Mates thats the exciting parts there are so many variables and optionality once the official discoveries is made
AZS could buy the 40% off creasy
SQM could buy the 40% off creasy and become a JV with AZS
SQM could buy the whole company or have a bidding war with another giants like Albermarle to take us over completely. That would be a nice pay day
I am thinking the ideal and most probable scenario would be thats SQM will buy out creasy and become a JV with AZS. This will be matching their existing deal at the Mt Holland lithium projects which is the joint venture company jointly owned by Wesfarmers and SQM.
In any cases the potentials here is tremendous. Did you see this news either?
IGO has struck an agreement worth AUD$136 million to acquire a 100% stake in Essential Metals’ (ASX: ESS) alongside the Chinese Tianqi Lithium Corporation via their joint business venture, Tianqi Lithium Energy Australia (TLEA)And guess whats mates?
ESS deposits is a measly 11 million tonnes [11Mt]. Its one of those small deposits the MD was talking abouts [the ones that SQM was not interested in].
AZS has the potentials for +100Mt deposits and it already has a JORC nickel sulphides deposit and copper and the market caps is only what 130 million market caps now? This is an undervalued multi commodity projects with tremendous upside potentials IMHO
There are only 2 other deposits of this kind up for grabs at this stages globally [the rest are the small deposits]
One is LTR and that is valued at 7 billion dollars pre productions market caps and just had an offer to be taken over by global giant Albermarle
The second one is canadian PMET and that is valued at 2 billion dollars pre productions and pre JORC MRE market caps [that is right. they dont even have a resourse estimation but the punters value it already at 2 billion because as i mentioned previously you can get a rough idea of the size of the deposits from the pegmatites size and strikes]
If AZS beginning to look like what SQM thinks is here [+100Mt deposits] then the valuation being a minimum 2 billion dollars market caps is not unrealistic at all infact that is conservatives IMHO. Being right here in the outbacks of WA this deposits will be more attractive than the canadian PMET and can get into productions much quicker than PMET. That is why LTR has a higher premium tags
GLTAH. All signs to dates are pointing to this dream turning into a realities. We just need to waits for confirmation on the drill bits and assays results. One thing for sure no company crazy to do 40 thousand meters diamond RC drilling if they are not confidents. There are many punters waiting for the next drill holes and assays before taking a stakes in the companies. My friend steven is one. That is fair and responsible ways to invest for mum n dad investors. They may miss out on some profits but thats up to them to be on the safe sides. For me the risk and reward ratios is favourable right now in the heats of the moments to maximize my potentials of compounding returns.
The currents drilling programmes is focusing on one pegmatite. There are 700+ pegmatites here and based on my calculations this one pegmatite we are drilling now will be much larger deposit size than the ESS companies deposits we discussed above [now if we can pull that from just one pegmatite you can use your imagination about adding up the numbers for all the mineralized pegmatites potentials if they are mineralized at depth]. This is unreal potentials thats for sure and the grades are extremely high on the surface.
