Ann: James Bay Major Resource Upgrade, page-29

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Jehosephat

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04/12/17

09:55

Post #: 29338835
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Originally posted by savvyinvestor ↑

yep the market is going to love the doubling of the estimate resource from 20mill to 40mill giving a 500,000 tonne lithium equivalent resource, based on a massive drilling program of around 50,000m across over 200 holes. there is clearly going to be further resource upgrades in future, but this gives a solid foundation the updated dfs that will be used to secure offtake agreements and mine financing.

as stated above, being at the lowest end of the cost curve provides huge value in terms of safety as an investment thesis, given the lithium supply/demand outlook is unknown over the next 10yrs. financiers and investors will look at jb as
1)a world class resource in terms of grade and size
2) easily accessible, with good transport infrastructure in reach,
3) in a politically safe country,
4) run by a company with a brilliant management team and a proven hard rock pedigree and track record in getting from scratch to nameplate in a short time despite erratic lithium market dynamics
5) with the financial security of the company which has strong free cash flow from its existing mt caitlan operation

james bay has until now not been factoring in a material way into the gxy valuations of most analysts and retail holders, but i suspect that will soon change, especially once the jorc can be followed by a dfs and offtake agreements then financing. once jb emerges as a 'sure thing' within the next 12mo, it will deserve to add another 400-500mill to the market cap.

then think what will happen to the sp in the next few months, once the next round of announcements roll out with sdv offtake agreements and financing arrangements to bring sdv one step closer to production as a low cost brine operation.

stars are continuing to align in the galaxy and the analyst will have to acknowledge the value of jb and rerate sooner or later.

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You're mostly right, except for the likely increase to the market cap. Given that PLS market cap currently exceeds that of GXY, and JB, with its size and richness AND A DOWNSTREAM PROCESSOR, has got to have a greater market cap than PLS, I suspect that it will see a $1.5-2B increase in the present market cap over the next 12 months, DYOR

GXY Price at posting: $3.80 Sentiment: Buy Disclosure: Held
32 Upvote

0 Great analysis

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