"LRS on the other hand are really selling their holders out for...

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kevin103

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15/08/24

09:23

Post #: 75214513
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Originally posted by stevenjd: ↑

thats a crappy deal for LRS, their PEA showed some really substantive upside.
20c takeover value at $558m.

And you can understand why PLS want it. They need to diversify out of AUS, as i have been identifying any AUS projects as jurisdictional risk from multi facets. (eg. China-Taiwan) IMO

Noting they are already trying to diversify into upstream battery materials.

LRS PEA had a capex of 253m, and a resource similar in size to ours.
It is a great life line for PLS, if the AUS assets get constrained.

And as well, they are looking to North American and Europe markets.

LRS on the other hand are really selling their holders out for crap.
Exposure to all the risk in why PLS want to diversify. And forgoing a massive upside multiple in their own destiny.
However, all things considered, if there is a China- Taiwan conflict, the Brazil assets could also pose additional jurisdictional risk, if China obviously cant get supply from AUS, and then leans into Brazil to nationalize assets.

So ask, why do they need to diversify out of AUS ? And have they made the best choice, under the same scenario ?

If they view LRS supply could diversify its exposure to North America and Europe, (same as we are) because if shit happens in China- Taiwan, they need another leg to stand on.

If they tried to low ball us, CE might like to tell them to add the value of Renard capex in place, in their bid.
Think about that, we come with the advance option on a lot of capex in place.
All the same, reduces our capex outlay to similar to what LRS were looking at. (wait for PEA for clarity)
Goes to show, the low capex / high value stocks are in the predators cross hairs.

This lowball takeover offer, of approx 558m is 5X our MC. Just saying.

Let us make our way to the front of the developers que for supply to North America and Europe also.
But not sell ourselves short. We have both our legs to stand on, if there is a China- Taiwan conflict. Unlike Aus or Brazil.

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"LRS on the other hand are really selling their holders out for crap."

Pls paying 20c and is also assuming all future capex, risks on the project. You would be mad not to take $560m valaution considering now Lrs holders wont be endlessly diluted via CR just to keep the lights on with a profitable Li mine still up to 5 yrs away i would think

WR1 Price at posting: 48.0¢ Sentiment: None Disclosure: Not Held
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