DrDrill"The lithium would no doubt be a very welcome...

DrDrill

"The lithium would no doubt be a very welcome consideration, but let's not forget that the gold is where the true jackpot is." Really?

On 9 December 2016 the up and coming gold miner, Ramelius, sold their Kathleen Valley project tenements to Liontown, for 25m LTR shares and a 1% royalty. As it happens Ramelius dumped their LTR shares for a pittance and sold the royalty back to Liontown for I think $30m. At about that time you could have bought LTR shares at no more than one cent a pop and RMS shares for about 43 cents a pop.

Since then Liontown discovered some lithia on amongst the spodumene at KL but has not begun mining yet and Ramelius has become a 2 hub operator producing more than double the amount of gold that it did back in 2016.

So where was the jackpot in that deal? Well, the LTR share price has gone from one cent to $1.59 and the RMS share price has gone from 43 cents to 69 cents. Liontown has a market cap of $3.5 billion and Ramelius has a mc of about $600 million. Clearly there is only one jackpot in this story and it certainly does not involve gold. Of course there is a good chance that Manna is no Kathleen Valley but the fact is that fortunes have been, and are being made in the lithium space.

Anyway, it seems to me that Breaker had no immediate need of the proceeds from selling its GL1 holding, so why not sit back and see what happens. I'm a bit surprised that Peter Cook was onboard with it.