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13/05/19
08:37
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Originally posted by Jazz6868:
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Going all the way may not yield the results we wanted as shareholders. take for example. SIR took over by IGO. When SIR was trading in it own right and from nothing to Discovery, Drill out, DFS, CR (multiple), loans and decision to mine. The share price sky rocket to over $5 well before there is a mine. Come the TO bid by IGO, the deposit is still world class, cost reduction, C1 is the cheapest and lots of opportunity to increase reserve and they are in production. The share price of IGO will not budge if there was good news and bounces between $4 to $5. All because it is an income producing asset. It is no longer "sexy". For KDR to take it all the way, it will be a few years, a few CR, some set back, loans at 15% and will have good news and bad. But it will take time and may not necessary lift the share price in such a way that the shareholders deserve. One of the greatest challenges for any Li play is not within Australia but outside where no one have any control over is the price of Li. the mechanism of price setting is so opaque, we can get screwed over so easily. There is limited buyers outside the Chinese market and it will be a fight to take them on. until there is an open and transparent market. We are totally held hostage by the Chinese and they will set the price they want.
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when posters compare companies based on share price and not market value. SIR $5 while IGO $4 means nothing - it most definitely doesn't mean SIR was valued more than IGO.