News: LLL Ganfeng Lithium's Unit To Buy 40% Stake In Mali Lithium, page-55

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Ezy124

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07/05/24

22:45

Post #: 73713878
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Originally posted by Karl89: ↑

My thoughts:
I think we have been officially bested by Mali.

I think Mali will increase their holdings to 35% and Ganfeng will allow it as they are after, more than anything, product. Additionally, it actually puts them to a higher ownership than the original 40/40/20 split. I think the us$342m came at a discount to reflect the discount in the 40% taken up by Mali.

I think Ganfeng now have a proven exploration / construction record with LLL. I refer back to previous announcements re JV exploration in Australia. I think the two companies will continue to work with each other.

I think all in all the company has managed to turn an original $107m into a deal worth (including other sales) almost 5x that amount in around (at a guess 7 or 8 years?)
that’s not without extreme pain, and has been nothing but headaches particularly over the last 2 years.

so where now is the question. I think that sits with Simon hay. If he stays on, the company is in a position to strike on a fairly beaten down lithium market with money in the bank. I’d imagine some money will be returned to holders… but this stage approach does make me think they will be more inclined to use stage one cash to find a project…. Market hates escrow cash and hates a company with no project so who knows how this will open up… but cash value will easily support the 50c level.

In saying all this, it’s a horrid outcome compared to where we were pre demerger… one that I point directly at the failures of Anderson and Cowden for. Completely incompetent and out of their depth. How Mike continues to sit on other boards is incredible and shows the fundamental problems within the spec asx market.

lastly killer will love me saying this, but there’s no reason this company should go back to Africa. What killer doesn’t understand is this was a nothing couple $mill value company that went to Africa and returned with aud$600m+. not smooth sailing but they did it and now can use that capital for a safer jurisdiction.

good luck to FL1 and KOD from here

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Mali government take 10 % and GF takes 90% as mentioned there

LLL Price at posting: 50.5¢ Sentiment: Buy Disclosure: Held
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