Lithium, page-10

Throwing something out there, interested if anyone else is gauging something similar.

Firstly:

originally I thought, with the way the announcements were written up, that Ganfeng would firstly aim to get a loan for the us$64m and have their own usd$40m on the line as a loan if they were unsuccessful securing.

Ive been revisiting this thought and it reads different to me now. the more I read it, the more this actually is put to them as an option of which they would rather.

secondly:

With the announcements I’ve read, I’m of the opinion Ganfeng will be become a Substantial holder of LithiumCo on demerger.
we know: FFX to hold approx 20%, FFX holders to hold a % of free shares… however it’s fairly obvious, given LithiumCo starts as a company in construction, they will require significant funds.

Ganfeng holds a bit of power here as if the choose to provide the capital, an additional us$24 by all parties to reach Capex US$194m

so LithiumCo would need an additional us$11m (45% to cover gov free carry) for construction costs plus you’d want atleast A$20m - $30m sitting in the bank to cover 4 years of directors fees / company costs without income ?

this opens the door further for Ganfeng to buy in a more substantial holding into LithiumCo. If you have a look at Ganfeng website, it’s common practice for them to hold a substantial holding in their partner.

FFX 20%, Ganfeng + instros 30%? , existing holders 50%
if we threw an initial opening market cap of say 200m for LithiumCo.

LithiumCo opens with A$60m (minus -a$15m construction + fees) approx a$45m in bank.

some obvious things here, Maybe they don’t need to sell 30%, maybe the initial deal will be more that market cap $200m, i prefer to downplay. But it has got me wondering and worth bit of discussion / people expertise on here.

thoughts?