Post by
rockhound01 on Oct 20, 2021 12:01pm
Neo Lithium Deal/Critical Elelments
Zijin Mining Group Co is acquiring Neo Lithium in an all cash offer at $6.50 per share. If you looked at the after tax NPV of both projects and weigh out the merits of both they are pretty equal. Neo is of course a brine project etc but if you look strictly at dollars and cents CRE is pretty close.
Cre has not also updated their feasibility study to align with the recent lithium pricing surge. As earlier posted by me I truly believe the company when they state that there is at least another Rose sized deposit on their property based on the preliminary work that has already been completed. This also does not include the other assets that they control.
Having said this the chances of CRE into a similar or better deal than NEO is not implausible. Given the present climate in North America the chances of entering into this type of deal with a Chinese company is unlikely but there are no shortage of other companies looking for the supply.
And here we are trading around $1.60 which I believe will be short lived based on the activity we are witnessing in the lithium space.
Comment by
110158 on Oct 20, 2021 12:26pm
At 6.50 would be a done deal for me....lol
Comment by
blaggers on Oct 20, 2021 12:42pm
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Comment by
elvishasnotleft on Oct 20, 2021 1:42pm
Not me. I want $10.00 plus. Only fair for hangin on to this company for 10 plus years. Will it get to $10+...who the puck knows.......
Comment by
elvishasnotleft on Oct 20, 2021 1:45pm
p.s. If Rock Tech can get to $9.38 ( 52 week high) Critical s/b able to reach $10.00 yes?
Comment by
monkeyhere171 on Oct 20, 2021 1:49pm
They are going to produce hydroxide we spodumene for now until further studies and permits are completed. Given the price premium of hydroxide to spodumene $3 is more likely the top for now. Once the feasibility study for the hydroxide plant is in place will have the jump we are looking for
Comment by
Jordsword on Oct 20, 2021 5:16pm
I would add that Rock Tech has a better PR strategy. They tout themselves as being "a clean tech company that produces lithium hydroxide". Critical's version is "we aspire to be a lithium mine" or something less impressive like that.