Article in the Fin Review talking about the GXY/ORE merger.The...

Article in the Fin Review talking about the GXY/ORE merger.

The Canaccord analyst comment:

“We think the enlarged scale of the combined entity could attract significantly higher valuation multiples, noting larger cap peers trade on 15 to 20 times EBITDA [earnings before interest, tax, depreciation and amortisation],” he said.

Admittedly Goulamina by itself would be smallish compared to the combined GXY/ORE, however to a large lithium player, Goulamina’s DFS EBITA of A$222m would value it at $3.33-4.44 billion using the 15-20x metric. I’m not for one minute suggesting we would get that, those figures are the value when operational and held by a big company. It would need to be constructed/commissioned and discounted back etc. However it does show our after tax NPV of US$1.2b is a very realistic figure.

(you need to swap copyright link into that link (afr))

https://www.copyright link/companies/mining/lithium-boom-2-0-drives-4b-merger-supply-push-20210419-p57kh1?utm_content=COMPANIES&list_name=5655EA70-F54A-4680-8E43-524D4E016C59&promote_channel=edmail&utm_campaign=before-the-bell&utm_medium=email&utm_source=newsletter&utm_term=2021-04-20&mbnr=MTM3NTQyNTE&instance=2021-04-20-05-59-AEST&jobid=29302313