What I do think however, is that AJM got a bum rap over the lack of progress on Lithium and that PLS had impeccable timing and good fortune..
Even though AJM were a coal miner they had the foresight years ago and well before PLS to pick up the Lithium deposit. They did give it a go and were maybe before their time.. They were hunting for lithium in 2012 and were speakers at the Fifth Lithium Supply and Markets Conference held 31 January 2013 in Las Vegas. So what happened? The world was not basically interested. Hard rock was considered largely too expensive against brines. So I don't blame them if they knocked back an offer by GAM. At that time they were struggling with IO and Coal for survival and the fact they came out of that and are now strengthening does say something of management. Every IO and Coal company, including some majors made big mistakes. In fact when prices were at record high's and Companies were talking up the market people that know in China were shaking their heads. How BHP , Rio , FMG didn't know what was happening is beyond me let alone little old AJM.
So, no it's not a simplistic look. In fact whether they are nice blokes or not is not the issue. They managed to save a company and turn it around when it should have died and that says something of management.
For PLS, well they had the dream run. A coming together of the perfect Lithium storm. I bet when Elon was up on the podium NB was in dreamland because that opened the world's eyes to Lithium and the future. NB describes him as his best friend although they never met. PLS have been excellent at PR but imo also pi$$ed away a lot of shareholder gains with some crazy CR's. The June CR should always have been about shareholders and options with later ones handled by sophs. Then perhaps we would be up with the gains of GMM.
You are right that we are in identical shares. One thing I think in AJM's favour is size. Big is not always better and often requires the funds of the sharks. Many think the Chinese have funds to throw around like there's no tomorrow. That was true and is not now. Unless government backed, funds are tight, very tight. I think the size of AJM may appeal financially to some in the list I posted more than the huge bite needed for PLS. As we get closer to DFS the sensible option of one huge mine in Pilangoora is going to get further away from possible. The more costs are duplicated the less chance there is. We may well end up with the crazy situation of two mines in pig.
I am not just looking at MC BF. I'm looking at this and saying "okay PLS will be bigger and I think AJM more under valued". Most importantly I'm looking at future growth and the funds required and asking myself which management are likely to look after shareholders the most in the growth story. Because the growth story will be there no matter what imo
Regardless BF I value your posts a lot and I like your thinking. We just have one small difference of opinion
AJM Price at posting:
5.6¢ Sentiment: Buy Disclosure: Held
(20min delay)