Member Info for MikeClarke

In one of the trade magazines yesterday was a report " The Americans are coming ". Lithia Motors are in advanced talks to buy Jardine Motors for £300m. Now this is based on their FY21 figures which showed profit before tax at £24.5m, against Looker's £90.7m, with turnover for 12 months at £1.66b, and year end freehold + long leasehold at £103m and net debt of £79.5m. If they do pay this, then where does this put our valuation when comparing figures. A minimum of £1.50 per share I would suggest, and probably more. It said that American dealers flush with cash are running their rules over UK dealerships, being very profitable and cash generative.

The market just doesn't seem to back money trees with assets far exceeding SP. They have never made so much profit with tight supplies, direct selling guaranteeing margins, and lack of competition discounts. this has been going on for 2 years, or so now, and investors still asleep, or is it not enough of a casino bet? Lookers policy of opening retail type units, and using existing dealerships for taking on Chinese electric brands, will only increase profitability, as they are generally more affordable.

Lookers to open another dealership/retail unit to represent Polstar, and may open more in 2023 along with Ora. Slowly, slowly catch a monkey goes the saying. Less capital intensive way of growing distribution turnover.

All these rail strikes will have done no harm to new and used car sales in the last 3 months plus. Lookers will do their trading update later this month.

Mind Blowing 9Billion when you consider this.

https://www.theguardian.com/business/2022/dec/25/sky-ad-uk-free-to-air-tv-ofcom

Lookers not made any major acquisitions for a few years. Probably got burnt paying over the top by previous management with the money they received for their distribution business. Seem to be growing very carefully now, taking on new Chinese EV distributorships, which will prove very wise in a changing market I feel.

On a recent investor presentation in October they were showed to have only 4.9% holding.

Suits the short term gambling mentality on AIM, rather than the longer term invest and hold for great rewards. ALL time will come for sure.

GK. It just makes Ewoyaa even more valuable for Piedmont.

Spot on 9billion.

You can be sure it will be way higher than that as Macquarie's figures will still be very conservative, as banks will never hang themselves.

The sooner, the better.

Neil Herbert said 36mt on his recent interview, so 36mt is not a good guess, but just repeating what NH said, and he is the chairman. This was what he was strongly hinting at, so probably not far out, albeit all assays not in yet.

Yes it would help if NH and SC spent more time focused on ALL, than their other projects, then they may not make these mistakes. Very poor at their level. Well at least NH does seem to contribute for his bonus shares etc.

What you waiting for Piedmont, Take us out for £1.50 a share using your shares to purchase. We will then have the upside in the 50% in ALL, and the 50% in Piedmont, and the rest of Piedmont. Win/Win I would say.

9billion.
With our resource increasing to 35mt+ by the end of 2022, it would be daft not to increase processing to say 3mt, which would still give mine life of 12+years, when we know there is a lot more resource still to come. As for the extra capex, it would be probably be about 1-2 weeks payback at current spodumene prices, and that is what it is about, producing what we can sooner to capture the crazy demand and pricing. If we sell any extra to Piedmont as with the 50% agreement, then it is at market rates anyway.

On top of that 9billion, Neil Herbert in his recent interviews said they were strongly looking at upping the amount produced each year to 2.5mt or 3.0mt, which would increase the spodumene to circa 380,000mt, which would give Piedmont their 50% 190,000mt's.

GK. Really good information, all brought together in one place. It certainly makes you think, and IMHO I still feel there will remain a big shortage of lithium supply going forwards to demand, for the foreseeable future, and even till the end of this decade. When you look at the Sigma presentation, and you look at the potential of ALL, with Neil Herbert's comments of resource possibly being up to triple the 35mt i.e. 105mt, you can see a good comparison to Sigma's earnings and potential. It could still be macro economics and China which could negatively effect the demand side, but interest and demand for electric cars is getting very entrenched, so hopefully not.

Yes. Well under way and been working on it for months.