Yea, Simon did say they were looking towards Europe and North...

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Finn

1,210 Posts.

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12/07/22

11:48

Post #: 62491754
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Originally posted by Red Baron: ↑

Starting to get to bargain basement prices at 40c, giving a market cap of under $500m

To put that into context, PLS increased it's cash balance by just under $500m in the June Quarter based on a slightly smaller output than we're planned to do (stage 1), at almost double the cost compared to ours (though ours will no doubt increase in current environment), they also spent quite a bit on capex and still managed to add $500m.

Leo is now a completely separate company to FFX albeit sharing (did) a common Chairman. The Board of Leo should not have much input during this 2 year construction period. Simon is very capable & experienced in the Lithium business, no doubt Ganfeng will keep a close eye on the construction.

Car manufacturers realise they have to get involved in upstream mining if they want to ensure supply. There are very few advanced projects to choose from, I'd guess many of these are running the ruler over FFX, an easy way to pick up 17.6% of Leo. Yes Ganfeng have 100% offtake of stage 1, but stage 2 is open and although Ganfeng convert stage 1, Leo could have a say in the end user of that product.

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Yea, Simon did say they were looking towards Europe and North America for stage two product in his latest presentation. We have options open to us, be interesting to see who gets first dabs on that. Lots of Mega Factories being build with no supply secured as yet, they could be shopping around at this very moment. I don't think we will have to try too hard to sell stage two, in fact I think all we have to do is wait for them to come knocking.

All imo and DYOR
Regards
FINN

Last edited by Finn: 12/07/22

LLL Price at posting: 40.5¢ Sentiment: Buy Disclosure: Held
6 Upvote

0 Great analysis

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