Takeover Target?, page-2

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Gusty

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20/01/21

10:02

Post #: 50296040
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Originally posted by Red Baron: ↑

As others have posted, we've had $30m + taken off our market cap by a clerical error, an error they couldn't possibly enforce. Also the Lithium & Battery sector is hotting up, lots of M&A occurring of late. There are virtually no projects in the World as big as ours, with high grades, fully permitted that could be bought as cheaply as a possible takeover would allow.

Most takeovers are pitched at about a 30-40% premium, so in our case 24-26c. I think a 30c bid would get over the line, that's A$235m

For $235m that they get:

Goolamina, full professional DFS, fully permitted, very very conservative value $460m **1
Gold mine with full infrastructure, from 4.5mtpa plant, to accommodation to airstrip
1.5m oz, + 3 satellites
$30m cash
Current production $1m profit per week
$16m tax credits.

You would be very naive to think we aren't being very closely looked at by many companies.
Cheaper to buy the company than try to buy the asset.

**1 I have based this on 50% of AVZ's project value.
Present market cap $560m for 60%, valuing 100% at $930m
AVZ is a single asset company in the DRC, it's at the same stage as Goolamina, is a larger project, but has some issues with transport distances/costs, DRC is less business friendly than Mali, many would say AVZ is over valued.
50% valuation is very very conservative.

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I would vote No for a take over bid of 235mill

FFX Price at posting: 17.5¢ Sentiment: Buy Disclosure: Held
28 Upvote

0 Great analysis

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Takeover Target?, page-2

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