Member Info for Laverda

You too Sunshine - cheers

Sunshine when the RNS drops the spread will be up there too, it always is, which is why when a share flies upwards and there are a load of typists saying they previously sold and bought back in after the RNS on a low we all know they are talking cr*p, the spread does not vanish for a privileged few and buying in when a share is rising fast is difficult at the best of times in small numbers, definitely not possible in millions. Especially when a high percentage of shareholders are holding out for a high multiple.
But watch the stories flow.

Telprint, nothing bad about it when it is up

Every time any bad news comes from Mali.
However they do not seem to read anything properly.
It is talking about an event in April. They must be low on bad news at home.
They could just broadcast some good news from home for a change.

Creaser a total buy out should be more than that. Based on the lithium price I posted yesterday and the tonnage in the original study, turnover would be over 1,000,000,000 dollars per year, insane money.

The longer this contract takes to draw up, the more likely that this is a JV (partial buyout) or a complete buyout.
It is much quicker to draw up a contract with an interest free or very low interest loan. Much less complicated.

https://www.metal.com/Lithium/201906260003

To think we thought 680 would not be a bad price...

Clapa, that is the one thing I would not have predicted, to be able to get in at this stage at this price. I keep saying it, but I blame the website, it is the first port of call for a potential investor. To me unless you decipher it carefully, you would be forgiven for thinking we are at the 2017 stage and that we were going to get 680 dollars per tonne for our lithium.
They could even be forgiven for joining dots and thinking that the offtake partner and price are tied when they are not.
The old study should be in the archive and only the recent updated study should be in the overview. Plus the updated study should have a clear line which states it uses conservative figures well below current market prices.

Oneandonly- agree 100%, which is why, in a fantastic way, this deal is so difficult to predict. What is proven is worth an absolute fortune, way beyond any figures I imagined when I first researched this company long before investing years ago.
The total lithium patch is 800 square kilometres, the initial indicators are that there is lithium in much of the additional acreage too.
The biggest return for us would be an interest free or extremely low interest loan and we keep the lot. If all the acreage is good ground the value on lithium alone takes the company value into billions.
A JV would remove risk in the percentage bought, ie 40% bought, 40% of the risk gone.
With lithium so valuable, in demand and in short supply over the following 8 years anything could happen.
A crazy price buyout cannot even be completely ruled out.
I imagine all of the offer types were on the table. We may find out after a deal is struck and the legal guys are happy with the contract wording.

They may be playing ping pong with a contract, if it is a JV there could be stiff penalties included.
We are in such a strong position the contract may include rare or new clauses that the legal team will need to be very careful over wording.

Elcobble, I agree, this is a share I am not worrying about at all. No matter what the deal it will be multiples of my initial expectations when I started looking at it years ago.
Any impatience is with excitement rather than the usual creeping should I shouldn't I routine.
Everyone with their feet on the ground should be happy with the outcome.

Elcobble, the ones I have seen are a trading halt, then a price per share, plus shares in the remaining part of the company.
I wonder if there is a buy out on the table with such a shortage of supply.
I would prefer us to mine with a really cheap, preferably interest free loan. If we sold off 40-50% to do this and received a cheque, that would be great.
Loads of income from lithium and gold fields developed from our own cash, no dilution.
That is big compounding of company value.

Clapa, you mean there is a lot to shout about, but they didn't bother on the website.
We are in the position that investors in explorers dream about, for most it doesn't happen.
The quality of Bernard as an experienced geologist has shone through and Steve's credentials for setting up and operating mines are above questioning, the evidence and the boards he has been on are there for all to read.
The website is like a challenging treasure hunt.

Still dire Daz. Underlined old news in the lithium overview 2019 and 2020 events including the mining licence application. Shoddy work on the website.
Fortunately their exploration and Steve's many mines are not.
Unbelievably crap website.
To anyone who does not know, we are still waiting for 2019 and 2020 events to materialize, based on that overview. Achieving the licence and a few majors interested in backing us appear like non events in the overview, no underline and not at the top of the overview.
I wonder how many would be investors read that and thought it has a long way to go and looked elsewhere.

Jay I can live without the excitement, a nicely topped up investment account will do nicely.

Stephen I agree, 500m would be a gift in the current market.
Based on 1000 dollars per tonne it is a fraction of market price and the additional acreage could hold more lithium than the original acreage a double gift if sold for 500m.
A sale price if it happened, in my opinion would be above this.
However a JV with construction costs included on their side could be near the NPV. Maybe 50% totalling 300m all in?

Creaser you hit the nail on the head with if the money is right.
They have to take the offer which is best for shareholders - with lithium in short supply for the foreseeable it is ultra valuable, all the other current supplies are tied up - which makes this outcome so unpredictable.
If a cheque was big enough for the entire venture, this option completely removes risk then that offer would be taken, a cheque large enough for 50% takes 50% of the risk off the table and so on.
An interest free loan, penalty payments per tonne for not taking lithium and floating with the market price would release our greatest value, but all risk remains on the table.
Impossible to guess the outcome.
But a nice problem to have.

Dusty, I think that the majority of investors in shares do not research the specific industry and similar companies, some do and you can spot the miners and oilers quite easily.
Therefore the rest follow patterns. Normally after an announcement in a general share such as the last one and the one we are waiting for there is a fund raise. So they aren't diving in. That will not happen here, it doesn't work like that.
They will look for similar shares and see what their return was, but their offtakes were signed in two parts, the tying one at a time when lithium was on a low, because if you dug it out of the ground, even though consumer demand was there, the processing etc was not yet in place, crazily for a short period, supply was greater than demand and in fact some lithium mines closed, including the one that our Steve on the board kicked off in Australia.
This is well poised to potentially make a fortune, right time right place. As usual new investors will jump into newer companies earlier after they see what happens with this company and miss the boat.
As happens with loads of people who look at historic performance and invest in funds at the top of the market, rental properties after the boom and so on.
DYOR

Elcobble, good point re gold, my comment related to lithium only too.

Onlyking, generally speaking explorer to established junior miner is a 25 to 50 bagger.
We may go JV, which is an instant increase in NAV, money in the bank, then a reduced multi bagger from ongoing.
But according to some mining share guru I watched years ago that was the average multiple.
The earlier lithium guys got stuffed with that lack of infrastructure temporarily dropping the price to 480 per tonne, that seems to be tainting Kodals share price, clearly a lack of research.