AJM outlook and future, page-39

-How can the Chinese make a hostile takeover play against the hurdle of the significant long term holders?

-And what about the Foreign Investment Review Board? Greenbushes - largest producer of hard rock lithium in the world, somehow managed to end up getting shared between the US and China.
And both owners have been chased by the ATO in recent years to make that sting even harder ...

Spoiler : ATO investigates Albemarle and Tianqi

“Lithium giants Albemarle and Tianqi in ATO probe
Mar 19, 2018 —
US giant Albemarle and Chinese company Tianqi may have to pay more for lithium they purchased from the Greenbushes mine in Western Australia in 2015 and 2016 if the ATO audit goes against them.

Greenbushes is the world's biggest and highest-grade producer of lithium-rich spodumene rock, and surging demand for lithium has driven a doubling of revenues and profits over the past three years for the private company that owns the mine, Windfield Holdings.

Windfield is 51 per cent owned by Tianqi and 49 per cent owned by Albemarle, and the two shareholders are also the biggest buyers of Windfield's spodumene concentrate.

Those sales to Windfield's owners are the focus of the ATO's probe, and in a bid to avoid further trouble Windfield has sought approval from the ATO for an "advanced pricing arrangement" for sales to Tianqi and Albemarle in 2017, 2018 and 2019”. https://www.afr .com/companies/mining/lithium-giants-albemarle-and-tianqi-in-ato-probe-20180319-h0xneu

The government knows how valuable lithium is now. Is the FIRB really going to sanction a hostile takeover. Especially in the face of recent high level ‘strategic minerals’ discussion with America?

-I also read somewhere the Chinese way is to make friendly takeover bids rather than hostile ones.

-Also, in the event of a hostile takeover, who are they going to put in as management ? James Brown and team are doing a great job.

Are the Chinese really going to go out seeking bad publicity at a time when the whole China US trade issue is so delicately balanced, and Australia is the meat in the sandwich?
....That’s one thing that, rightly or wrongly, I am NOT worried about



It seems to me Altura has bought some security with the rights issue,
it’s expecting to do better next quarter,
it has the Sayona tenements to explore as well as the new L45/518 tenement,
the customers like the product,
it’s still improving production levels,
it has a great team from NRW who know exactly what they are doing
and, unlike FMG’s Christmas Creek mine, it doesn’t have measles .

But it still has plenty to worry about without adding a hostile takeover to the mix?
Cheers