News: ESS Tianqi Lithium Terminates Plan Of Acquiring Essential Metals, page-65

Sorry my post repeats some above...I wrote it an hour or so ago...

I listened to the TS interview right through. It was as though he was trying in invoke a "get out of jail free" card rather than being direct. A few observations:

The idea that the offer was compelling simply because the recent trading range was around $0.34 and there was a premium ignores the possible reasons. Saying that always the traded price represents fair value is false despite the "independent expert" coming up with $0.37. Indeed if that was true value, why would TLEA volunteer 40% more than fair value?

The assessment by the board that the lithium supply/demand outlook indicated softness, and then stating that it has been borne out by recent pricing is an enormous generalisation. Indeed spot pricing of Spod has reduced, as has carbonate. But hydroxide which is effectively the refined product of spodumene has held up quite well and we also know there are various short term artificial factors that have intervened, like the Chinese destocking which is clearly temporary. The Independent Expert selected a Spod price that is light years from current reality even allowing for weakness in the refined product, which mostly reflects squeezing of the refiners margins rather than miners. Try reflecting on the recent bid for LTR (not mentioned) and the underlying outlook that the world's largest lithium player clearly has.

When asked where to from here(?), the very first remark was that the company had lost time because of the scheme. In other words they must have been writing their shopping lists on how to spend the proceeds of their incentive stock rather than getting on with business.

MIN has not contacted him(?)...surely he has attempted to contact the obvious potential partner? Similarly no contact with TLEA? That beggars belief. I would have been talking to the CEO that very minute, and indeed beforehand as I'm sure they new what the outcome was going to be.

There are others....like the value that MIN obviously sees having paid a large premium to the offer price, and given the experience of the new strategy guy from CXO includes DSO has that been seriously considered as a short term prospect?

I was quite underwhelmed by it, but in a way not surprised.

Regards

DF