Like every other spodumene producer we will most likely remain largely adrift untill the price of Spodumene gives a clearer indication of its direction IMO and with it comes more sustainable moves, while the merger completion may have a kneejerk reaction the basics are much the same and of course will come with a consolidation.
For me when the SMM exceeds $US950t ( currently $US845t) we reach AISC levels, give or take which is where we start generating cash , the current holy grail. Any upward moves in Spodumene are good moves..
What will happen post merger is we become fair game for any M&A activity and who knows what the implications are with that, its a story for another day..
As it stands the market values MergeCo's assets at $A462m (US291m) for a paid up, ramped up, debt free producing mine approaching breakeven at the production level , a path to higher production and lower costs and around $A200m in cash, not to mention its other assets...thats well below replacement value and will be noticed if profitable...
Anyone who believes there are higher Spodumene ahead in the next 12-18 months this is looking very tempting from a risk/ reward perspective IMO and mining stocks are all about risk/ reward, not mums and dad's territory.
Since the merger announcement with its CR and further commitments on completion at 3.2c, things have only got better for SYA / MergeCo from a production cost and Spodumene price perspective.
Cheers Whisky
(20min delay)