Ann: Dome North lithium drill programme to commence, page-166

indeed, i am disappointed i wasn't watching close enough to pick-up that second parcel at 22c. Nevertheless, happy to have a first parcel around 18c.

I wonder how much noise lithium crossing 300 yuan will make?

At some point in this cycle there will be alot of FOMO. This will either be with sky high lithium prices (we are approaching double the 2017 peak now), a flood of more EV's and new headlines beyond Tesla - for example Polestar by VW , Mercedes EQ etc.

companies like ESS with 11mt @ 1.2% are simply under valued in the context of a growing industry

To give ESS a back of the envelope valuation as an example

Lets say ESS = Mt Cattalin, after all they are located in the same area with identical current resources size.

We know MT Cattalin was if memory services

AISC - $450 dmt USD
Production: 200kt a year
Life of mine i cannot recall but around 6 years i think.

Using today's PLS BMX Auction Spod price of $2,200 that gives ESS at production:

Revenue: 200kt x $2,200 = 440m
COGS: 200kt x $450 = 90m
EBIT: 350m
NPV @ 6 years , 150m construction cost & 10% Discount Rate = $1.2b

Lets say ESS given its exploration statues prices in 25% of NPV = 312m Market cap or 6x from here

Total risk - 50m company with 9m cash + gold assets - possible 25% downside?

Total return - 6x going up to 24x over time.


Other positives - Warren Hallam who is an established professional previously in charge of Metal X . Not sure if bought the failed Copper assets but i do recall having good profits under his leadership


Drill results Mid Jan - Risk- Reward is great - Good luck and DYOR (lots of assumptions in this post)