$ 1.0 Party, page-12

Your $7-$8 once in full production may seems very high and absurd, but if you do the maths, it's quite reasonable and possible.

Based on Apr-20 DFS and assume that NPAT will double due to the increase SC6 and LCE price, AVZ will have an NPAT of approx AU$517m pa, or about 15.45 cents EPS (inclusive of the additional 150m shares from the recent CR).

Looking at the P/E ratio of some lithium, battery producers:
PLS: 52
SQM: 48
ALB: 139
Gangfeng:69
CATL: 149

below is what AVZ share will be at different P/E
AVZ's P/E:
20 => $3
30 => $4.63

40 => $6.18
50 => $7.72
60 => $9.27

Market is forward looking, so 50 to 60 PE for AVZ is not ridiculous and out of the question, especially considering the JV with CATL whose current PE is x149, the vision to realise vertical integration, and the 10mT expansion.