1MC

2.33%

4.4¢ morella corporation limited

AJM, page-49

First 49 Last

Share
Profile

Follow
Hila

1,682 Posts.

14

07/10/16

12:30

Post #: 19695911
Share

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

Expand

Thanks binwood,
I am holding both and fan of merging. But wasn't sure what's the mechanism for this merging.
cheers,

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

0 Great analysis

Reply

Top Stories

BOE

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

Is oil undervalued?

MGU

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

NXG

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

VMS

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

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

VMT

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

GRX

GreenX picks up prospective copper project in Germany

DVP

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

WGX

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

There are more pages in this discussion • 11 more messages in this thread...

First 49 Last

Add 1MC (ASX) to my watchlist

(20min delay)
Last 4.4¢		Change 0.001(2.33%)		Mkt cap ! $10.87M

Open	High	Low	Value	Volume
4.2¢	4.4¢	4.0¢	$11.17K	266.7K

Buyers (Bids)

No.	Vol.	Price($)
7	308748	4.0¢

Sellers (Offers)

Price($)	Vol.	No.
4.4¢	166024	4

View Market Depth

No.	Vol.	Price($)
7	308748	0.040
1	18000	0.039
1	50000	0.037
1	16500	0.036
1	31281	0.031

Price($)	Vol.	No.
0.044	166024	4
0.045	114350	5
0.046	21739	1
0.047	45000	1
0.048	20833	1

Last trade - 16.10pm 02/08/2024 (20 minute delay)

1MC (ASX) Chart

AJM, page-49

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

Is oil undervalued?

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

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

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

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

GreenX picks up prospective copper project in Germany

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

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

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

AJM, page-49

Top Stories

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

Is oil undervalued?

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

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

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

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

GreenX picks up prospective copper project in Germany

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

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

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News