More peer EV/Resource spodumene comparisons below after the recent peer re rates and again, just another value to the overall transparent light table to take into consideration, that’s all, nothing more nothing less, IMO.
AJM 6/10/2017
Mcap $451M @ 28c fps (1614M fps, ~$13M cash, $140M debt facility)
Pilgangoora Ind/Inf resource 39.2Mt @ 1.02% Li2O (Prob reserve 30.1Mt @ 1.04% Li2O)
AJM value per resource Li2O tonne (~400,000t contained Li2O) = ~$1,127t
PLS 6/10/2017
Mcap $1,119M @ 76.5c fps (1467M fps, ~$87M cash, $130M debt facility)
Pilgangoora Ind/Inf resource 156.3Mt @ 1.25% Li2O (Prob reserve 69.8Mt @ 1.26% Li2O)
PLS value per resource Li2O tonne (~1.95Mt contained Li2O) = ~$573t
KDR 6/10/2017
Mcap $345M @ 99c fps (349M fps, $3M cash, $106M funds for mine development + $40M cash
upon SQM deal being executed/conditions ticked, no debt)
Mt Holland Li (KDR 50%) Ind/Inf resource 128Mt @ 1.44% Li2O + Au (KDR 100%) Ind/Inf resource >1M ozs
KDR value per resource Li2O tonne (50% of ~1.84Mt contained Li2O) = ~$375t
BGS 6/10/2017
Mcap $57M @ 29.2c fps (194M fps, $6M cash)
Goulamina - Mali Ind/Inf resource 32.9Mt @ 1.37% Li2O
BGS EV value per resource Li2O tonne (~451,000t contained Li2O) = ~$126t
AVZ 6/10/2017
Mcap $232M @ 13.5c fps (1,723M fps, $13M cash)
Manono - DRC (KDR 60%) B of Env lower resource 656Mt @ 1.5% Li2O
AVZ EV value per resource Li2O tonne (60% of ~9.8Mt contained Li2O) = ~$39t current
Currently and on the above basis AVZ is severely undervalued
On a peer on peer Australian average Li2O EV/resource tonne value @ $691t Li2O = $4,076M mcap or $2.36 per share potential without a country origin discount within the March 2018 qtr or when a JORC compliant resource is released to the market. If only, but even at a combined 90% origin of country discount/current non JORC resource status the SP would be 23.5c.
Either some of the Australian peers are overvalued on a simplistic EV/resource tonne value or AVZ and its African peer are screaming buys.
IMO, a massive AVZ upward share price re rating is not far away. Perhaps after Monday 16th October.
Good luck to all the wannabee spodumene miners in the sector, exciting times ahead for all. Bye …
…………………………………………………………………………………………………………………
“Given the continued support from drill intercepts to date, we have also upgraded our exploration target for the entire project, to be between 1Bt to 1.2Bt of 1.25% to 1.5% Li2O, including between 300 and 400MT of 1.25% to 1.5% Li2O for the Roche Dure pegmatite alone”. … Mr. Klaus Eckhof, AVZ Executive Chairman, 12th September 2017.
Expand
