The current spot price argument has limitations for mine.
Average price of lithium was calculated by those more knowledgeable than you and I over a 14.6 year mine life and project life span. They don’t make these figures up.
My view is than any finance taken over a 15 year project life takes into account the average and projected lithium price over that time and not just what it currently sits at. That is one reason a DFS was created ie to allow companies to secure finance for a commercially viable project.
Any major financing surely takes into account the bigger picture and the ability of a company to pay money back over a long period of time. The EUR DFS clearly indicates that it will be able to do this despite current spot prices.
As you mentioned, the price of lithium and demand will very likely increase over the coming years as well as EUR resource base. I think there is little doubt re this…
Secondly, no company is declared effective to list and trade on the NASDAQ unless there is clear evidence that they are likely to make high profit margins and create growth for large investment firms. That is a major reason for listing on there in the first place. EUR have ticked these boxes with a pending vote now only days away and a formality in many people’s eyes.
Spot prices will always have their highs and lows, but bigger picture snd demand for EVs the key for mine.
EUR now better placed than many to take advantage of it.
EUR Price at posting:
10.5¢ Sentiment: Buy Disclosure: Held
