STRONG BUY, page-651

Just read that Manganese flake prices in Europe are rising and trading at USD3000/t.
For reference, EMN used in its PEA prices for HIGH PURITY product of $3000/t for 2021.
High purity metal products historically traded at 20-30% premium to flake p, while sulphites at 60-70% premium.
So, applying today’s manganese prices, you could add another 30%+ to the published PEA NPV number.
I said above you get to USD700m NPV if you apply a lower 8% cost of capital, and assuming the PEA’s high purity manganese price forecasts of the time. So, adjusting that number up by 30% to factor in today’s prices, we get to USD910m NPV 8%.

In other words, the stock is actually trading at 16% of adjusted NPV => VERY CHEAP, and actually CLOSE TO HALF EMH’s valuation, when we mark to market spot prices.
BUY!