As I have said before, and as anyone would logically conclude from a rational analysis of the releases on the Shenzhen stock exchange and by JRO, that JRO are not in a position to pay for off-take. JRO released the takeover speculation in order to attract potential financial (saviours) as a carrot that might help lure them out of (potential) administration - and it hasn't worked (to date).
The JRO takeover speculation was a furphy, it was tried and tested business tactic, that often fails, because good people do thorough research on these companies before putting money in to save them.
The board of AJM must have known what is happening for a long time, especially since a JRO member sits on the board, unless they don't talk.
The board probably had little option but to give JRO more time to attempt their restructure. In chinese, I believe the word restructure means rescue from imminent administration.
JRO will never take any spod from AJM, pure and simple IMHO, though the board must be still hoping (and they obviously know a lot more than me - thank goodness). What it means however, is that a new off-take arrangement with someone else would be at a lower price, given the current price of Lithium, and this would affect the AJM bottom line. It's just simple economics 101.
I can understand the AJM board's frustration, and I bet that some of them just want a takeover so they can get on with their lives, and their next project - and I can completely understand that sentiment.
I'm guessing Citi has had an offer or two, and the initial offers are probably somewhere within 40c to 45c a share. I understand now that there is not going to be a lot of money to be made by an investment in AJM, unless you have been a long term holder and your average buy price is sub 10 cents. For some of us like myself, at a buy out price of 40c, on a small investment, I'm only going to make 25%, whereas my current Canadian Cannabis stocks are up 350% and I've only owned them for 9 months, and they continue on their upward trajectory, not only that, one of them is giving me a dividend by distributing free shares to holders, it's great.
Good luck to everyone here, I personally think the price will stabilise around 27 cents over the course of the next six months, depending on how the market reacts to the JRO demise.
I think the board are being realistic, and have done a good job. Lithium has come way off, but the price has stabilised, and I'd assume it will stay close to these levels over the next year. All the big producers are doubling and tripling production, so they can offer good prices to the battery makers, effectively shutting out many of the small guys, and especially those in risky locations (unfortunately).
I'm as frustrated here as the board, and a lot of other people here, but lets be practical and rational and see the world Lithium exploration and production environment for what it is today, the bubble has come off, and now we consolidate here with what we have, and not much growth in the next 6 months, despite production - its a cold fact (and not necessarily a happy one, but it is reality).
Gw
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