15Mt at 1.2% LiO2 Resource = ~ 7.8c SP

A poster recently asked the question, “what would the PIO share price be if they had a resource of 15Mt @ 1.2% LiO2 ?”. I'll give it a go.

This would indeed be a company maker, a rough valuation can be placed on such a resource by utilizing other companies current in ground value per resource LiO2 tonne, eg: PLS and AJM ~$448t LiO2. .

PIO Mcap $26M @ 2.5c fps (1035M fps, ~$6M cash) – current.

PIO proj Inf/ind resource 15Mt (upper limit) @ 1.2% LiO2 for ~180,000t contained LiO2
PIO LI resource EV value based on AJM-PLS in ground resource value of ~$448t LiO2 = ~$81M
PIO proj share price = ~7.8c

With a current SP of 2.5c, market cap of ~$26M and ~$6M cash, a minimum resource of 5Mt is required to have a Lithium resource EV that matches the current market capitalisation of the company without factoring in any other project/commodity value, if any whist they are in the exploration phase.

Perhaps the market is a lot smarter than most realise and has already factored in a possible 5Mt resource as a minimum, it will take a lot of drilling to get to 15mt and the drilling will be the truth detector in the long run.

IMO, the share price will continue to drift over the next two months due to drill in-activity. Good luck to all other shareholders.


Notes:

AJM 3/08/2016
Mcap $190M @ 15.5c fps (1222M fps, $22M cash)
Ind/Inf resource 35.7Mt @ 1.07% LiO2 (Prob reserve 18.4Mt @ 1.07% LiO2)
AJM value per resource LiO2 tonne (~380,000t contained LiO2) = ~$500t

PLS 3/08/206
Mcap $620M @ 54c fps (1148M fps, ~$100M cash)
Ind/Inf resource 128.6Mt @ 1.22% LiO2 (Prob reserve 29.5Mt @ 1.31% LiO2)
PLS value per resource LiO2 tonne (~1.56Mt contained LiO2) = ~$397t

3/08/2016
Ave PLS-AJM project ind/Inf resource LiO2 tonne = ~ $448t