Originally posted by Silent-Bubbles
For those who think the chances of Industry consolidation and/ or a takeover are fanciful thinking and not possible ....particularly from these lower SP price levels - clearly you have not been paying attention in the classroom to what's being said. Even more recently from some of the Industries bigger players and ' Big Dawg ' CEO's
To recap - there was this one line statement taken from Galaxy Resource's Quarterly Report - December 2018 in regards to it's section headed
Industry and Market Update :-
" The current state of the lithium market presents a firm foundation for price recovery and potential industry consolidation. "
Then as recent as only a day and a half ago in there was an article in the Canadian Financial Post . The article was pricipally about Nemaska Lithium and the Canadian Lithium Industry. As we all know ,
Nemaska which which is double the size of AJM is headed up by Chief Executive Guy Bourassa who was quoted in the article in saying :
“If you look around, there are no other real projects besides us and Lithium Americas,” he said. “The more we advance the project, the more we do build, the closer we become to being a nice target.”
I know if I was a large Lithium Predator circling the smaller Industry players - I know who I would prefer if it came down to Nemaska or AJM . The answer is really quite simple . You go for the One who is producing , who is cheap with lower debt and most importantly , the one with the largest Lithium resource expansion upside. And clearly you have to say that is right here in the various Li land packages of Western Australia.........
All well and good
Now with the money coming in from this CR they might well reduce debt levels buy producing more Li and maybe even be renegotiating a better debt deal elsewhere. The more debt we pay off and the more we produce might even come onto someone's radar. “The more we advance the project, the more we do build, the closer we become to being a nice target.” same same......we have 3 years to make an impact and if the impact is big enough we might have to field some rogue TO offers...we have to remain vigilant as to what Directors true intent really is......unclear atm IMO
All speculation........this Li space has a long way to go yet and we are slowly ticking boxes.
