Sorry I should have been more specific, I meant a third party takeover offer can be blocked, not an offtake agreement.
You are correct in saying that MIN is not able to block an offtake agreement.
And I do agree that MINs share price is most likely to appreciate due to their lithium division, but I think it can appreciate back to the $80 per share level just on the back of improving lithium prices and sentiment, without any actual improvement in their lithium operations.
But as you correctly pointed out, this could backfire and ESS could appreciate on the back of that sentiment also.
However, I think improving lithium prices and sentiment would benefit MINs share price more than ESSs for the following reasons: (1) As a producer their share price SHOULD react more positively to improving lithium prices (considering they are actually exposed to the current price) (2) ESS may have a perceived cap at 50c due to the takeover offer from TLEA being at this price.
This of course is complete speculation, there could be any number of reasons that MIN hasn't pulled the trigger yet. It could just not be high priority for them. While it's important to us, an $130m acquisition is not a big deal to a company like MIN.
I do still think they will make an offer, the increase in profits they would secure by direct shipping Pioneer Dome ore to Mt Marion and blending it with their own ore which is struggling for grade at the moment is just too good to walk away from in my opinion.
Trying to remain patient.
ESS Price at posting:
45.5¢ Sentiment: Buy Disclosure: Held
