So Ganfeng offer up 58 cents per share to us??nice and cleanI...

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DavoMagic

16,961 Posts.

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08/05/24

14:03

Post #: 73726387
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Originally posted by Red Baron: ↑

I've only just found time to have a good read of the announcement.
A few comments below.

We were paid $65m for 5% which implies the remaining 40% is worth $520m (not $342m), however a lot has changed since we sold that 5%. Mainly the new mining code which means Ganfeng may only end up owning 65% of the project. We could have ended up only owning 26%. There is no reason the Govt won't take up its full 30% as under the new mining code they don't have to pay market price, so I'd say its a certainty.

IMO we did very well to still be able to sell that 5% for $65m, however we needed that to pay the Mali Govt the $60m

As of today Ganfeng are paying all the construction costs.
We had US$21.8m in the JV account as at March 31st, we should now own either 40% or 45% of what is left of that money. Based on last Qs spend I doubt there'd be much left, I'm assuming zero.
We also had A$69.3m in cash at March 31st
We are also receiving A$11.5m from FFX
We also will have US$5m left over from that $65m sale of 5% after paying the Govt.
All told about A$88m, about 7.3c a share
I'd expect our contracting fees to Ganfeng to pay the lions share of our staff costs dedicated to the project. Apart from Simon, CFO, Office girl we shouldn't need too many staff anymore.

What are the future plans post Goulamina for Leo?
Interesting for that Royalty stream they quoted a NPV figure for various spod prices rather than an annual income. That has me thinking they're thinking of selling that stream and possibly winding up the company, even the shell of Leo with it's carried forward losses and asx listing is worth quite a bit of money to a potential Lithium explorer.

We've got 7.3c a share worth of cash, the US$342.7m is 43c a share, the Royalty stream at A$100m is 8c a share, all up 58c a share, a premium to the last price.

Hopefully we don't have to wait for all this to complete to relist, the Annual accounts should be ready to go, the AGM needs 28 days notice. Yes there will be a lot of holders wanting to exit straight up, on an asset basis I see it being worth 58c. How much of a discount people sell below that is up to them, as I said before I hope they wind it up & distribute money to shareholders as they get the funds rather than taking a big hit when it relists.

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So Ganfeng offer up 58 cents per share to us??

nice and clean

I would sign for this if I could get it next week

Last edited by DavoMagic: 08/05/24

LLL Price at posting: 50.5¢ Sentiment: None Disclosure: Held
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