Ann: 2.5x Increase in HMW Resource - Now 5.8Mt LCE @ 866 mg/l Li, page-197

Here's something interesting... while we wait for this gap to close (it may not but I'll buy more if it does).

I have updated my Lithium resource table to include Galan's resource update. This table shows that GLN (highlighted in green) has an EV to Resource valuation of $67.04 per ton of LCE - that is, each ton of LCE we have in mineral resources contributes $67.04 towards the market cap. As you can see Galan provides the best value (LCE for your dollar) other than a couple of companies with lower grade resources highlighted in yellow (i.e. EMH, VUL and JRL) - also noting that JRL has yet to be proven to be economic by way of a study where they actually release financials (eerily similar to AZL on that front - and both clays?!?).

The last column calculates what the Galan share price would be if it was valued the same, on an EV to LCE basis, as these other companies. For example, CXO currently has an EV to LCE value of $4,161.69 per ton. If Galan was valued on the same basis the current share price would be $83.08 (highlighted in blue). Keep in mind that some of these companies are closer to production and as you get closer to production greater value will be given to the mineral resources that you have. However, regardless of this dynamic there are some significant distortions on this list.

Interesting that if we were valued the same as LPI that we would be worth $2.62 (I just mention this because of the discussion that was had earlier today and I often see comments of how cheap LPI is - I agree that it's good value in the land of Lithium, just not as good as Galan). Note that these numbers assume that LPIs Maricunga is 100% owned and that the new shares have already been issued (which is why the EV is sitting at $356m).

Another interesting one is that we now have more resource than Liontown which is worth $4.3b. If we were valued like LTR, based solely on our resource, we would be worth around $15. They are closer to production than us, although if we managed to get into production in H2 2024 we will only be 6 months behind them. On the other hand, their planned production rate is a fair bit higher - although we might claw back some ground on that front. As for jurisdiction, I don't think that will be such a differentiator once we get closer to production, AGY is testament to that.

If we were valued like ASN we'd be $9.34. But the one that stands out most for me is AGY at $68.34 given that it is the same jurisdiction with the main difference that they will be producing within a month or 2 - albeit it at 2,000tpa (moving to 10 or 12ktpa later).


Note: I need to add portions of A11 and SYA into PLL - I'll do this another time. Also, some lines like SYA show as 100% when they are not 100% owned. This is because they have multiple assets with separate ownership which is calculated elsewhere - so only 75% of NAL is shown in the SYA line and therefore the resource size has already been reduced by the ownership amount - which is why they show as 100% of the reduced amount.

So yes, even more undervalued as of Monday's announcement. At some point it will be too much to ignore. Just food for thought.

ALL IMO DYOR