Indeed. 36m in cash plus IQE shares plus more cash to come or more IQE shares. So trading at close to NTA, less 4.5 months of expenses.
Things I have been cogitating over:
1. Clearly, GE are a typical conglomerate. When the shit hits the fan anything that is not immediately EPS accretive is sold/closed. The shit hit GE’s fan big time (and still is), so they (new management) had to do anything and everything they could to appease market. So them walking away I think has little to do with long term potential of laser enrichment.
2. I hazard a guess that DD on GLE very quickly concluded that the Paducah DOE deal is a lemon in its current form. Another black mark for GE controlled GLE. Question, when did SLX realise, because all the other significant players have walked after DD? IMO, the Paducah DOE deal must be renegotiated or else our tech will never be used.
3. IQE royalty is intriguing. Frankly, on even the most conservative view of future royalties IQE could buy SLX and be way ahead. I don’t think they will as there a couple of large blocking stakes that would not roll over at these levels ( me as well).
4. Cameco? Dark horse? They must have known Paducah deal was a dud but are only a minority shareholder, so probably couldn’t do anything about it (and bear in mind they might be conflicted). But still if Paducah renegotiated, maybe they would be interested in a majority GLE position.
5. Worst case. Tech not deployed. Cash box with a tasty royalty. I would in this scenario gladly give MG the boot. Remember on solar alone he pissed 50-100m of our money up the wall. Our money. His holding is shares received when SLX floated (not confirmed, but pretty sure) back in the day. He has never bought a single share but been handsomely renumerated for some truely appalling f-ups. His communication with us, the people who pay him a has been, well, I won’t say, in case he reads these and sues me for defo, but let’s say “near future”is classic Goldsworthian BS.
K
SLX Price at posting:
27.5¢ Sentiment: Buy Disclosure: Held
