That is correct, Gerry Harvey a long-time member of the Financial Review Rich List, founder of
Harvey Normanis a top 20 shareholder of Lithium Power International.
Similar to billionaires Gina Rinehart and Andrew Forrest, Gerry will have conviction that LPI is one of the best lithium players. These heavy hitters position themselves before a significant move, and this is ultimately how they amass their wealth over time. Sometimes us peasants just need to observe what successful people are doing and do the following:
Ctrl + C and
Ctrl + V. That is right, copy and paste, follow the cheese.
Why would billionaire Gerry invest in LPI? It is rather simple, as above our billionaire friends invest in things that are below market value. As it stands, LPI has a DFS defined NPV of AU$5.9 billion.
Market Cap of AU$ 221 million trading at only 9% of Net Project NPV!! This includes 51% ownership.
Gerry understands EV’s are the future and the demand for lithium will be massive. Gerry would also know that companies with low OPEX equates to competitive advantages. LPI will rank as one of the lowest cost lithium carbonate producers globally, better than Albemalle's & SQM Chile operation operating costs estimated at US$3,772 per tonne of LCE.
Easy to see why Gerry would invest in LPI
The recent demerger announcement of the Western Australia assets would also give
Gerry a smile on his face, as with all other investors. Due to the free shares LPI holders will get in this DemergCo. Let's be honest it is setting up for something bigger - LPI would most likely be getting ready for a clean joint venture OR take over with one or more of the following companies: Codelco, BYD, SQM, Albemarle or Mitsui. When a junior demergers one of it's coveted assets it normally means something big is happening behind the scenes... I suggest that any purchaser of LPI (which I feel is the strategic reason behind this) will want the Chilean mine, not the WA exploratory assets.
Remember LPI is working with Mitsui on DLE technology and that will be the long-term future of lithium brine extraction in Chile and elsewhere. Any takeover over will need to recoup the AUD$95 million spent to date at Maricunga and allow for resource expansion to well over 5 million tonnes on LPI's tenements at Maricunga. Fairly easy to calculate any
takeover price of ~$2.00 a share for LPI based on Neo lithium that was taken over last year for A$1.3 billion. Again,
Gerry smiles!* Adjusted comparative take over price -This includes LPI’s 51% ownership.
