@Kamprad7I am voting No in Mid March to the JV.
JV SQM and HP are not valuing a few things
A
ZSLithium Exploration Value of $510m and
AZS Nickel Resource and exploration value of$100m for AZS takeover offer.
pictorially this is shown on the right hand side of figure 1
figure 1 JV SQM HP wants ongoing exploration value $510 m ( $1.11/AZS ) and Andover Nickel Copper complex $100 m ($0.22/AZS) not valued
Why
09 October 2023 Bell Potter Analyst - Bradley Watson
Authorisation . David Coates
" Lithium Mineral Resources have not been estimated and feasibility studies have not beenconducted.
For valuation purposes we estimate a Notional Development Scenario (NDS),based on our allowances for a potential Resource, and other parameters from comparableWA projects.
Using the assumptions in our NDS
we estimate a 100% Lithium ProjectValue of $6,200m.Adjusting for AZS’s 60% ownership, we estimate an
AttributableLithium Project Value of $3,720m.
We apply our early-stage project discount (55%) todetermine a
1) 12-month forward Lithium Project Value of $1,674m.To which we add
2) Lithium Exploration Value of $510m and
3) Nickel Resource and exploration value of$100m. ***
We apply
no premium for any potential downstream margins or takeover activity "
26/10/23 SQM bids $3.52 .. Money of mine guess $3.52
23/10... 445,764,383 AZS shares (11/10/2023). AZS valued at
$ 1.57 Billion19/12/23 JV SQM and HP bids $3.70 on 458,679,575 (30/11/23) AZS valued at
$ 1.69 Billion
talk about anchoring around the Bell Potter number for 12 month Forward Lithium project Value of 1.67 m *** Please note
1) 19/12/23 bid is attempting to anchor price at around $3.68 /AZS
2) Lithium Exploration value ongoing $510m or $1.11/ AZS for the JV is not valued
3) Nickel Resource and Exploration valuie of $100m $0.22/AZS for the JV not valued ( AZS was 22 cents during 22 when Lithium was not considered
Chris Ellison (Min) with 13.6% AZS and average price of AZS of $ 3.63 with yearly shareholder MIN return of 30%/pa will explore minority ownership with an MRE of greater than 240 Mt and around 1.22% Lio2 concentration coming out in qtr 2 24.
I have participated in the $130 m capital raise in August 23.
I would like to get the value of the plan AZS had put before me then on page 3 of the 21/8/2023..Announcement just 4 short months ago.
" The Company intends to use the proceeds from the Offer for the following purposes:
1. Exploration at Andover:
• Continue progressing 100,000m lithium drilling program;
• Activities required to advance towards a maiden lithium Mineral Resource;
• Drilling for base metals (nickel, copper and cobalt); and
• Geophysics.
2. Studies at Andover:
• Scoping study;
• Heritage study; and
• Environmental study.
3. Corporate, working capital and Offer costs:
• Corporate overheads;
• Working capital requirements; and
• Costs of the Offer, including Joint Lead Manager (defined below) fees and legal costs "
(20min delay)
