I value it at $0.50 to $0.60 based on current demand along with what was said during the conference call with Simon Hay and Alan Rule. This valuation factors in another impairment of $50 - $80 million (at Mt Cattlin) appearing to reduce their assets (cash shouldn't be affected). They are also looking to cut costs by reducing overall mining by around 50%. This should help regulate inventory and reduce overall cost of production to about half. Thus making any revenue this year appear better on the financial statement but not necessarily a good thing - wait until more contracts/revenue. Majority of efforts/capex are also being placed into Sal de Vida at the moment, due to Mt Cattlin already being operational, which should see the company slump some more for the time being. Overall, the whole sector is in a bit of a stalemate while Lithium is at a lower price and contracts are hard to arrange. I suspect most companies will operate at around break-even with low Lithium prices, to drown out the resource market and wait until Lithium spot price and supplier demand increases. Overall, they are a strong company and I would either close positions and buy in cheaper or hold until a lower price.
