NMT share price was around 2ct when they negotiated the deal on Mount Marion, they had no cash but somehow managed to negotiate a free carry with MIN by to create the worlds largest processor in exchange for selling them 42%.
They also managed a take or pay mine life deal with one of the worlds largest lithium companies, Gangfen, which included a minimum price and a rolling bank guarantee to ensure payment.
NMT also included buy back rights for some 12.8% of processed lithium should they be able to have a higher value use for same after 2020, which is how NMT intend to feed the proposed Lioh plant.
This deal gave NMT some $90m, allowed a payment of two 2ct dividends, carry out a share buy back to reduce shares issued, recive income from their free carried 13.8% holding at Mount Marion and have cash to progress all the other developments and interest NMT are working on.
This derisked the whole operation and left NMT cashed up with regular income which is now starting to flow, not bad deal for someone negotiating with their pockets turned inside out at the time.
NMT have 100% ownership of the titanium deposits they openly state is “the big one”, the in ground mineral value is $130 billion Aus for the first 80m from ground level and deep drill targets could double that, so yes I’d agree they are undervalued and I’m very pleased in the way they managed to get themselves into today’s position.
The exciting part now is how they take “the big one” forward, will it be with another partner to help fund and de risk the deal with another take or pay arrangement, do they get the right offer and sell out, or DSO and raise more cash so they don’t need to sell down as much with any JV partner?
With only 544m share issued whatever they decide should have a big impact on today’s share price and based upon how they dealt with Mount Marion when they had no cash I’d like to think whatever way it goes should see a multi dollar share price, until then income from Mount Marion underpins our current share value and may allow another divi payment soon, patience is the key, Loop.
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