Westfarmer to take over Kidman at $1.90, page-174

Interesting, but unlikely I think. The financing at A40 is killing their profit and they have a bit of ramping up and bedding down to do (eg no fines circuit yet), and any takeover would need both a premium plus enough to clear the debt. They have a JV to be signed end June for a 50% split in an LIOH converter @ 100,000 t of spod into 15kt of LIOH - which by my rough back of the envelope numbers would bring in maybe 45m / yr (unless I completely screwed up the numbers) which would bump up the price a bit as well. I used to own a chunk of a40 but sold it after the merger and just before the price collapsed from 33c to 17c,

They are getting impressing recovery and quality numbers however 68% @ 6+%.with low FE and Mica, but it costs a bomb to run the operation at the moment. Always hard to say at this stage whether the high costs are artificial because of ramp-up and further development or it is just a high cost operation. Of course they might be able to do a share / cash offer, but that would be potentially dilutive of GXY share value, but would allow cash to pay down the debt which would add about 2m / qtr to their bottom line, and there would be some savings on corporate overhead...asuming that A40 would be cooperative.