Excellent news being released by the company and the early payment by LPI, 6 months ahead of schedule, is positive for negotiations.
Now that all shareholders will have to contribute according to their project shareholding, things will get interesting.
With respect to negotiations, offtake agreements can be discussed but to maximize the value of an equity stake the owners of Maricunga would be best placed to have the final DFS completed and showing the full value. I’m hoping for an NPV of US$1 - 1.4bn post tax with a 25% stake fetching approx US$150-175m (40%-50% discount to NPV). This would value LPI’s 37,5% stake (post equity sale) at approx US300m. A far cry from the current <$100m. Plus we keep 100% ownership and blue sky of the Greenbushes and Pilbara exploration assets. Those will keep the news flow going whilst Maricunga ramps up.
LPI Price at posting:
46.5¢ Sentiment: Buy Disclosure: Held
