The issue that I have with the 6.6B is that from a headline...

The issue that I have with the 6.6B is that from a headline point of view, it's a lot of money. However, what is not factored into the general conversation is stuff like the tax credits that the Aust govt are looking at for strategic mineral resource development, the financial support from the US govt for companies meeting their ESG and strategic minerals requirements. Also, this deal would not be inked until sometime next year so financing would not have to occur until then. By that stage, we will be producing DSO product (and selling it), commencing plant commissioning, production commencement by Julyish. Add to this the fact that the AUD is currently trading at circa 0.64 to the USD.

In other words, there are a lot of building blocks already in place. This has not been articulated in the media that I have read. It would be extremely interesting to see the financial modelling for this proposed purchase once you take out possible incentives and other deductions available. Hell, if ALB made an offer with the AUD at is historical average to the US (circa 0.72) then they would have to stump up an extra 12% in US dollar terms (or possibly try to offer 12% less).

The comment at the presentation re the integration of LTR into ALB would deliver thee times their WACC. That represents a significant return to the investor (ALB) and its shareholders and financial backers. Hey, take the product from KV to their Kemerton refining facility and they could have this purchase paid off in double quick time.

IMO