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4.4¢ morella corporation limited

hey Binwood, do you think you could whip up a powerpoint...

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robmat72

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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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hey Binwood, do you think you could whip up a powerpoint...

Westgold sets its sights on top five producer status through merger with Karora

Week 31 Wrap: JORC rules to get tougher; RBA rate hike chance 50/50; US Fed Sept cut still the quo

Is oil undervalued?

Collaboration in a green (steel) future the focus for Magnum and Saudi partners

Commodity house Trafigura funds Develop Global's copper-zinc Woodlawn play with offtake deal in place

Vmoto sales plummet -50% YoY as weak demand in Europe & China stifles EV scooter sales growth

Uranium prices on the NYMEX are stable, but ASX uranium stocks are sinking on Friday. The answer lies in Kazakhstan

Cost blow-out for Rook I uranium project sees share plummet for NexGen

Venture to sniff out high-grade REE targets at Jupiter project, WA

GreenX picks up prospective copper project in Germany

Featured News

Buyers (Bids)

Sellers (Offers)

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hey Binwood, do you think you could whip up a powerpoint...

Top Stories

Westgold sets its sights on top five producer status through merger with Karora

Week 31 Wrap: JORC rules to get tougher; RBA rate hike chance 50/50; US Fed Sept cut still the quo

Is oil undervalued?

Collaboration in a green (steel) future the focus for Magnum and Saudi partners

Commodity house Trafigura funds Develop Global's copper-zinc Woodlawn play with offtake deal in place

Vmoto sales plummet -50% YoY as weak demand in Europe & China stifles EV scooter sales growth

Uranium prices on the NYMEX are stable, but ASX uranium stocks are sinking on Friday. The answer lies in Kazakhstan

Cost blow-out for Rook I uranium project sees share plummet for NexGen

Venture to sniff out high-grade REE targets at Jupiter project, WA

GreenX picks up prospective copper project in Germany

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News