Here are some of my assumptions. You'll see they are very conservative
Stage 1
Lithium Carbonate price t tonne (USD) - 9000
1
production (tonnes) - 12470
2
exchange rate - 71
3
cost of production (USD) - 3974
4
Fair value Stage 1 only - $2.90 AUD
Stage 2 (similar assumptions to above, though a better cost of production and closer to nameplate. Discount rate of 12% and assuming it will be done in 3 years. Adds $2.75 to current share price.
Hydroxide plant. ads 4c.
Advantage Lithium - Adds 10c.
Total = $5.79. So I think this is what ORE is worth today. So 67% more than today. Bargain at these prices.
In 3 years time I expect fair value, on PE of 12, to be $7.55. Double your money easy....
ORE Price at posting:
$3.46 Sentiment: Buy Disclosure: Held
