LKE towards TOP-5, page-12776

The Lithium Spot Price continues to rise and so too do the reported contract prices achieved by producers.....
As reported by Benchmark Mineral Intelligence, "Chilean lithium miner SQM said its average sales price for lithium was $54,000 a tonne during the second quarter."

Keep in mind that LKE's PFS numbers were revised from $11,000/T to $15,500/T and that change increased the NPV of the Kachi project from $800M to $1.6B - and this was for the 25kTpa case. The $4,500 increase in the selling price increased the NPV by $800M at a production rate of 25kTpa!

My previous back of the envelope calculations using a contracted Lithium selling price of between $30-35,000/T gave me a rough NPV of over $10B for the 50,000Tpa production case. The recent contract prices for the likes of AKE (>$40,000/T), ALB (>$50,000/T) and now SQM ($54,000/T) makes my $30-35,000/T price look very conservative. If a $50,000/T Lithium price was used, the NPV for Kachi project alone balloons out to $15B+!

I cannot wait for the revised numbers in the Kachi DFS to be confirmed by year's end.