CXO 13.6% 10.0¢ core lithium ltd

Ann: Key NT Government approvals for Finniss Lithium Project, page-184

  1. 2,407 Posts.
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    Great analysis Tacair.

    I wish I'd topped up earlier too, but did snag some more today.

    With the upgraded resource and DFS likely to yield 2.5-3 x the current figures, this should be set to fly once we get finance secured. Earning US$100m+ p.a. with less than HALF that in CAPEX required, it should be easy enough to get that sorted.

    April 2019 DFS summary:
    https://hotcopper.com.au/data/attachments/2088/2088689-75c91f2d230eb1e4259a625a2ac8f7e9.jpg

    Back in my business school days, depending on the niche / sector, you could use a rough rule of thumb valuing a business at 3 x annual net profit as a minimum.

    https://entrepreneurhandbook.co.uk/considerations-when-valuing-a-business/

    US$110m = AUS$175m. 80% IRR = $140m.

    That puts us around the $420m mark. Seems about right depending on how hot the sector gets and how much of a resource expansion we're going to see over the coming 5 years. Don't forget we've hardly scratched the surface of all our 100's of tenements.

    Current MC = $30m. $420 / $30m = 14 x current SP = target of 56c.

    Happy Easter everyone.

    Stay safe.



    Last edited by mrplough: 09/04/20
 
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