In a sense this thread is premature because we haven't passed the effective or implementation dates yet. But tomorrow is the second court hearing date in the scheme of arrangement. Things seem pretty concluded.
I certainly don't think WES paid too much, as I've said elsewhere, I think WES have taken advantage of a macroeconomic downturn (which hurt the sector and KDR managements capacity and apparently their self-confidence to raise finance in the near future) but I think WES have just recognized (opportunistically I believe) inherent value in the Mt Holland resource, the SQM partnership and in having a planned refinery at Kwinana - which has capacity to expand.
I saw this exchange though in the LTR thread by two non-holders of LTR and would actually like to see good arguments put if any can be for the proposition that WES paid too much.
I'm still interested in investing in the lithium sector and there are still plenty of alternatives on the ASX, and WES will still be going ahead with Mt Holland with SQM, so I'm genuinely interested to hear comparisons or evaluations that are sensibly grounded (on assumptions) and reasonably supported by argument as to why WES paid too much.
I reckon WES paid for
1) The resource (reserve actually) that is JORCed plus strong probability of being able to add with more drilling.
2) The SQM partnership where SQM has deep market knowledge of customers
3) A refinery site with capacity to expand
4) A project that had received favour from the WA govt wrt streamlining development
5) Gold and other assets that had been prepared for sale but not sold due to the interruption of WES's bid to the KDR management team - so it only got valued very conservatively by the valuer - no prices from bidders had been collected.
I noted in agreeing with
@8horse @sljasx went further than 8horse had.
Why did WES pay too much?
Comments (especially considered ones - no need to rush) welcome guys.
