Only on a watchlist due to them being adjacent to GT1. PLN fell...

Only on a watchlist due to them being adjacent to GT1. PLN fell down to 11c but has since recovered to 21.5c. 46.8m shares on issue so their MC is $10.05m. As at their last quarterly they were at $1.37m cash. While they have planned drilling at Root Lake, their last quarterly covered Verde Valor REE drilling in Brazil as the opening commentary. Its unclear what they consider their primary asset is, but the lift from 11c does not reflect what's been happening in the lithium space so the EV's probably on REE potential.

As per the two screen clips below, the purchase cost of the Root Bay tenement block was A$640k. They have been capitalising exploration costs against this and by June 2024's Annual Report the carrying value was A$1.6m. Many lithium companies are trading under cash plus carry book value of assets so I suspect that any offer enabling them to recover their full book value is fair, as would be an offer close to book value (but harder to sell to PLN's shareholders!!). If PLN are going all-in on their new asset then they are probably going to be quite receptive to an offer. If they are hedging their bets, it could be harder to close a deal.

GT1 isn't rolling in cash currently so they may need to be cleaver in how any deal is structured (assuming there's a deal to be done). All the options of cash/script, JV and farm-in would appear to be possibles although I get the impression GT1 would want 100% if they could swing it.