Assume all other VMC assets (including tenements. JV with IGO,...

Assume all other VMC assets (including tenements. JV with IGO, cash and shares already owned in RXL) are worth nothing.
110M shares in RXL is the only asset of VMC

The day after the distribution of 55M shares to the VMC shareholders the share price VMC will drop by about 11.5 cents. (Even if VMC share price was $21 due to a discovery of another Greenbushes lithium mine by JV partner IGO , the share price would still only drop by about 11.5 cents.)

(55M X $0.375 ÷ 178M = 11.59 cents.)

19 cents (current VMS share price) minus 11.5 cents drop in asset base) = 7.5 cents

Market Cap of VMC at 7.5 cents = $13.35M
Value of remaining 55M RXL shares @ 37.5c = $20.62M. (Infers that VMC will pay someone over $7m to take the remaining assets )

- in other words with RXL shares trading at $0.375 ,
VMC fair value before distribution date = 23 cents.

Now add other VMC assets.

5 months ago VMC had a small CR @ 12 cents.
Once profit taking from professional and sophisticated investors subsides the VMC share price should increase to it's intrinsic value.


GLTA