LLL 0.00% 50.5¢ leo lithium limited

Do people think the share price would be better, same, or worse,...

  1. MM0
    238 Posts.
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    Do people think the share price would be better, same, or worse, if they'd simply continued trading?

    I can imagine a motivation for a halt to stabilise the share price while negotiating an equity raise with Ganfeng, but all of that depended on pieces of information (e.g. extra duties being applied) that were not part of the halt announcements and would therefore presumably not have impacted share price in the interim, and that in any case Ganfeng had access to and could have performed its own estimations of share price impact from (and still happily invested at 2.5x current price).

    I feel it unlikely that "We've received a letter regarding concerns with DSO. We understand a number of African nations are reviewing DSO. We are halting DSO while we negotiate with the Mali government. We share their commitment to local investment and working together to build a new industry for Mali. Halting DSO does not impact our timeline or financials to production. Look forward to our updated mineral announcement." would have seen a drop below 85c. And if the argument is "well the rest of what has subsequently been announced would have impacted the price even more" the obligation to continuously disclose still existed during the halt.

    My suspicion is a big driver of the drop today is a response to the confidence and liquidity impact of the halt (and investors instructing brokers to sell as soon as they got the opportunity) more than the impact on expected NPV of the project from the announced facts themselves.

    Side note: while I'm generally supportive of the outcome which if I'm reading correctly is more or less the same ownership outcome for more money (though more direct ownership of Goulamina by Ganfeng and no stake in LLL, which I hope we don't regret later), I'm surprised the Board were permitted to effectively (by renegotiating the US$72m for 9.9% of LLL into US$137.2m for 5% of MLBV) sell equity in a subsidiary to Ganfeng as a major related party without shareholder approval given Chapter 10 of the ASX Listing Rules.
 
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