Hi Kacy, Talison is located at Greenbushes WA so their relative price difference to Mt Catlin & Greenbushes will remain. In the short term, Jiangsu plant has still got a 3 month spodumene stockpile which is already paid for so the Talison spodumene purchase deal has not clicked in yet.The early announcement of the deal has only served to devalue the stock and one has to seriously ask why it was announced within days of the Chinese buying Talison.
Jiangsu is still producing albeit at a revenue rate of $3 mil or so a month.
The CR seems to be happening now to cater to repayment of debt later in the year, hence the $46 million.
If a deal could be struck with the Chinese banks and financiers to defer repayments for a year, then the cap raise, IMO, could be half of what was originally proposed. Who knows, that may have been the reason for the early ann of the GXY/Talison supply deal.
The new Talison owners are likely to be interested in a GXY purchase (excluding Mt Catlin to take the FIRB out of the deal) as a job lot.
This would give them Jiangsu to add value right away to their spodumene and South American brine deposits as a long term/low cost project.
The only question is how much?
IMO, most shareholders would entertain a bid of 30c
This would value the company at about $320 mil ($160mil equity + $160mil debt)
cheers Moorookamick
GXY Price at posting:
7.8¢ Sentiment: Hold Disclosure: Held
