Yesterday we wrote to LTR and TG with the assistance and input of @Tünnes and @anatol . With Hotcopper “welded on shareholders” having provided their collective opinions at this time, there is clearly strength in numbers when up against the 600pound gorillas of ALB and Hancock and perhaps others in due course.
The information now in the hands of LTR regarding the opinion of a big chunk of shareholdingsis quite likely to inform the board room discussions with their advisers aboutwhich course they should take in the battle for our company’sindependence.I am under no illusion here, Hancock is not our friend!The previous track record of the principle, Gina Rinehart has been conquest, not cooperation.
There is an enormous amount at stake here for all of us! Just imagine the additional valuethat will accrue to our shareholdings over the next 9 months.Here we are when ….
1. the China spot Spodumene price isway down and according to certain analysis, inventories have now reached as lowas 0.21months supply, the same level it reached immediately before the massivesurge in prices in 2022
2. our KV project is on the cusp ofreaching completion where our expectation is that when the switch is turned earlyin 2024, the brilliance of our management’s execution and flow sheet will beginto be revealed. Maybe in only 3 months from now!
This is therefore very likely to be the last/best opportunity for predators to make a case for alow value that they hope to steal the most outstanding lithium start-upglobally for.Any delay by them now risks the news flow turning against them, and of course if commissioning is successful, a whole new valuation paradigm will be adopted with an expected earnings multiple and copious cash flows that will make any $56m capex overrun look like small change!
We informed the company of the opposition of many Hotcopper shareholders to any takeover at,or even moderately above $3.00.It is now apparent that Hancock has had an enormous task to get shares on market at around that price. It appears that shares borrowed by hedge funds have been on-sold to Hancock to the tune of around 3%-4% of its new total holding of 14.7%.Now we see Hancock’s broker canvassing our own fellow Lionnaire posters to establish a bigger beachhead before likely launching a full assault/bid.
I am hoping that the company engages with us as a group and you will all be kept in theloop if that happens.At this stage it may be inappropriate to publish the full text of the communication with management, but it was made clear that retail shareholders will command a big say in the direction this takes.
IN THE FIRST INSTANCE, I HOPE IT WILL BE THATWE HOLD THE LINE WITH OUR SHARES HELD TIGHTLY WHATEVER VOLATILITY IS GENERATED.WE’VE DONE IT BEFORE, AND NOW WITH PRODUCTION LITERALLY A MATTER OF MONTHS AWAY,WE CAN COMFORTABLY DO IT AGAIN.
Bring on many more great posts like we have been seeing and that are helping this forum provide an invaluable source of analysis and encouragement to LTR shareholders.
Regards
DF
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