Many long term holders got in at cheap prices from BGS / MLL / FFX days and received 'free' LLL shares at the demerger, with the pro-rated cost base now being covered under the CGT tax discount, so if these long term holders don't need to sell, they can still easily be in profit from the day of relisting and give the future LLL a chance to morph into its next chapter. At least it is now be deemed to be decidedly separate from FFX, and have dropped the dead weight.
The royalty could act as some sort of 20 year 'dividend' if you like for those long term SHs who have backed the project and haven't sold their holdings.
Unfortunately, those who bought at the highs will not be seeing profits from all this, but may be able to offset any gains with other stocks with this loss, or retain for the inferred possible future JV. All SH have their own unique circumstances and investing plans, so a one-size-fits-all approach does not apply.
In the meantime, a JV headed by Simon could be the rising of the phoenix - a chance for him to again show that he can bring a project up, a fresh start minus the FFX-type legacy headwind he was always up against from the beginning here, due to the FFX suspension 4 days after the demerger.
Hopefully the previous LLL ANNs alluding to future JVs was a subtle nod to something in the future that could now come to fruition whilst LLL is delisted and before Tranche 2 is received. There are obviously ideas in the background and so long as Simon were to remain at the helm, as he now appears to have a strong working relationship with GF and has a strong track record, I would be open to considering backing a future JV.
The LLL result appears to have been out of the BOD control, but it does appear they are looking to move onwards and upwards. With the right marketing and timing, it will be interesting to see the announcement of a new JV, which could provide a stable/positive response to re-listing.
LLL Price at posting:
50.5¢ Sentiment: Hold Disclosure: Held
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