2ktpa selling at 52k usd= 104m Sales revenue
vs 667 market cap
6x on Price to Sales
So we are undervalue just on the 2kpta plant
What about this?
"In addition, the Company is looking
forward to finalising upcoming significant milestones that will confirm Argosy’s ambitions and
near-term growth phase to fully develop the Rincon Lithium Project."
Recalling what they said in the quarterly
"Strategic lithium carbonate product off-take arrangements and associated capital
funding for the Rincon 10,000tpa expansion operation progressing toward being
finalised."
"Environmental Impact Assessment approval process progressing towards conclusion
– to develop the 10,000tpa Li2CO3 expansion operation, supplementing the 2,000tpa
operation."
So I expect in a few months the market will be forced to recognise the 10kpta expansion
Putting that down into valuation
2ktp - Lets say AISC 10k giving margin of 40k = 80k US EBIT x p/e of 10 = 800m US or 1.2b AUD = 2x from here
10ktpa - Lets keep margin at 40k = 400m US x EBIT x p/e of 10 = 4b discounted to 50% value attribution given construction is outstanding = 2b
Net is 3.2b valuation of 5x from here.
The risk reward on this thing is screaming buy imo dyor
(20min delay)