George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
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Rastuss my reading the verification process needs to be completed yet and then confirmed by labour court that strike not protected(SBGL fairly confident!). SBGL have rejected AMCU additional to CMMA proposal (which SBGL had not agreed anyway!) so think strike still on! Jabba playing hard ball ny the looks of it!
can anyone point me in right direction whats the takeover offer likely to be ?
LMI would probably double if the Board were to ditch the takeover which could happen within the next few months... If the PGMs were to carry on rising it will catapult upwards.
This can double in sp 12 months hold
Ruffer dumping SGL for LMI is interesting
Looks like a good catch ,I am watching this what the real value here £1.50p ?
It is very possable!....LMI chart bullish ATM
If the Board at LMI renege on the proposed takeover and give a positive update the shares will rocket. The current mkt cap of less than £200m is looking rather ridiculous. The Board refused an offer in 2008 of $10b from Xstrata as it was deemed too low... LMI since have had numerous rights issues. I believe the tide is turning for LMI and the Board should do what's in the best interest for Lonmin shareholders and that's not selling the company off for peanuts...
Not sure how you can deramp a share that's value is linked to another, in this case SBGL! It is very unlikey that LMI will hit a pound unless SBGL hits R2000 plus which I might add is possible in next week or so give PD still hitting highs and Stillwater must be making a mint given its PGM mix and favourable COP. The only other way is for the deal to be called off and market agrees LMI can stand alone which it may do given high PGM BP and weak rand!
Auto bot at work buying today! 1000,s of shares
£2-2.20 And with pt @ $850.....imagine pt @ $1200? miners lead remember BP is healthy in rand also....LMI cop needs lowering
I will delve into Amplats but its good to see at last you maybe seeing the potential that LMI holds.
Thank you for the link Rastuss. I agree that the PGMs stocks have had a few decent months but they have had years of demise. Most commodities have cycles and pt has bottomed out imho. SGL have had a torrid time with fatalities, debt worries and unions etc and their share price was taken down too far and because of the proposed takeover took LMI down with it too. I think that if LMI were not stabled with sgl they would probably be closer to 200 than the current 70.
At least LMI have the problem with regards to the furnace runs. I don't believe SGL have furnaces, refining and smelting facilities do they? These facilities must be worth $200m alone. The Board have no option to renege on this takeover. Pd has reached $1600 and Rh is close to $3200. This is no time be throwing in the towel.LMI has a future and it will be a much brighter one if it stands as an independent company imho...
Not sure I fully understand the proposed deal, is the R5700 back pay a peace and stability payment, spread over 2 years, if so its only an additional R1,200 above previously offered, rest seems to be same. If so thats good, but we will see what SBGL says, as suspect there could be a misinterpretation from AMCU we will see as I am probably misunderstanding!
I think the pt price will rise a lot more than most analysts think. It is being held down because of the supply demand situation but it only takes 2% of the gold bulls to switch into pt to change this. I think this will happen in the next eighteen months and when this does LMI will rise beyond expectations. This is why I will be voting against the merger. The Board have not acted in the best interests of all shareholders... The situation has turned in LMI's favour. Now SGL need LMI rather than the reverse.
100notout the points you raise are all valid, where we differ is our views on how LMI can survive long term without reliance on high BP and weak currency, that requires a reduction in COP! That can only be achieved by some form of cooperation with SBGL's PGM mines is my view, rightly or wrongly, time will tell! In the mean time SBGL ticking up nicely!
I have to disagree Davde with regards to circumstances not changing. LMI no longer have the banking covenants that were holding LMI back. Compare the safety record between the two companies, SGL has been shocking. Compare the relationships with regards to the unions. SGL's gold operations are poor. LMI is cash positive, look at the debt SGL has. SGL is facing legal suites in the U.S. I could go on but I think the circumstances have changed significantly. Oh and the basket price has increased and the ZAR/USD has weakened. LMI presents a compelling investment imho...
Hopefully no material impact on LMI.
It is my under standing that the potential synergies due to the co location of LMI/SBGL mines, understated in my view in the bid, offer a significant opportunity to reduce COP and significantly increase profits for all stakeholders. Shareholders may under these circumstances be prepared to support a rights issue! PT needs to rise soon and only speculating but you never know! Still think SBGL takeover best for LMI circumstances not changed that much!
You are certainly right re SBGL problems. LMI has its own issues but do think they can survive for a few years at current BP and with weak rand waiting for PT upturn in price so can see your rationale for voting against deal but still think SBGL deal will be better long term as there are significant synergies with SBGL's South African PGM mines. If for instance LMI bid for those l think institutions could see rationale and support such a move and fund it as without a lower COP LMI cannot survive long term it cannot survive on a high BP and weak rand the COP must be competitive!
As a LMI holder I don't want to be diluted into a company that has numerous problems. I am happy to wait a few years for the pt price to increase as the potential rewards will be huge. I think that a few large institutions will vote in favour but I don't think they will get 75% as required.
LMI offers a discounted price for SBGL shares, so is a cheap entry into SBGL. Appreciate PGM basket price good at present but unless LMI starts generating significant profits and that requires PT increase as well (possible in next year or so) SBGL offer likely to be accepted by institutional shareholders as this offers better long term growth and profit potential than a stand alone LMI, in the absence of any other bids!
Offer is now a joke imv....i say no and will vote no unless they better the offer
Take a look at the remainder of the PGM basket. If pt rises by another 20% the LMI full year profit will be larger than the current mkt cap. This deal makes no sense at all for LMI holders. If for any reason they think LMI would be better off taking the SGL offer it would make better sense to invest directly into SGL...
I will not be voting for this deal and I know that I am not alone. If pt rose by another 20% a potential bidder would offer a bit more than what SGL currently have on the table. North of 300 would be the starting point imho.
74.20 close + and its off to to races imv....ruffer must think the same as they seem to be holding 3.99%?