ASX Today, page-43079

Who else is looking forward to 2025+ ramped up production? It almost feels wrong buying LTR shares this cheap and essentially at book value! I have been accumulating tremendously and averaging down on my cost base, there should be no reasons to be afraid of some unrealised losses at the moment knowing the revenue it’s about to bring in. Every analyst expects lithium commodity prices to stabilise upwards in 2025 so it’s a very good time right now to capitalise on a future cash cow.

My thoughts are also that a take-over bid could be imminent, and the best way to prepare is to increase our holdings as much as possible, to either vote against any potential low offer, however if the take-over bid passes at least the offer will need to be at a premium and buying now will increase the gains on a reduced cost base.

The short sellers also might be keeping the share price low to try to force the company to capital raise and to make a low ball offer look more attractive. This logic fails for 2 reasons.

1) Capital raise isn’t required given the existing cash balance; however if more fundings was needed, the Company has previously been approved by the banks and likely would also have the ability to get additional funding from an off-take partner.

2) An attempt for a low-ball bid offer would be met as a catalyst for a lot of competition from other industry players seeking a tier 1 resource AND production plant that is ahead of the curve. The interest from a lot of different parties would drive up the bid price and benefit existing shareholders.

So the conclusion is that LTR holders will make a lot of money either through handsome dividends and a steep and long term rally up in share price, or will get a great payout figure from a takeover. I prefer the first option, but I think accumulating very strongly at the moment is beneficial in all scenarios.

Just my opinion, not financial advice. DYOR.