Initiated coverage 82c Buy Valuation, page-47

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MOSSuMS

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07/04/16

17:57

Post #: 17449287
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Originally posted by Thesimmos ↑

I wouldn't say that Pilbara's best days are behind them things will get better, but I would rephrase that statement and say that their best days are a long way off. 2018 it appears by their investor presentation and by that stage Galaxy and their partner will have Sal De Vida which based on current and projected lithum prices will exceed $1 billion dollars per annum alone before expenses. Will Pilbara be receiving that kind of return?

Today's notice for Pilbara indicates that they will be adding a further 224 million shares. Compare that number of shares to General Mining which is currently producing. ( anyone got a quick figure they can contribute? )

Shares currently on offer is 856 million 2.25 million convertible notes 48.8 million unlisted options. All added together with the incoming shares comes to a total of 1.131 billion, around 100 million less than Galaxy resources however Galaxy don't need to build anything and still receive income that is more than enough to keep the company afloat and seek new investment and upgrades on their assets and Galaxy's market cap is 100 million less than Pilbara right now. Take a look at General Minings $138 million despite having income and the ability to expand without the constant fear of them needing to go to the market and dilute their share price.

I have no doubt that Pilbara will be back again with their cap out, and it may not be to all investors, but maybe the institutions so the small players have no choice but to accept the share dilution.

Plus, I predict that if the share price isn't down to 38 cents for Pilbara by the time those new shares are issued, they wont take long to get there once profit taking occurs and people wait to either buy back in or go elsewhere as it appears today. 'it may not happen over night but it will happen'

I hope this helps.

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I didn't relapse they were going to share in the brine too - apart from the close ties with GXY, what's the GMM interest/stake in Sal De Vida?

GMM Price at posting: 50.0¢ Sentiment: Hold Disclosure: Held
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0 Great analysis

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Initiated coverage 82c Buy Valuation, page-47

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