Ann: Continued Strong Metallurgical Results at the Bald Hil Mine, page-29

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17,937 Posts.

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15/02/17

11:15

Post #: 22626278
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Originally posted by springinhetveld ↑

If I do a quick and dirty back of the envelope type of computation based on a 1mtpa production of 6% concentrate I would guestimate the NPV to be about 100m$ for the 50% TAW will own. This 100m$ would give an SP of 0.267$ (based on 375m shares, not 100% sure about that number).

So yes, 20c is definitely possible!

What makes TAW really interesting is two aspects:
Firstly if they indeed get into production this year, or also early next year, they will profit from elevated Lithium prices. This may increase the NPV by as much as 50%.
Secondly, their large Cowan Lithium project. If they get the processing plant at Bald Hill going any Lithium they find in the Cowan Lithium project can be processed there as well.

So TAW does look very compelling. But one should not forget that they currently basically own nothing! They are earning in on Bald Hill and have an option on Cowan. So some risk there which for me is hard to put a number to. This is why I, so far, have not bought into TAW. It hard to put a figure to the risk factor....., but for sure the upside potential is great and very compelling. I have set the range my buy-in target at 10c or lower, but may increase it a bit to 11c....

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Hi Spring, does that NPV calc include the $13 - $20m they still need to spend to earn in?

Thanks

TAW Price at posting: 13.5¢ Sentiment: None Disclosure: Held
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0 Great analysis

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