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50.5¢ leo lithium limited

Agree they need to tread carefully with Ganfeng, with Mali...

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Paulweller66

2,468 Posts.

809

06/01/24

12:11

Post #: 71754544
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Originally posted by Red Baron ↑

Not quite right

Ganfeng own 55% of MLBV, Leo own 45% of MLBV (the JV holding company)

When the Mali Government get their free carried 10%, MLBV will own 90% of LMSA (Goulamina)
Ganfeng own 55% of 90% = 49.5%
Leo own 45% of 90% = 40.5%

If the Government elects to purchase the extra 10% reducing MLBV to 80% again it will reduce Ganfeng's holding more than Leo's because they own a bigger share of MLBV. Any attempt by the Government to increase their ownership has a bigger effect on Ganfeng than us, which is why the Government needs to be very careful with how they treat this Chinese investment.

Although 1% doesn't sound like much, when you consider the billions of profit - it becomes significant.

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Agree they need to tread carefully with Ganfeng, with Mali potentially being a hub of producers Ganfeng would surely be looking at cementing their pole position in Mali . With a few other companies making progress and with good deposits why wouldn’t Ganfeng look at partnering with most if not all…..saves poking around finding other deposits around the globe .

LLL Price at posting: 50.5¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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