The rapid and unexpected outright sale by management/BOD of this asset to PLS may auger well for shareholders as the released JORC compliant resource was not anywhere near enough to support a standalone operation, the medium to long term potential growth here was minimal.
The sale price equated to approximately 25% (~$88t contained LiO2) of the current AJM-PLS average in ground value per resource LiO2 tonne of ~$362t, peer on peer value. A fair and reasonable sale price was achieved.
It may also indicate that management/BOD is very confident in what the drill bit has delineated at the Sededa-Portugal project and cashed up to fully focus on this project and perhaps other acquisitions in Europe.
IMO, there appears to be some current market/shareholder apathy to the management/BOD that can be negated just as rapidly with potentially significant exploration update/assay results from the Sededa project. A release is imminent as inferred by the company today and may be released tomorrow or next week. Drilling commenced on the 30th August.
A decisive and focused management/BOD has my tick of approval. Exciting times ahead for all, a new era has commenced. Bye.
Notes:
AJM 3/10/2016
Mcap $153M @ 12.5c fps (1232M fps, $22M cash)
Ind/Inf resource 39.2Mt @ 1.02% LiO2 (Prob reserve 20.3Mt @ 1.06% LiO2)
AJM value per resource LiO2 tonne (~400,000t contained LiO2) = ~$382t
PLS 3/10/2016
Mcap $535M @ 46.5c fps (1150M fps, ~$100M cash)
Ind/Inf resource 128.6Mt @ 1.22% LiO2 (Prob reserve 29.5Mt @ 1.31% LiO2)
PLS value per resource LiO2 tonne (~1.56Mt contained LiO2) = ~$342t
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