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robmat72

189 Posts.

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07/10/16

12:29

Post #: 19695869
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Originally posted by binwood ↑

PLS don't have the cash to buy AJM and debt funding it would be stupid. I think the best possible outcome would be for them to merge on a 2 PLS for 5 AJM basis with the two companies sharing exec positions. I think you could get a good mix from the two current management groups.

This would give PLS a touch over 1.6bn shares on issue. You would then do a 4:1 consolidation of shares to get that down to about 400m. I think by doing this shares could easily push up to about $2.50 a piece (after consolidation) and value the combined entity at around $1bn right now.

You would start immediately as a 4Mtpa operation and do it from AJM tenaments as they have no ROFR and most mining leases etc are locked down. You would then use the time afforded by that to lock down all issues that PLS have in time to need that resource. You then move to 6Mt and 8Mt over the next 5-10 years and make a motza.

We have AJM with good offtakes. You could offer ON double what they want now and that is 2Mt of offtakes locked. If GLC stands that is ok and sign another one or two.

Combined entity would need about $200-220m more in funds for Capex. You could get half of that by prepayments from future BOA's and debt fund the last 100m. The combined entity could repay that debt in year 1 from FCF and then you have a debt free, low cost producer who owns the majority of Pilgangoora.

It makes sense to me

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hey Binwood, do you think you could whip up a powerpoint presentation on this with some pretty pictures and send it both companies, this would be a great forward direction...

AJM Price at posting: 13.0¢ Sentiment: Hold Disclosure: Held
6 Upvote

0 Great analysis

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Last 3.0¢		Change 0.000(0.00%)		Mkt cap ! $8.364M

Open	High	Low	Value	Volume
3.0¢	3.0¢	2.9¢	$17.16K	584.2K

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No.	Vol.	Price($)
1	81157	3.0¢

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Price($)	Vol.	No.
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No.	Vol.	Price($)
1	81157	0.030
2	347644	0.029
3	92565	0.028
1	61938	0.027
1	37074	0.026

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0.031	374484	6
0.032	92168	2
0.033	378549	3
0.035	200000	1
0.040	40000	1

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AJM, page-48

Tonight's US CPI data could set the tone for November. What are markets expecting?

NRW Holdings inks $109M deal with BHP for works at Jimblebar

Issues emerging as Australian companies tackle critical minerals challenge

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The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

ASX Market Open: ASX200 to open flattish after Wall Street weakens on hot US inflation data | October 11, 2024

Octava Minerals joins the antimony train with high-grades on the radar at Yallagong, WA

Sunshine Metals kicks off copper gold drilling at Truncheon; Highway East targets

Court process clears way for ARB to buy up 4 Wheel Parts business in the US

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

AJM, page-48

Top Stories

Tonight's US CPI data could set the tone for November. What are markets expecting?

NRW Holdings inks $109M deal with BHP for works at Jimblebar

Issues emerging as Australian companies tackle critical minerals challenge

Ragnar impressed by 11.55 metre pegmatite in Sweden, anticipating further mineralisation

Smallcap Artemis Res' jumps 23% on six digit gold grade rockchip find at Titan

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

ASX Market Open: ASX200 to open flattish after Wall Street weakens on hot US inflation data | October 11, 2024

Octava Minerals joins the antimony train with high-grades on the radar at Yallagong, WA

Sunshine Metals kicks off copper gold drilling at Truncheon; Highway East targets

Court process clears way for ARB to buy up 4 Wheel Parts business in the US

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News