ASX300 Entry, page-8

The current market cap of Latin Resources Limited (LRS) is $824.797 million. Now, let's evaluate the company using the Euroz Hartleys formula:

• As an explorer: The company has a Mineral Resource Estimate (MRE) of 45.2 Mt, but for the purpose of this exercise, let's use 100 Mt. The value per 10 Mt of potential spodumene resource is $80-$100 million. So, for 100 Mt, the value would be $800-$1000 million.

• As a developer: Every 10 Mt of resource that has a clear pathway to production creates $150-$300 million of speculative development value. So, for 100 Mt, the value would be $1500-$3000 million.

• As a producer: Once in production, every 10 Mt of mining inventory is valued at about $1.2 billion at spot prices. So, for 100 Mt, the value would be $12 billion.

Given the current market cap of $824.797 million, it appears that LRS may be undervalued if we take into account the potential value of its lithium resources as a developer or producer.

Could LRS be admitted to the ASX300 by September this year? It's quite likely. However, to maintain growth and stability in our share price, our management team has to continue delivering on milestones and resources. Given that they're looking at adding more drills to accelerate exploration, and their past record of underpromising and overdelivering, I don't foresee any issues in this regard. I will definitely be adding some stocks to my super once this is available.