[ASX:A40] Alliance Mineral Assets Ltd (Previously TAW/AMAL)

Thargor

Well it was a messy merger but Alliance Mineral Assets starts trading this week on the ASX, think a few of us are still holding so Ill make this thread instead of cluttering up Share Picks.

Anyone still holding? Very promising now compared to the 50:50 dual listed operation imo, low debt, soon to be in profit, run by the guy who wrote the book on lithium exploration, still the majority of their territory left to explore. Not a buy rec but if you want a bit of lithium exposure for the electric vehicles and grid storage boom you could do a lot worse but DYOR...

Thargor

By the way if you are thinking about getting in they might be dumping the shares of all the ineligible shareholders hwo didnt get their TAW shares converted to A40 soon so might be worth holding off or researching that first, Im not sure when thats happening or what effect it will have, probably not much seeing as most peoples brokers like Degiro converted Irish and UK holdings without issue, everyone in Oz was fine.

xDerp

When should these have actual prices? I've a pair of TAWANA non tradeable with prices close to zero.

Thargor

It has traded a couple of times this week, in a trading halt now pending off take announcement, probably for the best considering the hammering recently.

cefh17

xDerp wrote: »

When should these have actual prices? I've a pair of TAWANA non tradeable with prices close to zero.

I think you're referring to the Cowan shares that were issued in the Summer

cefh17

Thargor wrote: »

It has traded a couple of times this week, in a trading halt now pending off take announcement, probably for the best considering the hammering recently.

Price bottomed out to 0.16$ after the Q4 results released, increased my holding to bring my BEP down to 0.20$. I can't see it going much lower and it seems from the HotCopper posts that they've figured out a lot of the issues (water shortage etc) so here's hoping it started to get lively again soon

cefh17

cefh17 wrote: »

Price bottomed out to 0.16$ after the Q4 results released, increased my holding to bring my BEP down to 0.20$. I can't see it going much lower and it seems from the HotCopper posts that they've figured out a lot of the issues (water shortage etc) so here's hoping it started to get lively again soon

Up 18% last night, record monthly production. On we go

Thargor

Yeah hopefully this will be the last bad quarter and it will be steady increases from now on, lithium ETF looking promising aswell.

littlevillage

cefh17 wrote: »

Up 18% last night, record monthly production. On we go

Yeah, great jump last night. About time too, was starting to get worried that the sloppy Merger process had caused investors to seriously lose faith.

bcklschaps

just got back from the casino ...dropped a few 100 on the cards tonight :-(

..lo and behold ...my A40 is up €300 !!

Nice one.

littlevillage

Not specifically A40 ...but a related mining story from ASX.

NZC Management are recommending acceptance of a cash takeover bid from Chengtun @ AUD $0.37.
NZC were trading around $0.16 until about two weeks ago. AUD $ 0.315 as of close last night.

Soo nice profit for anybody who took the plunge a few weeks back. I added a bit myself at AUD $0.20 just to take my BEP down a bit ...well happy with this news ..obviously.

Even still at $0.315 theres still a 20% premium to be trousered if you buy now in the hope that the take-over goes ahead without any hiccups

littlevillage

A40 hit a low of AUD $0.16 back in 26 April ...been steadily climbing since then. AUD $0.195 now. Lithium majors are now apparently switching away from brine Lithium and focusing more on Hard Rock Lithium. Consequently A40 might be in play, as its trading at a discount compared to peers. Also expected news of new offtake partner in the wind.

Thargor

Lots of m&a activity talk all of a sudden aswell.

crushproof

Still waiting for a large jump, I'm still a good bit below b/e point. Was tempted to buy a few more at 17c but even last month there was some uncertainty. Thankfully seems to be on the up but still way off the high of 56c at the start of last year.

littlevillage

Just when things were humming along nicely... they have announced a major capital raise from the sale of new shares..

This is going to hurt the SP at least in the short term. Lets hope its short term anyway. Speculation that maybe Galaxy or some other competitor might get a blocking/controlling stake on the cheap....and put a spanner in the works of any potentially lucrative take-out offer from a large player in the future.

With the whole uncertainty about the Cowan spin-off and the slowly slowly merger process with Alliance... they are testing the patience of long term holders now.

Thargor

Yeah just when you think they've put all the BS behind them another kick in the balls, no shareholder vote though so it seems they're limited in how much they can raise. Still a huge resource upgrade to come though so hopefully won't suppress things for too long.

Thargor

Meh, 10% up not a bad result after a cap raise, GXY and Jiangxi on board looking forward to expanding the resource, onwards and upwards hopefully. Wonder if GXY will just take them out at some point?

crushproof

What's are the current thoughts here folks? Another name change it seems, have they lost the plot? Definitely one of my worst investments at the moment, can't believe it's down from a high of 58 cents at one stage.

littlevillage

crushproof wrote: »

What's are the current thoughts here folks? Another name change it seems, have they lost the plot? Definitely one of my worst investments at the moment, can't believe it's down from a high of 58 cents at one stage.

