Most ASX listed junior explorer companies fail at this point, some are now in survival mode. Lithium prices are low making it very difficult to raise money.
There could easily be a few that are about to fail in the lithium space this year, that we have most likely heard of
I was doing some numbers this morning, and here they are. This is purely an example of the effect of varying lithium prices, and the effect it has on NPV and IRR calculations, I am using ASN DFS numbers in this case and a series of static cashflows, which of course no one can predict but that's not the point
The point is if company XXX has to raise 500 mill to make a few dozen mill, it is not viable, the banks will keep that money in their bank
When we see prices of lithium recover, we will also see the SP's of lithium companies recover, because the NPV becomes positive
I do hope everyone plays around with their own spreadsheets, I am using NPV, IRR, PMT, IMPT functions
(20min delay)