I am playing catch-up with the FA of this stock ....
fwiw...
Commercially, it makes the greatest sense to amalgamate the entire area, set up one processing operation and get the full benefits of scale. IMO... if some sort of deal which is fair to all parties can be made then this will fly, everybody will do well and investment will flow unimpeded.
It seems the Chilean Gvt wants a cut, the producers want a high margin and the downstream clients want guaranteed supply [not mutually exclusive things]... if Tianqui is prevented from taking its stake in SQM, perhaps the Chilean Gvt can run an auction [which Tianqui could participate in] for someone to come in and effectively get a monopoly over the whole area... in that scenario there would be complete price discovery and I suspect every faction would get what they want.
just a bit of random shooting the breeze...
LPI Price at posting:
42.0¢ Sentiment: None Disclosure: Held
