Yeah but what it also proves is that GL1 is trading from the Market's perspective at a very very steep discount to its NPV ( ie the Market doesn't buy it ) as against Sayona where we are trading at 100% to our PFS one project only NPV.
So for me it's not even a proper comparison. I would be more concerned about our ' OTHER ' projects which have not even been factored into our NPV since virtually the very beginning of their acquisitions.
So as Ihave stated previously based on what I would consider my conservative expectations are in so far as JORC increase in resources and valuations at Moblan which include a HIDDEN component for other potential byproducts ....should be for all intent and purposes valued closer to around A$1.5 billion in its own right.
And that is the real problem for Sayona compared to other peer companies.
And I still like the currency recession ' Buffer ' exposure that Sayona Mining's business model offers Investors who are LESS inclined to trade the currency markets in the overall Market uncertainty and volatility.
So with the US FED obviously anticipated to go harder for longer mantra , the US currently sits quite a bit ahead of ALL others in terms of its currency yield with the Aussie sitting second and the Canadian dollars around 5th or 6th in the Top 20 or so.
So with Sayona , we can see that BOTH the Aussie and CAD have more or less declined against the greenback around 9% in the last 12 months while remaining virtually level against each other in that same time period.
And with the US dollar set to increase further right at the time that Sayona will be producing and generating revenues primarily in USD is a great relationship to be in at almost exactly the right time.
So not only do we repatriate our USD earnings in our P & L , we also pay our Canadian Dollar expenses and employees also with that same relative levels which have also declined against the greenback while staying more or less level over the course of the last 12 months with the Aussie.
So at the moment the Aussies is sitting right around the same levels as it was back in the GFC when Australia was one of the only OECD nations to avert a recession at that time and only around 12% above that very brief aberration resulting from the COVID pandemic which hit in March 2020.
So given that the ' Swings ' are actually more broader now due the ever changing rhetoric with respects to the Russian - Ukraine issues in Europe and the constant uncertainties ebbing and flowing with China / Taiwan expectations , I can see an Aussie giving up a little more and settling around the 62 cent mark right around the time we start to potential receipt our revenues from potential future off-takers.
So that's a total potential positive swing in Sayona's favour since April 2022 of around 15 -16% and which is not small change when your costs in Canadian dollars are potentially in excess of C$200 - $C250 million at least in the next 12 months of USD revenue generation.
And when you compare particularly the AUD to USD provision in the PFS released in May 2022 , the figure used was 76 cents. So if we get a further 7 - 8% decline , thats actually almost a 19 - 20% uptick for savings based on the FORECAST numbers of the PFS.
And 20% of C$250 million is $50 million on the cost side with potentially another minimum $50 million in additional revenues received into Aussie dollars in the income statement that that of what the PFS would have allowed for.
So that's potentially a $100 million dollar or more favorable efficiency gain compared to previous expectations.
And then you have the concept that Sayona's JORC resources with reserves PLUS any increases in JORC from Moblan or Jourdan / NAL are also subject to a potential revaluation component due this 15 - 20% favorable movement in ' converting ' revenues , costs , and resources in USD translation.
So even if you said that 50% of LOM existing and increased JORC should be revalued for this 15 - 20% at say 75 - 80 MT of LOM resources at USD $5,000 per ton. That's effectively a ' revalue ' or further appreciation in the underlying value of the business of a further $119 million from your resources.
So that's a conservative $200 odd million of value which could be potentially seen by the markets as NOT being accounted for yet in the stock until we get a little closer to actually announcing how much production we have available in excess of our current commitment under off-take PLUS who and what price in USD and how soon we will be making these FIRST sales.
So that's potentially a further 2.25 - 2.5 cents per share on the SP we may or may not even have currently reflected at this stage JUST based on favorable currency movements on our overseas assets.
(20min delay)