Ann: Exploration Update - Lithium Brine Projects, page-99

Gday Lylliaz,

Jhmos has done a Market Cap comparison to give future speculation on SP movement for CAD against AGY's historical movement. What he/she has evaluated is the overall shares available for purchase / selling between the two different companies. CAD has 5.7 Billion (That's Billion) shares available as opposed to AGY's 752 Million Shares. To give a better more radical example would be like comparing a Bergatti Veyron (Super Car) value of 1.1 Billion dollars each, to a Holden Commodore $60K value for standard saloon. Although there are many different characteristics between these two cars, the underlying comparison is the Quantity on the market. (ie Bergatti only makes a limited amount)
This is were the debate for consolidation has been thrown around on many chats with CAD as there is only so far the SP can actually go before the value of each share is so overvalued that the fundamentals behind it do not match the share price. An example of this is;
CAD SP = 3c would mean a MC of 171 Million.
CAD SP = 10c would mean MC of 570 Million. (That's over half a Billion)
AGY current SP = 8.9c with a MC of 67 Million <<<---- See the difference?

This price, 10c is concerning for investors as the company still has NO revenue stream. It's just like an expensive painting ready for someone to buy but attractive none-the less for Joint ventures.

In conclusion, a holding being sold at 10c or thereabouts, although not realistic could still happen depending on the intelligence of future investors, hype and the predictable emotion that comes with making money quickly. A 10c CAD holding now, could still be proved to be profitable in the many years to come as we transition from old fuels to new ones but this would be for LT traders only.

Hope this helps

Micko

P.S Don't hold your breath for release of Drilling commencement and don't lay blame at the managers of CAD. It is well documented that permitting and regulation in Nevada with obvious Government involvement is one of the slowest most frustrating things to endure for mining companies.