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....
