I think today's news is way more positive than negative for WC8....

I think today's news is way more positive than negative for WC8. Reading through the takeover PLS presentation and thinking about what this could mean for WC8 valuation and holders, especially as PLS is the closest neighbour to Tabba Tabba.

PLS takeover offer valued at $560 million.
I reckon 30% premium for an Australian asset in world class Pilbara compared to Brazil development and operating risks.
Therefore Australian project equivalent ~$730 million.
LRS has 71mt Lithium resource.
Assume MRE or initial resource at Tabba Tabba is larger, say 90mt so ~27% size premium. Some reckon its 100mt+?
Therefore Tabba Tabba equivalent resource valuation ~$925 million.
Fully diluted # shares (incl all options, conservative) ~1.5b.
Read through valuation per share 62c.

Any offer launched would be at a 20-30% premium which puts a potential takeover in the 74-80c range.

Catalysts to get to same as LRS outcome includes WC8 announcing a resource (imminent), maybe a preliminary economic assessment like LRS has which is not difficult.

Upside clearly from lithium price cycle recovery or rebound. That's a matter of time although we still could see lower prices from here. Today's announcement by PLS absolutely confirms a willingness by the big strategic producers, and their customers to look through short price cycles and take a long term view of the lithium industry. Smart move by the PLS team to move counter to cycle when there is fear in the market. Just like they did with the Altura acquisition when spod price was US$400t.

One key takeaway for me is that the strip ratio for Colinas is 18:1 with an ore body that is multi stacked relatively thin pegmatite sheets. Tabba Tabba is thick and consistent and will be very low strip with low mining costs. Right next door to Pilgangoora's plants. I understand Colinas might be DMS and not need float so acknowledge that advantage for met.

Summary is great read through on valuation and confirms PLS and the big lithium players have high confidence for acquisitions and taking long term view. They know the market better than anyone.

If lithium prices recover then any transaction would likely be $1+ with the big guys being able to use share scrip that also recovers with higher valuations at same time.