@JoshuaL (can't reply to yr post) you either have no idea or are just stirring the pot, I suspect more the former.
A de-merger is not a get rich quick scheme, but is designed to unlock the value of both companies over time.If it was possible for LLL to trade the day after the demerger (ex date), in theory the sum of the 2 companies would equal the price FFX was before going ex Bonus. This is because the market anticipates the value of the 2 parts and the parent company increases in value as the demerger date approaches. Otherwise we'd all be able to make a killing overnight.
Now separated, the 2 companies will be judged along side their peers. Look at FFX, present MC $390m, compare that to Red5 who have a MC of $930m, a $120m debt, plan to produce 62-72k oz FY22 at an ASIC of A$2400-2500. It won't happen overnight, however both companies will eventually find a valuation in line with their peers.
There are a lot of shareholders in FFX who were in it for mainly the Lithium. This is going to create a selling overhang, it might be a month before this is cleared & FFX trades at a value more representative of it's worth.
FFX Price at posting:
33.5¢ Sentiment: Buy Disclosure: Held
