Leo Lithium Announces Shareholder Distribution Following Mali Lithium Sale
LEO LITHIUM LIMITED (LLL) Share Update December 2024 Wednesday 4th
Leo Lithium Announces Dividend and Capital Return Post Mali Lithium Sale
Leo Lithium Limited (ASX: LLL) has announced plans to distribute proceeds from its recent sale of Mali Lithium BV, offering shareholders a capital return and a special dividend in January 2025.
Instant Summary:
- Intention to distribute A$0.172 per share in January 2025.
- Includes a capital return of A$0.014 per share.
- Unfranked dividend of A$0.158 per share.
- Shareholder meeting scheduled for mid-January 2025 for capital return approval.
Distribution Details
Leo Lithium Limited has confirmed its plan to distribute proceeds from the sale of its 40% stake in Mali Lithium BV to GFL International Co., Ltd. The total distribution will amount to A$0.172 per share, comprising a capital return of A$0.014 and an unfranked dividend of A$0.158 per share.
The company has already received the US$116.3 million net Tranche 1 payment, US$10.5 million deposit, and A$11.5 million contribution from Firefinch Limited. These proceeds will be distributed to shareholders, pending approval of the capital return.
Shareholder Approval and Meeting
A shareholder meeting will be held in mid-January 2025 to seek approval for the capital return, with notices dispatched by mid-December 2024. If the resolution is not approved, the company intends to increase the special dividend accordingly.
Tax Implications and Capital Management
Leo Lithium is in discussions with the Australian Taxation Office to confirm the tax implications for shareholders. The company has also outlined plans for the Tranche 2 consideration, which may be distributed in July 2025 if no suitable investment opportunities are identified.
The planned distribution is likely to be well-received by shareholders, providing a return on their investment following the sale. However, the company's ongoing suspension from trading on the ASX could temper investor enthusiasm. The resolution of ASX compliance issues will be crucial for future investor confidence.
Investor Reaction:
Analysts may view the distribution positively as it provides immediate value to shareholders. However, concerns about the company's ASX suspension and future investment opportunities could lead to cautious optimism.
Conclusion:
Investors should keep an eye on the upcoming shareholder meeting and ASX announcements for further developments. The distribution offers a tangible return, but long-term prospects depend on resolving compliance issues and strategic investment planning.