LLL currently own 45% of the project. The gov might buy another 10% of the project knocking LLL's share down to 40% - they must buy that 10% at the market rate. There is no indication as yet they will do so, though it is somewhat expected. It is likely the gov finance the purchase via giving the JV company tax discounts. As a government I wouldn't expect the decision on that to come until we are a producing mine at nameplate production. I think it v conservative to assume that 10% will cost them $300 - $400 million. So that's going to be one big tax holiday which will add to LLL's bottom line in the early years of production.
The discount is due to a very conservative investor base in Aus amongst institutions and the largely boomer soph sector IMO. They don't like investing in Africa, or anywhere not here except the US really. And I guess you can't blame them too much given the huge & safe money they've make in Aus from real estate & dividend paying bank stocks thanks to the population ponzi scheme being run for their advantage. Why would they need to invest elsewhere? Most holders here anticipate the very large discount on location will shrink as production is neaed, and reached and huge amounts of cash start to come in.
LLL Price at posting:
65.5¢ Sentiment: Buy Disclosure: Held
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