General Discussion Banter GLN, page-13847

The sensitivity analysis in LKE’s ‘DFS’ (cough) shows everything wrong with it:



So a 15% difference to the assumed lithium price (i.e. US$28,100/t LCE, still way higher than spot and most LT estimates) drops the IRR from 20.9% down to 6.5%… you can almost get that in a bank account.

If they used a realistic price assumption, the IRR would be negative! No wonder they commissioned a “bespoke study” to come up with US$33,000/t… they basically chose a number that tipped them over a 20% IRR, which is still disappointing for a project risking so much capital in such a widespread commodity.

Whilst the price action on GLN has been disappointing, seeing stuff like this does make one appreciate how they’ve gone around their studies etc.