Phoenix Water - PXW - Lithium - 100x, page-92

drgonzo83, Even retail sharemarket investors that do care about time to production didn't have any issue pushing companies like Vulcan and Lake into multi billion dollar valuations many years before they would produce.
The types of buyers that would be looking at this won't care as much about time to production. They look at the value of the asset over the long term.
Takeovers of listed companies always come at a premium to market valuations. However market valuations are often lower than the NPV if still years from production. That's not always the case though. A gold company I once held, Andean resources was taken over by a major gold company at a very high valuation (in the billions), years ahead of it going into production.
Battery metal assets in the US are more attractive and valued at a premium thanks to the US IRA. So we can only guess what offers would be made. Phoenix doesn't need to accept any offer that it believes is not in the interest of shareholders.
The more I think about this, the more I think any takeover could be well in excess of one billion US.
If this goes to IPO instead, that would still be a great outcome for existing holders. We get the option of topping up in the IPO, ahead of listing which will very likely give us the opportunity to make more profit on the IPO. Anywhere between 50 to 100 percent on that new investment wouldn't surprise me. It also means we don't need to sell our entire holding in one hit so that would be more tax effective and might see us get a better return at times when the market returns to very bullish. I'm thinking about when Vulcan reached around $15 and LKE hit $2.60. Great time to sell those stocks at very high valuations and at those extreme prices, you sell and pay the tax!