Well … share price of $15 makes a market cap of about $58B. That...

Well … share price of $15 makes a market cap of about $58B. That sounds really high hey … but …

If in stage 1 production we assume approx 500,000tpa is sold at say $5,000USD profit (working from something near current pricing but allowing for some inflation and deducting production costs). [Don’t forget, the structural deficit in Li supply starts just as we hit first production output and first sales.] That’s annual earnings of about $2.5B (but USD). Convert to AUD at say 0.7 exchange and that’s about $3.5B (AUD).

So that gives a PE of around 16.

These figures could be out so happy to hear otherwise … but I think PE runs at about:
FMG - 4
MIN - 8
BHP - 12
Lynas - 31
All ords - approx 18

So is the $15 actually as far out of possibility as it may first appear to be? Recalling, that just for stage 1 output…