Breaker started off with 100% of the Manna lithium deposit, they've kept 20% of it and sold 80% of it to Global Lithium. So how much did Breaker earn for selling off that 80% of Manna?
- They got paid $15m for this most recent sale of GL1 shares.
- They will likely be paid $10m plus another $10m by Global in deferred payments.
- In April they got $6.45m for their first sell down of their GL1 shares.
- Global paid them $13m upfront.
- (edit: also Global is paying for the exploration work at Manna so maybe chuck in another $15m?)
Have I missed anything? If I've not then it seems to me that Breaker handed over 80% of Manna to Global for a total compensation of about $55m.
Global's current market cap is about $589m. It has two assets, the one up near Marble Bar in the Pilbara and 80% of Manna, and the general view is that Manna has the better potential. But let's be conservative and say that Global's current market cap suggests a market value for 80% of Manna to be about $294m. But I must have this wrong?!?! Otherwise how can so many posters on the BRB threads argue that Breaker has done well in selling down 80% of Manna for $55m when the market already values that very same asset at $294m?!?!?
The really sad thing is not so much that Global was allowed to rip the face off Breaker shareholders with this Manna deal but that some Breaker shareholders still think that Uncle Tom made a savvy deal / kept Breaker pure / managed to avoid a ponsi / will be able to build a $180m mill and infrastructure using what they got paid for 80% of Manna.
If you want to get a measure on how "savvy" a deal the sale of 80% of Manna was keep an eye on Essential Metals. They have a smallish lithium resource in the same part of the world as Manna but differently to Breaker they seem intent on developing their project by themselves. Back in late December 2021 ESS shares were selling for around 18 cents a pop and now they are at 53 cents. Back in late December 2021 BRB shares were at about 29 cents and now they at about 24 cents. And Essential has not completed a scoping study yet or signed any off-take agreements so they have hardly got started.
