Hi SF & Anne
Here's some thoughts and pure speculation, which "may" allude to the big picture in the context of AGO, AJM and PLS. Again, I emphasis, pure speculation.
Towit: About 6 months ago I had a serious look at AGO and came to the conclusion that it was a screaming TO target. Apart from their iron ore business their synergies with lithium gave me pause to think. They had deals with PLS in the form of Mt Francisco and DSO. They had a royalty deal with AJM. They had port facilities and tax benefits that would enhance the TO attraction. And last but not least, a host of Pilbara tenements said to be rich in lithium deposits. So I threw a lazy $15,000 in with three buys to average 2.3c. My thought being that one of the Big Boys like RIO or BHP, having missed the lithium boat, could pick up AGO for a song in a strategic first strike move into the lithium game followed by a TO of AJM, then followed by a TO of PLS.
In any case I was wrong about RIO and BHP. In that I think you, SF, were right in saying that their inclusion into the battery game would be by way of copper and nickel. Nevertheless, instead the lesser of the big boys in the shape of Min Resources, Forrest and Gina entered the AGO fray, so my speculation that AGO was a screaming TO target proved to be correct - other than my assumption of the would be aggressors.
Even so, given I'm a holder of AJM, the question hanging over one of their now dubious off-take partners being the cause of their falling share price (other than the general malaise of lithium miners) makes no sense, given there are plenty of lithium buyers to replace the fallen. Instead, I see Min Resources, or Twiggy or Gina maneuvering to pick up first AGO, followed by AJM - and possibly PLS.
Of the latter, I hope I'm wrong, given PLS has a great future in their own right. But in the back of my mind I'm always thinking: what would I do if I were one of the big boys looking to cement my position in a resource (lithium) that I had initially underestimated?
All in my opinion.
Expand
(20min delay)