Shares in lithium miner Altura Mining , jumped more than 7% yesterday after it confirmed market rumours that it is in takeover talks with its Chinese offtake partner and major shareholder Shaanxi J&R Optimum Energy.
The company has announced a binding offtake agreement with a subsidiary of Ganfeng Lithium. Macquarie observes this reduces some of the uncertainty with the prior J&R Optimum Energy agreement, which it in part replaces. Prepayment will also provide some funding relief.
First half results revealed a larger loss than Macquarie estimated. The broker considers earnings at this stage are largely irrelevant, given the sole activity is the development of the Altura project (formerly Pilgangoora).