Is there a buying opportunity?, page-18

I sold my position around $4 levels after a 2.5x. Above $4 the valuation stopped making sense unless one assumed a much higher lithium price or assumed a very quick capacity expansion. Also at that valuation there was very little margin of safety left for production mishaps which are all too common. Plus their cash costs per ton continued to rise versus what they had initially expected (nearly 2x higher). Mgmt is over promotional which is also a turn off. At current price it is probably oversold but is not very cheap. Just run the CF numbers yourself assuming $4000 cash cost/t, 80-90% utilization and $10000/t lithium price and adjust it down for the ORE stake in Olaroz. Assume a 10x multiple on those cash flows and if you still see upside then its attractive.