All eyes are on AZS now for M&A
Global Resources is slurry grade of sub 1% , with thin and deep intercepts - stuff that Min Res works with LOL
DLI is not bad - but AZS would be the priceless one
Delta Lithium and Azure Minerals as the next potential takeover targets in the battery metals sector.
Stockbroking and advisory firm Argonaut expects lithium M&A activity will continue to run hot as major miners consolidate ground positions — as evidenced this week by Mineral Resources’ Chris Ellison taking control of Delta Lithium and Gina Rinehart’s Hancock Prospecting emerging with a 7.7 per cent stake in takeover target Liontown Resources.
“It seems clear that high stakes corporate games are being played by Western Australia’s mining elite to bed down hard rock lithium assets,” metals and mining research analyst George Ross said in a note on Thursday.
“Larger players have stepped up their corporate activity and we expect these consolidation efforts will continue.”
A day after Mrs Rinehart was confirmed as the buyer of the stake in Liontown as it is courted by US lithium giant Albemarle, Delta revealed Mr Ellison had been appointed its non-executive chairman, joining the board along with MinRes’ lithium boss Josh Thurlow.
The appointments followed MinRes’ emergence as Delta’s major shareholder last month with 17.4 per cent after a share market raid.
Mr Ross said that while Pilbara Minerals would remain the largest owner of in-ground lithium tonnes through its Pilgangoora project, MinRes, SQM, Wesfarmers and Hancock’s positions would all benefit from acquiring smaller players.
He described Global Lithium, Delta and Azure as “targets ripe for M&A”.
On Pilbara explorer Azure Minerals, Mr Ross said he believed the company’s largest shareholder SQM “must be considering its options”. Azure last month knocked back a takeover offer from the Chilean giant priced at $2.31 cash per share. SQM holds 19.99 per cent of Azure.
Azure has a 60 per cent stake in the promising Andover lithium project in the West Pilbara, with the remainder owned by billionaire prospector Mark Creasy’s Yandal Investments.
Yandal also holds about 13 per cent of listed Azure shares, with Mr Ross saying this would make Yandal the “kingmaker” in any Andover deal.
He suggested the Covalent Lithium joint venture between SQM and Wesfarmers to develop the Mt Holland lithium project, about 500km east of Perth, “could be expanded through shared acquisition of Andover”.