Testing times for sure.

But at AUD$ 0.17 they might just be a canny purchase at the moment. If the SP goes back to anything like where it was 0.40-0.50 range, you will be laughing

EDIT Just had a look ... 21 buyers and only 1 seller as of this moment. Kinda supports my hypothese, I think

Thargor

Getting hammered down along with the rest, I'm going to forget about them and see what happens by Christmas, if no improvement might just pack it in and take the hit.

beertons

Pilbarra gone to mush too, down to my BEP now.

Thargor

Well looks like this is a bust...

bcklschaps

Thargor wrote: »

Well looks like this is a bust...

Maybe.... or maybe a really good opportunity to lower your BEP and hopefully trouser the difference when Lithium sentiment improves (which it surely will eventually).

SP could be back to AUD $0.25 by the autumn.

Remember Galaxy bought in at AUD$ 0.20 just a few months ago.

You can buy in now at AUD$ 0.10. theres gotta be upside here.

Thargor

Yeah I know, I would be tempted to double up here tbh but probably won't, they're in a better state than a lot of competitors, things could turn very fast. A shocking drop from the highs though and such a quick change in sentiment.

bcklschaps

Thargor wrote: »

Yeah I know, I would be tempted to double up here tbh but probably won't, they're in a better state than a lot of competitors, things could turn very fast. A shocking drop from the highs though and such a quick change in sentiment.

I doubled my holding this morning at AUD$ 0.10 .


Hopefully I won't be doing the same at AUD$ 0.05 in a weeks time.

Thargor

0.05 and Ill definitely be joining you, the sheer scale of this drop it might even happen.

beertons

Doubled down @10c aswell.

Gruffalo22

Thargor wrote: »

Well looks like this is a bust...

My worst investment by far but I haven't been tracking it as my investment was very small

crushproof

Horrendous investment, stock price is being wiped out and there appears to be cash flow problems. At this stage I believe could go either way depending on the market conditions, bust or boom. If it does go up I don't think we'll even be seeing the good days of 55c again.

Thargor

Another trading halt, wonder what fresh kick in the balls will be delivered on Wednesday morning...

Sir_Name

I have this holding more or less written off....
https://www.afr.com/companies/mining/lithium-bust-puts-bald-hill-mine-on-the-edge-20190814-p52gy3

crushproof

Deanov wrote: »

I have this holding more or less written off....
https://www.afr.com/companies/mining/lithium-bust-puts-bald-hill-mine-on-the-edge-20190814-p52gy3

Same here, first investment I've had to write off. Very disappointed as I had high hopes initially when it was first mentioned on here, fairly certain a lot of other folk were in the same boat.

It's a reality check at least, no matter how much research you do and how much time and money you invest at the end of the day it's all at the mercy of the markets and who's in control of the company. Shambolic leadership for over a year now.

cefh17

News breaking about a HK based equity firm agreeing $60m funding for 20%, allowing ability to clear down debt. Don't have link to hand but search hot copper

cefh17

https://hotcopper.com.au/threads/ocp-asia-turnbulls-keshik-swoop-on-lithium-play-alita-resources.4911976/#post-40047229

Thargor

Looks like a valuation of 20 cents per share which is just below my average, if it spikes anywhere near that I'm getting the feck out and waiting, lithium price still in the toilet. Glad it's not dead though.

bcklschaps

Interesting times. Things looked bad last few weeks with SP tanking and stories of cash flow problems etc.. Everything back on track again now, hopefully a big jump in SP as soon as the trading halt comes to an end.

Will need lithium prices to recover strongly though before we see Aud $0.40 per share again.

crushproof

Administrators appointed. I imagine shareholders will get SFA. Good luck to all.

cefh17

Welp that escalated quickly, expensive lesson learned

Prezatch

Bitter pill to swallow, lost a bit on this and was tempted to double down, glad I avoided it. Some talk of the voluntary administrator being able to buy us some time or get some interest from other interested parties to generate competition against Galaxy, but really I would be surprised to come out of this with anything at this stage.

I'm still at a loss as to how it's come to this really given the mine asset and the amount of stock on hand that surely could have been flogged firesale below market price. Why on earth was cash burn let continue with such a material risk of not being able to pay the loan creditor.

If anyone else here is in AJM I would advise getting out now also - things not looking great there either and their market cap is still quite high at nearly 200m AUD. Could see them dropping to 4c or 5c. Even PLS could be at risk.

bcklschaps

Wow.... there seems to be a game of brink-man-ship going on between A40 Board of Directors and the Debt holders.

Hopefully we the plebeian shareholders don't lose everything

Prezatch

Receivership announced just there, GXY in the driving seat now so that's it. Shocking run of events, from 21c in May to zero in August.

GXY also released some truly horrendous results for the 6 months to June with things only worsening since then.

