Copied from AJM forum:I'll start by noting that I am holder in...

Copied from AJM forum:

I'll start by noting that I am holder in both AJM and PLS and have been since the beginning of both delving into the lithium world, so please read my comments in that light.

Since the beginning it has been noted by many on both forums (albeit mostly by PLS holders) that there is potentially significant value in consolidation of these operations, so I am am not surprised at the speed with which PLS placed a bid in response to the appointment of receivers and administrators. As a shareholder in PLS, I WOULD be surprised (and frankly disappointed in Ken Brinsden) if a bid was not under constant (quarterly if not monthly) development, review and revision for just this situation.

A driver in this discussion, was the agreement in the early days of both company developments of the agreement over what to do in the eventual requirement to mine the 'borderlands' between the two leases that PLS have highlighted in their less-than-subtle way as an advantage to a consolidated operation and a constraint to a divided ownership. Other factors in the synergy include many mentioned in this discussion re logistics, expertise sharing, blending, management overhead and also include other factors such as consolidation of accommodation, road maintenance and potential improvements in contract negotiations / costs and the advantage in 1/1 discussions with traditional owners.

Costs and current product pricing not-withstanding, the constant review of this deal over time is a 'no brainer' for PLS (or even for AJM if the situation was reversed).

As I understand the situation (and only my understanding, which can be corrected), PLS is to buy the ALO division of AJM (a wholly owned subsidiary) There are good reasons for creating these entities and in this case the carving off of this entity still permits AJM to exist in its own right (albeit with fewer assets under management). Unfortunately we, as shareholders, do not own any beneficial interest in ALO and its sale benefits only its parent(in this case a point of content between AJM Management and financiers). Our shares will be (next to) worthless when this happens, but frankly our inability to trade them for months has made them worthless for some time and even if a good refinancing arrangement was announced the share price would have fallen precipitously on reopening of trade due to the perception of the length of time taken to 'convince' financiers.

I'm not happy. I assume most AJM holders would not be happy. As has been pointed out by others, trading in shares is risky and we have just realised the risk (in spades). Talk, however, of PLS as bad guys or of suing management, Australian Super or anyone else is pointless. This is our reality.

There's a little way to go before this all shakes out so my intent is to sit back and watch the chess-game (or checkers?) and hope for the best in a situation over which i have no influence.

GLTAH