Not Gunna Be Enough Lithium, page-362

With the PFS to be updated shortly, and possibly this week, investors might be considering what the uplifted NPV might be given current LiOH and tin prices. My own starting point is the most recent WHI report available on the europeanmet website, and in particular the sensitivity graph.

The first thing to note is that a 10% increase in the sp of LiOH leads to a circa 20% increase in NPV. So all other things being equal a doubling of the sp of hydroxide from $12,500 to $25,000 (currently over $30,000) would result in a trebling of the NPV.

Secondly my rusty economics tell me that the NPV as calculated takes into account all fixed costs. Any additional production will only have to take into account the expansion fixed costs (unknown) and the variable costs. So again all things being equal a doubling of production, which we understand is being considered, would more than double the NPV.

So in back of an envelope terms my understanding (and please correct me if you think this is wrong) is that two of the likely factors being considered in the updated PFS could see at least a sixfold increase in the NPV.

I am all in here (and have been for some time) and am left scratching my head at the lacklustre share price. Am I missing something? I guess time will tell, not long to wait now for the revised PFS and (hopefully) accompanying research notes by way of commentary