Generally agreeing with your statement if it is considering the...

First 459 Last

Share
Profile

Follow
StefanM

66 Posts.

12

18/10/21

21:03

Post #: 56889874
Share

Originally posted by surfdown: ↑

I'd be interested what anyone thinks on the 20% FFX keeps of LLL. Seems too high and I just can't see anyone really benefiting. Look at PPK and its ownership of LIS; LIS just listed to a rocket, PPK owns ~45% and has done bugger all in response. These type of connections are two second hand to generate the right return (for the holder, i.e. FFX). So anyway, who really benefits much or what is the real point?

Probably won't effect LLL's potential much (may be good to have a big holder of a large chunk in a type of escrow), but its the benefit the other way (for FFX's value) I have never really seen appreciated in these deals (again see PPK and LIS recently, or lots of other examples - PPK/LIS was not a demerger but lots of demerger examples also, or buy in examples even).

Also means in theory I (for example) need to continue to hold FFX to get my fair share of LLL... (but as noted, that part of my share of LLL is likely not to see its fair value realised).

Expand

Generally agreeing with your statement if it is considering the long term view. However, there are some points to consider in the short to medium term perspective.
If FFX were to hold on to 20% of LLL FFX would profit from the increase in share price of LLL. In the short to medium term this equity stake in LLL could and most likely will be use by Mike (FFX) to cash in funds for external growth (take-over, joint venture) thus most likely for diversification of country risk. Lets think about FFX as the B2G a couple of years ago. There are many good and undervalued junior gold producer out there if you look for a bargain.

FFX Price at posting: 65.0¢ Sentiment: Buy Disclosure: Held
15 Upvote

0 Great analysis

Reply