My understanding is a dual listing in HK, but this would be only if LMB do merge with Hengda on ASX first and then the only purpose of listing on HK exchange is to add value not decrease value of the stock.
The Marger with Hengda would be a game changer because it would shift LMB from being a mining company to LMB/Hengda a fully integrated Graphite Technology company.
In this case LMB/Hengda will be rated by stock analysts at a much higher PE than a pure mining company. This is the point, otherwise there is no point to the merger in the first place and LMB could just mine graphite and be a supplier to battery manufacturers. By my calculations LMB as a pure mining stock, once in full production, would be ONLY $ 15-20 based on Known value of annual export from Australia (life of mine 21 years) and my guestimation of their annual export from South Korea (yet to be valued by LMB).
When calculating a value for LMB as a pure exporter of graphite I am using The Current spot market value not 'the floor price agreed with Hengda', which off take for only 50,000 from Wyndham and a PE of only 5 equates to a projected target value for first year for shipment of $ 4.00 (in line with other stock analysts)
HXG Price at posting:
78.7¢ Sentiment: Buy Disclosure: Held
