George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
I thinks it’s AB’s way of telling us it’s unbelievable cheap and time to load up.
It’s no point increase holding 0,5% to make some more money
And I think it’s more likely AB will sell the complete company in 1-2 years debt free and cash in.
Let’s just hope Boris didn’t read any of the Swedish books as young.
https://en.m.wikipedia.org/wiki/Pomperipossa_in_Monismania
MRC, I don’t care if they can afford or not.
With current valuations and situations they need to do what is best to get most money out if this investment.
The tax is 25% but only reduce FCF 10-15%.
And this valuation is not about if they make 1b next year or now only 850m.
It’s trading at PE 1 still with tax.
The small fast food joint down the road maybe you need pay PE 5 for and commit working 7 days a week.
If they choose keep bonds and invest billions in new developments I am out.
There better options
Depends on what investment, develop new field I am not sure because you can probably buy existing fields a lot cheaper.
Look at Romaron post below. We had an EV of 2,5b back then with I guess half oil price and 1/3 of FCF.
Now we at 1,5b EV.
Think AB need think twice how to get most money out this.
Some tips for James
Make a poodle
To make a poodle stands to apologize (publicly) in an extremely humble way or to make a complete reversal for previously shown arrogance. If the excuses are not quite as humble, you can make three-quarters and a half poodle, respectively.