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$1.23 liontown resources limited

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MahoganyPark

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17/02/24

08:06

Post #: 72456347
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Originally posted by Gajet: ↑

Unfortunately for us, it might, and I say might because I am surely no expert, be due to nothing really that much more than total cost when shoring up great assets for the long term. When a company buys another company, I would assume they really don’t care that much for the share price, it is more so what the total cost will be to them, and that is based on the amount of SOI. Obviously there must be an attractive offer based on the SP so it has a fair chance of the deal getting done, so that is usually a premium above the normal trading valuation. Now, for comparison:

AZS - 390 million SOI x $3.70 = $1.44 billion total if that was paid right now for AZS. (And she is only paying half due to the JV)

LTR - 2.202 billion SOI x $3.70 = $8.15 billion total if that was paid right now for LTR.

A difference cost wise of around the $7 billion mark. That is a lot of money, even for Gina. It cost her over $1 billion just to get to 19.9% of LTR. In a JV with SQM she pays only half of $1.44 billion for her share of ownership of AZS. From what it sounds like, AZS is going to be absolutely huge regarding the size and quality of its resource so paying that now is going to be worth it. Some say it’s a lot, but that is only based on individuals with their SP, but total cost to her is not a lot at all.

Yes, LTR is much more advanced and about to start making some $$$ compared to AZS which is at least 5 years from where LTR currently sits on the development time line. However, getting in early enough on AZS saves her dollars later.

I could see another JV working with LTR if someone has the capital to pounce now. Would Gina go that extra mile and pay up half of $8.15 billion, or more? For half of LTR? Who knows. She would also need to find another willing participant who would fork out the other $4billion.

If Gina did get hold of LTR, it would shore up a working mine that could make a nice tidy sum over the next 5 years to help build up AZS.

At the end of the day, would you go into a car yard and pay the sticker price? Ain’t no way I would even consider it. Never have. I have always tried to haggle. I wouldn’t know if I did get a bargain or not, but I’d feel good nonetheless. Gina is no exception and she will want a bargain, and she is ruthless. Probably why the SP has been kept this low for a while, so any offer over $2.50 would seem awesome to anybody desperate enough.

But I intend to hold strong for mining, or 1 massive pay day. That’s my thoughts and all just IMO. GLTAH

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Gajet
Thank you for reply, I appreciate the detail and time you took to explain.
My future sentiment is exactly the same as yours.
regards
MP

LTR Price at posting: $1.18 Sentiment: Buy Disclosure: Held
5 Upvote

0 Great analysis

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Last $1.23		Change 0.000(0.00%)		Mkt cap ! $2.970B

Open	High	Low	Value	Volume
$1.25	$1.26	$1.22	$7.836M	6.333M

Buyers (Bids)

No.	Vol.	Price($)
4	39539	$1.23

Sellers (Offers)

Price($)	Vol.	No.
$1.23	12600	3

View Market Depth

No.	Vol.	Price($)
3	28948	1.225
3	30350	1.220
4	26000	1.215
3	15515	1.210
1	5000	1.205

Price($)	Vol.	No.
1.235	18812	1
1.240	56300	3
1.245	40600	4
1.250	255388	11
1.255	68546	3

Last trade - 16.10pm 03/05/2024 (20 minute delay)


Last $1.23		Change 0.000 ( 0.04 %)
Open	High	Low	Volume
$1.25	$1.26	$1.22	2016924
Last updated 15.59pm 03/05/2024 ?

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GajetThank you for reply, I appreciate the detail and time you...

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