This has been forming a nice base on the chart. Come back to historical supports and positive divergence. Definitely blown some froth out.
This is trading at an EV of c. US$225m when you allow for capex spend to be finalised.
As you say timeline adhersion important but this should be less than 6 months away from production. This is usually a great time to buy development plays as they move towards cashflow.
Once they hit nameplate they should be making US$30-40/lb profit with offtakes at $80 term pricing. That is US$72-96m per annum. So trading about 2.5x FCF on a 10 year mine life.
Obvious further catalysts are increasing LOM, term prices increasing. These things also feed into helping their second project.
I think a move back to 22-25 res range here should come soon.
LOT Price at posting:
18.3¢ Sentiment: Buy Disclosure: Held
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