If you're going to quote me, at least do it in the proper context.
1. At what point did I mention grade? Product mix is a reference to production (even the way you define it). So the point is does it matter if its a Li-Boron co-product or a Li-Gold co-product etc. Not to me. It is the profitability that counts (risk adjusted of course).
2. Where did I say I only want low risk? Maybe easier to use an illustration. The investable universe consists of just 2 stocks Stock A ... offers a 10% return at a risk of 20% Stock B ... offers a 20% return at a risk of 20% You're not seriously going to suggest you would buy Stock A are you? A rational investor chooses B - the highest return for the least risk Now if the choice expands to 4 stocks Stock C ... offers a 15% return at a risk of 10% Stock D ... offers a 25% return at a risk of 10% A rational investor would choose Stock D (highest return at least risk)
The world of institutional portfolio management was built on Markowitz "Modern Portfolio Theory"
and btw are you contradicting yourself with "when you are discussing exploration companies attempting to emerge into production companies." - isn't INR already in production per your earlier commentary??
3. Aren't you happy I put the link there so you can look more closely? Remind me ... did Ord Minnett profit from INR's capital raising in Nov'19 - rhetorical as it ought to be well known they did "Goldman Sachs and Ord Minnett acted as joint lead managers, book-runners and underwriters to the placement.". Is it coincidence they have the price target and a glowing report?
I put that info there so this forum can look at the information itself. The reader must decide for themselves what it means. The only figures I truly trust are the ones I can model for myself. You should be looking at the outputs in the context of the input assumptions e.g. look at the difference in assumed price for Li used for example. Those just happen to be from company PFS mostly. If you think the analyst has misrepresented or falsified figures take it up with him. I thought Dylan Kelly of OM did a very good job of putting out alternate scenarios and valuations ---- is he right? Who knows. And I'm not even going to question whether he has an agenda or not. It's just data and interpretations. Same as the Opex figure (after Boron credits and before added costs of LiOH processing) that you like to tout.
Seems to me this whole disclosure thing is a no-win on HotCopper. If you're not a "holder" you opinion is discounted (or worse) tagged as having an agenda or a downramper (and why wouldn't the reverse hold true?). If you're an analyst or writer.blogger and you disclosure is "no position" then accusations of no skin in the game fly but if you hold then you're a promoter??? Lose-Lose IMO.
Knowledge is power and there is a hierarchy to it.
INR Price at posting:
18.0¢ Sentiment: None Disclosure: Not Held
(20min delay)