The PEA assumes 100% ownership for simplicity. Of course AGY will own 90% of Puna when funding for the 10ktpa plant has been provided as per JV agreement. So $141M for 12.5% stake in Puna? Apparently the JV is worth US$1128M haha.
Their base case... case v. Used a discount rate of 10% and came to a pre tax NPV10 of US$399M for the 10ktpa @ US$13,000. case vi estimates the pre tax NPV10 of US$580M ( eye balling the graph there ) If I extrapolate those numbers for a US$17,600 lithium price then the NPV10 is US$730 ( I'm sure it's more complicated than that )
Still a far cry from $1.5b.
Some of the operating costs are 3% revenue royalties and 4.5% installed equipment "sustaining capital".
Items not taken into account in valuation:
These models ignore any potential side income from the byproducts created in the production process.
35,000 t/y of potash and 25,000 t/y of magnesium hydroxide. I could not really find prices for these and the devil is in the details but it seems like US$200+ at least. Not huge amounts but hey, it's another US$12M+ per year, it adds up.
IP.... which could potentially be very valuable when applied but hard to put a real valuation on an intangeble like that.
Expanded resource and increased life or mine at same or increased scale.
TLP
So where does your evaluation differ from what Argosy did themselves?
(20min delay)