Great question - to me matters not what the SP is in the Short term, I'm not a trader. Although personal prediction/target for EOY is around the $1.50 mark - remembering the Scoping study will be completed in Q4 , and spell out the very mega -profitable mining project of North Dome. This should put a rocket under the SP and this is all before EOY.
Ken Brinsden CEO of PLS has recently stated that all large Spodumene Deposits in Tier 1 locations have been found. ESS is one of the lucky ones here!
But I have pondered what the long term SP could be in a couple years like many here .
1. I we assuming every greenfield, brownfield, current expansion of existing mines are taken to mining there will still be massive supply shortages coming into 2030 and battery metals will be the limiting factor for Electric car manufactures. At least a decade and probably more Car producers wont be able to produce as many Cars as they would normally do if supply was not an issue. So unless there is manipulation in the Spod price, US$ 4-6K /t will be the new normal for Spod for quite a while.
2. All decent Hardrock and Brine resources will be mined.
3. If you believe 2. then North Dome WILL be mined. It has to be, Spod prices have incentivized and supercharged Exploration, Mining and Production and prices are not going down anytime soon.
4. If you believe 3 that North-Dome will be mined then - conservative MC of ESS is 1.5-2B - due to the deep drilling we will probably have a RESERVE to go mining bigger than CXO's 7.4mt. We could have around 10mt Reserve
5 With some dilution to raise funds taken into account the SP could easily be $5.00-$5.50 longer term 2-3 years right before our first shipment to our first off-takers and cornerstone investor (ME's thinks this will be the same Company)
Currently though, Its looking like another surge on the Lithium Stocks over the next 2-3 months. The most undervalued Li stocks (with Resource) will provide the most value in the near and long term--------> ESS
Keep your eye on the prize.
ESS Price at posting:
60.0¢ Sentiment: Buy Disclosure: Held
