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What will IGO do re the MCR takeoever bid?, page-49

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16/04/23

20:23

Post #: 67300782
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Originally posted by SpikeCanonBooks: ↑

Hi Flippa

IGO certainly are spending a lot of money lately, but their lithium operations in Greenbushes and Kwinana are already causing IGO's earnings to sky rocket.

UBS has them forecasted to:
- Earn $1.8bn in FY23 and to have $400m cash on hand by 30 June 2023.
- Earn $2.1bn in FY24 and to have $1.85bn cash on hand at 30 June 2024.

As such, while I agree they are spending big with WSA and the new proposed Nickel facility, they certainly have the money coming in to launch a bid for PAN if they choose.

I'm relatively new to this so I wasn't around for the 2019 IGO offer for PAN, but I would assume based on the above that IGO are in a far more comfortable position to pay for PAN now than they were then.

Without the need for debt and with a downstream processing plant ready in 5 years, I think it's lining up for IGO to make its move for PAN soon.

As a side note, it's looking like MIN will top IGO's bid for ESS sometime this week, after MIN did some heavy buying on Friday. If that deal falls through for IGO, maybe they turn their attention to PAN?

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The nickel price - if it can get to 30 k or more and stay there - is what will deliver PANs real value - everything will matter naught

PAN Price at posting: 14.0¢ Sentiment: Buy Disclosure: Held
5 Upvote

0 Great analysis

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