AKE (ASX) Merger: Yes or No

Originally posted by TheOldGuy ↑

Who made the decision to buy Galaxy?
Who reduced production costs during the lithium crisis to ensure the company's survival?
Who made sure that we have reached Stage 2 for almost all projects and are close to Stage 3 for some of them?
Who acquired James Bay, which is likely to become the next gold mine?

What should not be forgotten is that all this happened without burdening the shareholder with mountains of debt.
All this at a time characterized by a pandemic, disrupted supply chains and war.

Now to write here that the management was too slow, that they were betrayed, is nothing more than foolishness.

What you are calling a breach of an article of faith is nothing more than growth. Growth in order to be able to continue to exist on the market without being swallowed up by the greedy oil companies that are increasingly stretching their fingers into this sector. Just like the big mining companies.

How long could Allkem stand up to them alone or avoid a takeover? What would the conditions be?

The merger is not only a safe bet, but also opens up new markets with new growth opportunities.

You are not marrying a share or a company, you are trading their shares and the prospects for growth and profit.

Expand

What takes more skills?
Buying an asset or developing it into an operating, cash flow positive entity.
Mt Cattlin was acquired through GMM/GXY merger. Mt Cattlin was restarted and optimised and not developed.
Which asset did GXY/AKE develop into an operating Li mine since acquisition?
What about the JB regulatory blunders this year?
I dont think AKE management can call themselves top notch leaders in the field.
They have done ok. But they have equally blundered millions of shareholder money without scrutiny or accountability.

I am first in line supporting a merger with a capable, proven Li team. For exactly the reasons I criticised. Livent is not such a team!
Its track record is equally bad or worse than that of AKE management.

The US market says exactly that. Compared to the Comparative NYSE Li Company Index, Livent is an underperforming company with a declining valuation on the NYSE.

What does it take to change this sentiment?
Anyone?

Also, a turn of the NYSE valuation of NewCo into neutral or positive performance territory would mean that AKE's contribution was more than EQUAL to this deal. Simple logic.

IMHO, there are not enough compelling reasons to change NYSE sentiment.
Thus, I see a substantial risk to my AKE investment if we change to the US market . Hence, I like it to remain on the ASX, where AKE cintinues to be valued as overperforming and has historically generated higher returns (90% more than Livent I the last 3 years) and better trading opportunities.