Yeah 2-4B what its worth out the ground - that statement didn't include costs. Some assumptions involved here too.
I have posted some of this before and I have gone one step further here and stated profit - This doesn't include the 90mil? costs we will need to raise and build a processing plant.
Mining and concentrating the assume 1.25% ORE Assume we get to a mining RESERVE of 10dmt (~30% bigger than CXO’s mining reserve) open pit and underground @ with a concentrate with the stated 74% recovery of and produce a 5.6% Lithia concentrate
10mt @ 1.25% divide by 4.4 to concentrate to 5.6% and times by 74% recovery = 1,681,818 dmt of concentrate lithia @ 5.6%
In CXO DFS - they have their costs of production ~ $360 US/dmt I believe. For my calcs Im assuming $500 US/dmt costs Also remembering PLS sold 8000t of 5.5% for ~$2300 US on their most recent BMX Auctions
sell for $US 1000USD/dmt Leaves $500USD profit X 1,681,818 = USD$841 mil ~ $ 1.14B AUD sell for $US 1500USD/dmt Leaves $1000USD profit X 1,681,818 = USD$1.68 B ~ $ 2.24B AUD sell for $US 20000USD/dmt Leaves $1500USD profit X 1,681,818 = USD$2.52 mil ~ $ 3.38B AUD sell for $US 2500USD/dmt Leaves $2000 USD profit X 1,681,818 = USD$3.36 mil ~ $ 4.52BAUD
As per CXO we could have a nice little 1mt per year operation producing up to 168,100 tons of 5.6% concentrate for 10years! What price we get for it depends on the market of supply and demand -forecasts are for serious shortages
Just did the exercise for a bit of fun with some round figures. Let me know if you think I'm way out, happy to see others valuations
ESS Price at posting:
16.5¢ Sentiment: Buy Disclosure: Held
