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clock Created with Sketch. 07/04/22
22:58
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Originally posted by immmelman:
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Further to the recent broker commentary suggesting that our "by product" Lithium Carbonate in full production could add US$400M (and become the biggest producer of Lithium Carbonate in the USA) to our EBITDA, I thought it time to revisit what our soon to be released revised BFS might look like. Firstly, our current BFS has an EBITDA of US$452.7M based on annual production of 450000 tons of Boric acid and 400000 tons of SOP. The price assumption for our boric acid was US$680 per ton whilst the current price is US$1100 per ton. I think an assumed price of $900p/t is very realistic and would add US$99M to the EBITDA. The current price of SOP is around US$1000 per ton compared with the last BFS assumed price of US$648 p/t so Im thinking a realistic number is US$850 p/t adding a further US$80.8M to the EBITDA. Now, if I trim the Lithium Carbonate contribution back to US$370M that gives an EBITDA of US$1002.5M or about a 120% increase. Based on these back of envelope numbers the share price would have to be well and truly into double digits.
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Yes should be a significant uplift on DFS ebitda, can’t get over a potential by product contributing circa 35 per cent of ebitda.
