Yes, thanks for the pickup @merwej - corrected below.
This obviously doesn't change the EV/EBITDA multiple, but it does improve the payback periods on the debt.
As for the other points, each investor can choose their preferred method. In mining I tend to prefer EV/EBITDA rather than P/E, the latter which I find very subjective (bearing in mind when lithium was hot people were using P/E's of 15-20x when placing speculative valuations on things). Mining is so cyclical it just doesn't deserve such high P/E's, in my own opinion. Most of these lithium companies are not diversified either, they're usually single-asset operations/developers, which further should suppress the multiple chosen.
Technically speaking one should be more forward looking and include an element of phase 2 in the mix if doing a proper valuation. That's not what this is - it's just looking at phase 1 in isolation. That's because the company needs to clear the first US$90M debt hurdle, before they even think about financing phase 2 at US$311M incremental capital. Additionally, in my view Greenbushes is worth very little, and Candelas is time/capex risk-rated right down as well. Just my take, I obviously have tended on the conservative side with this one (and for IGO, the other name I've done this sort of work on) so I appreciate many here will want to take a more bullish view. I think the box on the right affords that - if LCE does get back to the US$20K mark longer term then there's definitely upside for GLN at current pricing.
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Last
11.5¢ |
Change
-0.010(8.00%) |
Mkt cap ! $68.54M |
Open | High | Low | Value | Volume |
12.0¢ | 12.0¢ | 11.0¢ | $197.6K | 1.702M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
3 | 92994 | 11.5¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
12.0¢ | 269000 | 4 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
3 | 92994 | 0.115 |
26 | 1560926 | 0.110 |
26 | 2006287 | 0.105 |
60 | 3780642 | 0.100 |
4 | 131111 | 0.099 |
Price($) | Vol. | No. |
---|---|---|
0.120 | 269000 | 4 |
0.125 | 446428 | 9 |
0.130 | 500900 | 13 |
0.135 | 1008914 | 4 |
0.140 | 253258 | 5 |
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