Breaking Down the Mining News of the Day, Money of Mine

Money of Mine

Breaking Down the Mining News of the Day

An ex-underground miner, an ex-investment banker, and an ex-equity research guy breaking down the mining news of the day. It's a bit of entertainment, information, and occasionally some alpha.

Equity Bottom-Up

<ul><li>Lion Town mining services providing cost update for FY25</li><li>Operating costs expected to be AU$775 to AU$855 per dry metric ton of spod</li><li>All in sustaining costs projected to be AU$1,170 to AU$1,290 per ton, above current spot price</li></ul>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Lion Town mining services providing cost update for FY25Operating costs expected to be AU$775 to AU$855 per dry metric ton of spodAll in sustaining costs projected to be AU$1,170 to AU$1,290 per ton, above current spot priceThis content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Thematic (Sector/Industry)

<ul><li>Mr. Kerr's focus on resources in Australia and surprises in the industry, including BHP Anglo's moves and Liontown's share value drop</li><li>Corporate governance issues with Andrew Forrest and Fortescue, including concessions on hydrogen targets</li><li>Challenges in the hydrogen and lithium sectors, such as BP's Australian renewable energy hub proposal and Rio Tinto's large investment</li></ul>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Mr. Kerr's focus on resources in Australia and surprises in the industry, including BHP Anglo's moves and Liontown's share value dropCorporate governance issues with Andrew Forrest and Fortescue, including concessions on hydrogen targetsChallenges in the hydrogen and lithium sectors, such as BP's Australian renewable energy hub proposal and Rio Tinto's large investmentThis content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Biggest Mining stories of 2024 – AFR’s Peter Ker

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Back on the 15th August, lithium play <a href="https://www.smartkarma.com/entities/latin-resources-ltd" target="_blank" data-smartkarma-citation="entities:8770:1" rel="noopener">Latin Resources (LRS AU)</a> entered into a Scheme with <a href="https://www.smartkarma.com/entities/pilbara-minerals-ltd" target="_blank" data-smartkarma-citation="entities:7460:1" rel="noopener">Pilbara Minerals (PLS AU)</a>. PLS offered 0.07 new PLS shares for every LRS share.</li>
<li>The Scheme Booklet was slightly delayed to reflect Pilbara's recently adjusted FY25 guidance - nothing deal/project related.</li>
<li>
The Scheme Booklet is now out, with a Scheme Meeting to be held on the 16th Jan. Expected implementation on the 4th Feb. The IE (BDO) says fair &amp; reasonable.</li>
</ul>


Back on the 15th August, lithium play Latin Resources (LRS AU) entered into a Scheme with Pilbara Minerals (PLS AU). PLS offered 0.07 new PLS shares for every LRS share.
The Scheme Booklet was slightly delayed to reflect Pilbara's recently adjusted FY25 guidance - nothing deal/project related.

The Scheme Booklet is now out, with a Scheme Meeting to be held on the 16th Jan. Expected implementation on the 4th Feb. The IE (BDO) says fair &amp; reasonable.


Latin Resources (LRS AU): 16th January Merger Vote

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<ul>
<li>On 29 November, the <a href="https://www.smartkarma.com/entities/latin-resources-ltd" target="_blank" data-smartkarma-citation="entities:8770:1" rel="noopener">Latin Resources (LRS AU)</a> IE considered <a href="https://www.smartkarma.com/entities/pilbara-minerals-ltd" target="_blank" data-smartkarma-citation="entities:7460:1" rel="noopener">Pilbara Minerals (PLS AU)</a>’s all-scrip offer fair and reasonable. The offer is 0.07 PLS share per LRS share. </li>
<li>The key conditions are LRS shareholder and Brazilian regulatory approvals. No disinterested shareholder holds the 25% blocking stake, and low retail ownership lowers the headcount test risk.</li>
<li>An attractive offer and the lack of a competing bidder suggest a done deal. At the last close, for the 4 February payment, the gross/annualised spread was 2.9%/18.8%.</li>
</ul>


On 29 November, the Latin Resources (LRS AU) IE considered Pilbara Minerals (PLS AU)’s all-scrip offer fair and reasonable. The offer is 0.07 PLS share per LRS share. 
The key conditions are LRS shareholder and Brazilian regulatory approvals. No disinterested shareholder holds the 25% blocking stake, and low retail ownership lowers the headcount test risk.
An attractive offer and the lack of a competing bidder suggest a done deal. At the last close, for the 4 February payment, the gross/annualised spread was 2.9%/18.8%.


Latin Resources (LRS AU): Pilbara Minerals (PLS AU)’s Scheme Vote on 16 January

<ul>
<li>Back on the 9th October, <a href="https://www.smartkarma.com/entities/rio-tinto-ltd" target="_blank" data-smartkarma-citation="entities:13:1" rel="noopener">Rio Tinto Ltd (RIO AU)</a> reached an agreement to buy <a href="https://www.smartkarma.com/entities/arcadium-lithium-plc" target="_blank" data-smartkarma-citation="entities:40438:1" rel="noopener">Arcadium Lithium (LTM AU/ALTM US)</a> for US$5.85/share (~A$8.70/share), a ~90% premium to undisturbed.</li>
<li>The proxy statement is now out, with a Scheme Meeting scheduled for 23 December. The transaction is expected to close in mid-2025. The long stop is the 9th October 2025.</li>
<li>Trading wide-ish at a gross spread of 11.9%, reflecting the timing to secure regulatory approvals - notably from China - as opposed the Offer Price being viewed as opportunistic.</li>
</ul>


Back on the 9th October, Rio Tinto Ltd (RIO AU) reached an agreement to buy Arcadium Lithium (LTM AU/ALTM US) for US$5.85/share (~A$8.70/share), a ~90% premium to undisturbed.
The proxy statement is now out, with a Scheme Meeting scheduled for 23 December. The transaction is expected to close in mid-2025. The long stop is the 9th October 2025.
Trading wide-ish at a gross spread of 11.9%, reflecting the timing to secure regulatory approvals - notably from China - as opposed the Offer Price being viewed as opportunistic.


Rio Tinto/Arcadium: Trading Wide Ahead Of 23rd Dec Vote

Australia

Liontown Resources Ltd. explores for and mines base metals.

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Liontown Resources (LTR AU)

Liontown Tweak the Dials to Save Cash

Mining services companies are encouraged to partner and promote themselves before 2025, as Lion Town releases updated costs for FY25 with all-in...

Money of Mine

Biggest Mining stories of 2024 – AFR’s Peter Ker

Mr. Kerr focuses on resources, BHP Anglo makes surprising move in 2024, battery metal slump impacts Lion Town and Nickel West, Minray and Andrew...

Money of Mine

Latin Resources (LRS AU): 16th January Merger Vote

After a slight delay, this is done. Trading wide-ish at a gross/annualised return of 2.9%/18.3%. IF you can take down borrow cheaply on PLS, do so.

David Blennerhassett

Latin Resources (LRS AU): Pilbara Minerals (PLS AU)’s Scheme Vote on 16 January

An attractive offer and the lack of a competing bidder suggest a done deal. At the last close, for the 4 February payment, the gross/annualised...

Arun George

Rio Tinto/Arcadium: Trading Wide Ahead Of 23rd Dec Vote

This looks done. Trading at a 11.9%/20.5% gross/annualised return, assuming mid 2025 completion. That looks attractive. The key risk is one of...

David Blennerhassett

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