tiger2201 wrote: Hi neo,
It may take time to play out, I hope it is the case as well, so it will not triger my forced capital gain, like NLC's deal, into this year, hopefully next year.
1st, it's 3 partners JV, things will move slowly;
2nd, the Japanese is cautious people, they move slowly too;
3rd, LPI is planning to de-merge its WA hard rock assets, supposed to be mid of year;
4th, if 3 partners do merge into a single one, it may have to happen after LPI's de-merge.
I don't feel too much happening until LPI's de-merge. It is waiting gamne and need patience.
tiger
Good point about no merge without LPI WA de-merge.
I am not selling BRZ - the valuation is riduculous in present Li environment. It is 1/2 price to LPI (i give generous 50% premium to LPI controlling interest).
There are not many catalysts on the way, except market related ones, but they are large scale in nature.
Yes, Japanese are moving slowly, but because some time already passed, something can happen any time. Japanese companies also have reputation of giving fair deals. Compare former ORL to LAC or any Chinese related financing / bough out deals. I would rather wait.
Mitsui is a conglomerate - extra level of bureacracy, but at the same time, we never know. Battery division will cry, we will need more Li soon. One call can make all the difference.
"Small step for Mitsui will be a huge leap for BRZ"
I do not want to sell today, just to read news like "negotiation re-started" on Monday.
neosceptic wrote: tiger2201 wrote: BRZ has a good 2 days trading. People finally realize BRZ's value, but it is still under valued in comparison with LPI. LPI was up 27% yesterday in Australia.
Based on Google, LPI's MC is Aus$315.5M, assign $20.5M for their hard rock assets, LPI's MC is Aus$290M=CAN$271M. LPI owns 51% of JV, while BRZ owns 17%, so based on LPI's MC, BRZ should be worth Can$90M. AS today, BRZ's MC is only Can$41M.
Hold on your shares, BRZ has much more to go UP!
tiger
Every time LPI management speak about future plans, especially, when they mention that Maricunga is their prime focus, s/p of both LPI and BRZ surge.
They have to push development as hard as they can. We are at the point, when financing is the only obstacle.
The cooperation with Mitsui is good, but if Mitsui will play too hard too get card, LPI should openly pursue other directions, find more partners or buyers.
Right now, it is Li seller market. It looks like it will be for awhile, but market is not very stable and predictible right now. Timing in business is like location for real estate - need to act with sense of urgency to take advantage of present perceived trends and prices.
If company structure is a problem - merge.