"Rio and BHP and the shorters must be kicking themselves,...

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TrayonRanger

9,401 Posts.

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22/04/23

14:19

Post #: 67409321
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Originally posted by DaisyA: ↑

hi @vmp, yes who knows but I would make the following observations:

1. It makes sense for Chile to try and become the Saudi Arabia of brine and try and control it and its price, and that may be their plan and to bring SQM and ALB to heel. I noted the recent post by @anatol explaining the finer details of the ALB dilemma. The prospect of an earlier intervention by Chile must be on the cards.
2. On the other hand nationalisation of resources never works and private control is always more efficient if tightly controlled as the wily Saudis and Chinese have worked out. I personally have doubts that Chile will ever be able to emulate that and without a motivated private enterprise doing this it will be another Chilean and dare I say South American financial disaster.
3. If I was ALB and SQM I would negotiate a completely different arrangement with Chile and cut them in more but perhaps SQM and ALB are too arrogant or stupid to do that or perhaps there is too much bad history there as @anatol has pointed out.
4. In any event the clear focus of our management of such a wonderful hard rock resource in the best mining jurisdiction stands out like a beacon. While I truly want LTR to stay independent, suitors must be circling. Rio and BHP and the shorters must be kicking themselves, perhaps WES sees an opportunity. All we can do is wait and see.

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"Rio and BHP and the shorters must be kicking themselves, perhaps WES sees an opportunity."

Must admit am very surprised that after ALB's expression of interest, that others, (above mentioned and/or including FMG Hancock Dark Horse +++), have not jumped up and shouted, "HEY, hands off, that's mine!".

The usual play is someone (ALB), shows up and makes a move ($2.50), thus setting in motion the FOMO JEALOUSY RAGE, that some uppity up has the audacity to take what's MINE. Well, I'm just NOT gonna let that happen!

Then the bidding war ensues.

Unless they are ALL in cahoots with each other.

LTR Price at posting: $2.72 Sentiment: Buy Disclosure: Held
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0 Great analysis

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