Ann: Goulamina - Progressing a World Class Lithium Project, page-196

First 196 Last

Share
Profile

Follow
newbieguy

1,825 Posts.

294

24/10/21

13:52

Post #: 57028868
Share

Originally posted by ozblue ↑

@newbieguy ..."We will be producing more spod (450tonnes+ @6% as PLS (340tonnes)"

That is just misleading and wrong. We as in LLL will only be producing 180k tonnes of Sc6 as we will only own 40% of the output of 450,000t. All comparisons should take this lower tonnage owned by LLL into consideration yet it mostly gets ignored by everyone.

In my own models for valuation I take into account of this, meaning I have a lower valuation for LLL than most, but it is still much higher than what we presently have as a Mcap.

Given Pilbara priced for 1m tonnes (expanded future mine size) of Sc6 at present, then allowing for us to produce say 260k t (in future expanded mine size) leaves us at 1/4 the Mcap of PLS before we take into consideration not having any current output and the African discount.

PLS current Mcap $6.2B for 1m t means for LLL 260k about 25% of that valuation or $1.5B, then take no current production another 25-30% off (maybe more), all of which gets made up when in production, down to ~$1B, then allow for African discount (it's real whether we like it or not) say 30-40%, takes the current valuation of LLL down to $650-700m.

Hence FFX is still way undervalued at $600m for both Gold and Lithium, but at present without any production for LLL and only minor production of gold, we are not overly discounted, but lots of work will raise the Mcap as we start to earn good income, plus get closer to income from lithium.
All IMHO of course.

BTW apologies for picking on your analysis as your not the only one that keeps comparing apples with oranges in Goulamina future 450k to current 320k for PLS. Currently we have zero and the plan is not for LLL to have 450k but only 40% of 450k.

I prefer apples to apples comparisons, so future LLL to future PLS, and we'll only own 40% of output.

Expand

Fair point .. even at 40% of 450ktonnes .. let’s say 180k plus 75% increase getting it to 300ktonnes (with future modelling ) I think 650mil -700mil is very conservative for LLL..plus I think 40% discount for Africa is bit too much .. with offtakes signed for all of the spod.. we are in a better position with less uncertainty.. just my opinion.

Then add gold ontop .. way undervalued..

Last edited by newbieguy: 24/10/21

FFX Price at posting: 65.0¢ Sentiment: Buy Disclosure: Held
8 Upvote

0 Great analysis

Reply

Top Stories

RCE

Recce eyes Indonesia for novel anti-infective as Indo-Aus ties grow stronger

Week 40 Wrap: China's nonsensical stimmy hype wanes (shocking!); HotCopper's picks; oil & inflation

ACW

Actinogen Medical ramps up Alzheimer’s treatment trials, targeting fast-track global approvals

COD

Coda Minerals (ASX:COD) enters rights issue to further exploration in South Australia

BCI

BCI reaches close of funding facility for salt-first part of Mardie project

NTI

Neurotech knocked back by FDA as agency declares target condition not rare enough for special status

BUX

Buxton projects new graphite province discovery at WA Narryer play

SLS

Solstice Minerals to ramp up drilling campaign at Yarri Gold Project

CKA

Cokal upgrades infrastructure for BBM ramp-up in Indonesia

WCN

White Cliff jumps 24% on 'bonanza grade' copper rock chips at Rae project, Canada

There are more pages in this discussion • 12 more messages in this thread...

First 196 Last

Add FFX (ASX) to my watchlist

Ann: Goulamina - Progressing a World Class Lithium Project, page-196

Top Stories

Recce eyes Indonesia for novel anti-infective as Indo-Aus ties grow stronger

Week 40 Wrap: China's nonsensical stimmy hype wanes (shocking!); HotCopper's picks; oil & inflation

Actinogen Medical ramps up Alzheimer’s treatment trials, targeting fast-track global approvals

Coda Minerals (ASX:COD) enters rights issue to further exploration in South Australia

BCI reaches close of funding facility for salt-first part of Mardie project

Neurotech knocked back by FDA as agency declares target condition not rare enough for special status

Buxton projects new graphite province discovery at WA Narryer play

Solstice Minerals to ramp up drilling campaign at Yarri Gold Project

Cokal upgrades infrastructure for BBM ramp-up in Indonesia

White Cliff jumps 24% on 'bonanza grade' copper rock chips at Rae project, Canada

Featured News