Nemaska Lithium Inc NMKEF

RE:RE:RE:Drivers seat now

[mick1888]

Charlene, good point. As I've said before, many of our competitors have put a hold on their current expansion / investment plans. What about share swaps as an option in any potential merger? The timing would be about right to benefit NMX where the peers share price is not too high before potential rapid climbs in the next few years.... ;-)

As the mine is well advanced in construction, Livent would be my favoured partner as they have the relevent chemical experience that would benefit this project.

GLTA longs

Charlene wrote: NPV valuations have drawbacks.  There are other ways on valuation, for example applying P/E multiples of peers is more common.  Peers are currently trading at a multiple of 20-30x Earnings.  At current prices, NMX at production should generate $300m/yrs.  Should be around $200m in earnings each year.  That translates to a valuation of $4-6billion. 

If you are a peer (e.g. SQM or ALB) looking at NMX, its easy to justify spending $2billion on NMX. That would be a smart acquistion.  Prices could go higher if bidding heats up.  While PG's offers is nice, it is not the best move for shareholders.   Now that GB is out, the acquisition option could be quite compelling. For shareholders that still want to participate in NMX, they would take their cash and reinvest in the acquirer's stock.