i strongly suspect ffx won't retain any interest in...

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06/03/21

14:18

Post #: 51571642
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Originally posted by manny100: ↑

Both Companies will benefit:
FFX will be able to devote all its human and financial resources to GOLD at a time its 'ramping up'.
Depending on the terms of the Agreement FFX may well receive cash or equivalent for the % that goes to the JV/partner. That would likely have a positive effect straight away. FFX will have some Gold CAPEX cash and/or acquisition cash. Depends on the Agreement.
Macquarie will sort that out. I would be surprised if FFX gave a % of Goulamina to a JV/Partner for no consideration. Usually in these circumstances the disposing Company (FFX) retains an interest in the Newco instead of cash or kind and the JV/partner brings Cash and expertise to the table.. Still stranger things have happenned. I think the Doc will be pushing for some cash.
If the Demerger deal includes Finance for short term Plant Construction and offtakes its a fair bet we see a quick move up for Newco. There may of course be some initial dumping by those who only want GOLD exposure.
We could expect to be rated on a par or close to peers who are ready to commence construction.
The sum of the 2 parts IMO will far exceed the current SP.

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i strongly suspect ffx won't retain any interest in lithiumCo. the purpose is to separate gold and Lithium via in-specie distribution to existing shareholders. the link will be the shared services agreement and any shared directors.

i.e. the Lithium ownership will be passed to ffx shareholders rather than held through ffx. As per announcement maybe using different words but same effect imo.

FFX Price at posting: 19.5¢ Sentiment: Buy Disclosure: Held
9 Upvote

0 Great analysis

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