While I get not wanting a hostile takover from happening, having...

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SecretPauly

274 Posts.

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29/05/23

10:18

Post #: 68009734
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Originally posted by invertedva: ↑

My initial reaction was "I don't want Ganfeng on the registry."
But reading the announcement, they have put in place significant protections to prevent registry creep or a near-term lowball takeover, which is good.
The rest of the announcement is very exciting - especially the signalling by Ganfeng about the scale of the resource and a desire to expand production ASAP.
I think the overall tone is important here. It seems Ganfeng have decided they cannot takeover LLL, and have settled for a long-term partnership. I think the European JV idea attests to this. With all the geopolitical tensions with China, Ganfeng might see a JV with an Australian company is important against getting around political obstacles in the EU market. Put differently, if they own Goulamina 100% by taking over LLL, they may face further obstacles, especially in terms of setting up processing plants in the EU.
Finally, awesome that the capital raising is being undertaken at a premium. So sick of insider discounts. It also, again, displays Ganfeng's long-term commitment to Leo, as they no doubt are confident that (even paying a premium) they will get multiple returns on their investment.
So my mood went from cranky to happy in the space of 15 minutes

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While I get not wanting a hostile takover from happening, having the undisputed #1 lithium chemicals company being the sub holder of your lithium 'junior' (lol) is the biggest vote of confidence any company in this industry can get. And we NEED investor confidence more than anything.

We have a titan of a resource, an MD who took Galaxy from a minnow to a merger with Orocobre and some of the lowest cost production on the planet. The only thing we missed until today is a cornerstone investor that wasn't FFX.

I have a feeling many players in the lithium industry will have taken notice today.

Last edited by SecretPauly: 29/05/23

LLL Price at posting: 81.0¢ Sentiment: Buy Disclosure: Held
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