Gruffalo22

Lesson learned here is not to invest in recommended 'sure thing' start ups. Thankfully I had a tiny position in this and large gains elsewhere to compensate.

Market conditions for lithium, a key ingredient in the battery industry, have worsened because of lower demand from Chinese customers after a change in the country's electric vehicle subsidies and global trade tensions.

Thargor

What a joke, Australian management culture has to be the scummiest in the world, lie through your teeth and pile up the bonuses and rewards while you borrow and dilute the sh1t out of everything, Im never touching the ASX again.

Thargor

Is anyone expecting to get anything back? I knew I should have sold when they changed the name, was hovering over the Sell button for about 2 days aswell... Wonder what the story is with the Cowan shares?

Gruffalo22

I'm not expecting anything back on this. I won't be buying on the asx either. I buy on the US exchanges only as it's very cheap and the US is a huge market and is doing well.
I'll be buying established profitable companies at a discount

littlevillage

Thargor wrote: »

Is anyone expecting to get anything back? I knew I should have sold when they changed the name, was hovering over the Sell button for about 2 days aswell... Wonder what the story is with the Cowan shares?

Would be hopeful of getting something ....on Hot Copper they are talking about a 1c or 2c per share. Remember A40's assets are worth more than their liabilities soo there will be a surplus ....how much of that is eaten up by the cost of going through this administration process remains to be seen.... also legal eagles, outstanding wages, pensions etc. also need to get paid before junior shareholders like us.

If theres one silver lining to any of this, it is that Cowan Lithium was spun off into a seperate company last year so unaffected by any of this. (Well financially unaffected, maybe reputationally damaged though).

pugw

Any update on the alliance situation?? I hadn’t been keeping an eye on them and just saw this thread. Are they totally worthless? What’s the position with the other non tradable Tawana shares ! Is this the spin off company?

Heiser

So it looks like we're going to do ok out of this, how well depends on a few factors but it's no longer a write off

Heiser

FIRB rejects Austroid takeover of lithium miner Alita ResourcesEXCLUSIVEBy TANSY HARCOURTSENIOR REPORTER7:02PM JULY 20, 2023

The Australian Foreign Investment Review Board has rejected a stealth bid by a China-connected company Austroid to take control of one of Australia’s only in-production lithium mines – Bald Hill – owned by Alita Resources.The knock-back sends a clear message about the Albanese government’s view on foreign ownership of Australian critical minerals companies.In a notice on the Federal Register of Legislation, Federal Treasurer Jim Chalmers rejected the application by Austroid, which owns all the debt in Alita, from taking the company over via a deed of company arrangement.It’s been a messy battle for control of the lithium miner, which collapsed in 2019 when prices for the precious mineral, which is critical for making batteries for electric cars, slumped.Since then lithium prices have surged to more than $US6000 a tonne earlier this year, although they are currently closer to $US4500 as countries and companies have sought to buy the commodity needed to help meet zero emissions targets.But despite bumper prices, Austroid signed a secret agreement seen by The Australian to sell its lithium at significantly below market rates, at a range from $US800 to $US1500 a tonne for 6 per cent lithium conIn 2019, China Hydrogen Energy (CHEL) purchased the debt in Alita and made an application to the FIRB to take control of the company, but withdrew it in April 2020 when then treasurer Josh Frydenberg indicated he may move to block the deal.CHEL, which is registered in the Cayman Islands, then sold the same debt to the US-registered Austroid, which shares the same registered director – Mike Que.Mr Que is also a director at Lithco, an Alita subsidiary now running the Bald Hill mine – which is in turn subject to an investigation as to why it’s selling its lithium to China at dramatically below-market prices.Mike Que’s mainland China-based father, Que Wenbin, owns a lithium battery and EV manufacturer in China known as Sichuan Western Resources, according to Morningstar.The decision by the FIRB shows the Albanese government is not afraid to take hard decisions as it navigates trying to improve its fragile relationship with Beijing, alongside Labor’s desire to keep the processing of Australia’s critical minerals onshore.What will happen next is unclear.Austroid could not be reached for comment.However it is likely that the global giants of lithium will be interested in snapping up the debt, as may Chris Ellison’s Mineral Resources.Austroid is understood to have invested heavily in returning Bald Hill to production, and is now believed to be owed as much as $250m, including the value of the original debt bought from CHEL.Canaccord, an equity holder in Alita before it was placed in receivership, and Austroid, has told the Supreme Court the company could now be worth about $1bn.Since Bald Hill restarted production in April 2022, the miner has sold 145,306 tonnes of lithium to the Hong Kong-registered Yihe Cleantech Material Limited, according to customs data. The last shipment was on

roosterman71

What does all that mean?

Heiser

Its most likely the company will be liquidated. The mine will be sold off to the highest bidder and debts paid off. It's estimated the mine is now worth between 1-1.5 billion Aussie dollars and debts are nowhere near that which means the shareholders will get something.

Still a way to go yet but this is great news for shareholders