Ann: Leo Lithium AGM Webcast Details, page-5

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12/05/23

13:50

Post #: 67744231
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Originally posted by Red Baron: ↑

I see Liontown has hit $3 and good on them & their shareholders.

At $3 their market cap is $6.6b compared with PLS' $14.5b and our $760m
I'd say considering PLS has $2b in cash, LTR is fairly priced when compared to PLS considering they're a good 2 years behind them as we are.
Many consider PLS (including myself) to be undervalued, so both PLS & LTR still have room to increase.

There are many other tailwinds in the Lithium sector which we as well as other Li stocks will benefit from.

M&A, not only the offer on LTR but Allkem/Livent, and other smaller moves all bringing the sector to the attention of investors reassessing values.

We've also had the apparent bottoming of Lithium prices, with Spodumene still priced 3x our DFS assumed price at the bottom.

As I posted the other day, the $2.50 offer on LTR has rerated that stock as it continues to climb.
I don't think the present $3 is based on the market expecting a higher takeover offer, but because the initial offer caused the market to reassess it's worth.

This will flow onto us eventually. Back in March before the offer, most LTR holders were dumbfounded as to why it was still below prices from 18 months previous.

We are in the same boat as they were, still below IPO price despite the progress we've made.

At the moment we are trading at 11.5% of the value of Liontown
One thing is for sure, when both ourselves & LTR are in production, we will not be trading at the same discount and I'd expect LTR's MC to be closer to PLS' $14.5b by then.

Remember the old saying: Short term the stock market is a voting machine, long term it's a set of scales and I can tell you the scales are definitely not in our favour atm.

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'I'd say considering PLS has $2b in cash, '

I have never really thought that we might be taken over or at least an attempt made by another Li outfit, but gosh, that is a lot of money - they must be wondering what to do with it?

'As I posted the other day, the $2.50 offer on LTR has rerated that stock as it continues to climb.
I don't think the present $3 is based on the market expecting a higher takeover offer, but because the initial offer caused the market to reassess it's worth.'

True. But then i would think at least some in the 'market' would be re considering LLL based on the recent LTR valuations?

LLL Price at posting: 64.5¢ Sentiment: Buy Disclosure: Held
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