Jeez the rubbish that gets written on Hot Copper threads. Wyloo, the privately held battery resources unit of Australia's richest man Andrew Forrest, you know, the bloke who made quite a lot of money from mining, leant money to an overly ambitious formerly ASX300 rare earths mining company and earnt a nice bit of interest and then picked up a majority stake in a joint venture at a vastly cheaper price to when the loan given. And to boot became the largest shareholder in TSX-listed Neo Performance Materials Inc. (Neo) one of the few companies outside of China actually processing and producing rare earth products – magnetic powders and magnets, specialty chemicals, metals, and alloys – that are rather critical to emerging technologies. And you guys think they aren't developing this.
HAS paid $135 million CAD for the NEO stake. The mining resource is almost is a free add-on to Wyloo.
You can't make this stuff up. The ease with which these oligarchs amass assets and power and ROI. And they do so quite legally amongst dozy boards, investors and mkts.
To say its not getting developed (probably not before Wyloo gets to 70% ownership) rather misses the entire larger geo-political bottleneck picture of rare earths supplies globally.
Wyloo are literally almost crowing about the deal, and well they might:
They picked up two assets for pennies on the dollar to where they traded at their exuberant highs (that the board should have sold shares into).
Look at the existing complimentary assets it owns and the synergies. Twiggy's diversification plans are in full flight. And to his credit he puts them in place cheaply. Wyloo isn't recouping losses. It's picking up assets at bargain basement prices.
HAS Price at posting:
31.5¢ Sentiment: Hold Disclosure: Held
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