are prospective for a lot of really good stuff and have only now been made available to exploration.
Had a great chat with a geo from a drilling tech company who was more than excited about the area and it backed up all my hunches.
I'm also keen to have a punt on those tenements being where the company finds its fortune.
All the best for the new financial year.
Cheers
AC
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