LPI Stage 1 & 2 DFS delivers NPV of $5.9B, page-90

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MrPM22

990 Posts.

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06/02/22

22:30

Post #: 59393664
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Originally posted by FrankRockefield: ↑

Borrowed some wording across HC - but let's look at LPI's trend. As the prominent poster "@Marketscan" recently came on board, it is important to watch the trend with LPI, because it's moving in a big way.

Watching the market on a daily basis isn't a way to determine whether a company represents a good investment or not. Probably the opposite is true.
If your aim is to double your capital in a short term period, then realistically you're tending towards speculation rather than investing. That's fine - but be honest with yourself about which type of operator you are, and the risks that come with that. Companies whose market caps double in that sort of timeframe are not particularly normal, or stable. If you want any evidence of this, look at the charts of EFE, CRR and many other microcaps that go vertical for a while, like 88E, TEG, VR1, CRO, IOU, etc (this is the ASX, so examples abound)
Looking specifically at the ASX-listed lithium space, LPI has fallen off its highs. But zoom out and look at the wider sector, it's true for many, including the bigger players; in fact, -15% is the second best lithium performer:

From a recent interview from the CIO of the most terrific investment houses in Australia Paragon Funds Management Ltd gave the following interview:

John Deniz:Sure,Lithium Power International (ASX: LPI). It's a bankable feasibility complete or construction-ready lithium developer and we think it'llat least double this year, despite its re-rate. They've got arguably the best-undeveloped lithium brine asset globally. One of the best in South America anyway. And it's a conventional lithium brine asset, unlike some of the others we've talked about in the episode.

What's kept people away in the past is it's had a convoluted ownership structure and that's all about to be cleaned up in our view.And in terms of pricing metrics, they're attractive. It's only trading on a fully-funded NPV of around a quarter. And so we see strong upside and you're getting the lucrative stage for free too. So it's a buy for us and full disclosure, we're long.Snapshot of the interview:

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yes very postive indeed. Just wondering what he means by "What's kept people away in the past is it's had a convoluted ownership structure and that's all about to be cleaned up in our view."?
How is it going to be cleaned up?
LPI Price at posting: 71.0¢ Sentiment: None Disclosure: Not Held
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