RE: Round in Circles12 Mar 2023 11:23
cloudbay this doesn't make sense....
Piedmont also have 9 .9% of ALL , so altogether they own 55% and ALL only 45%. That is before MIIF come in
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Lets start again. If we are talking from a valuation metric point of view of All share price, then initial 9.9% shares that PLL have bough in to All, are not affecting any valuation metrics like PE, dividend payments etc...
With this 9.9% Pll is just a shareholder like you and me, the only difference is that Pll got more shares than you and me because they bought at 20p and 25p. So any share price appreciation or dividend they will gain the more than me, not sure about you though...
Regarding valuation the real value that PLL got out of All is the 50% of the project, hence All shareholders, including the 9.9% owned by PLL are left with the remaining 50%.
So when it comes to what is the EPS of Atlantic, we will get 50% of net profit and divide it by All number of shares including PLL shares. Then there is the buy in from MIIF, again if the MIIF buys shares of the project in exchage for cash to be used by the company, then for us shareholders there will be less profit, if MIIF buys shares in Atlantic Lithium it all depends at what price they buy shares, regarding share price appreciation and future dividends, but about financial metrics on valuation it will still be based on 50% of the profit.
In other words If All issues new shares there is a dilution of the profit for 2 reasons, depending on the price of shares issued and also because there are now more shares issued.
If another entity buy existing shares of a company like PLL 9.9% then it depends at what price they bought the shares compared to you and me, but any profit will still be divided by the same number of shares, not more.....
Same is valid (imo) for MIIF buying in , this is why I suspected with my crazy conspiracy theory that behind the shorting there may be some interest for the MIIF to get in at cheap share price...#
But may be just a coincidence
Still if I promise say $500000 to Blue Orca to set up a smear campaign on Atlantic, considering that I want to invest $30 million, I just need to lower the sp of Atlantic by 1.66% that I am making gains.....
Anyway most likely is just a coincidence....
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