Canaccord has a price target of $1.50 for CXO, $1.90 for LLL....

Canaccord has a price target of $1.50 for CXO, $1.90 for LLL.


Macquarie views current CXO share price is factored in a long term (spodumene concentrate) price of US$2,500/ton.
If LLL used the same long term price of US$2,500/t, price target will lift to $4/share according to Canaccord.






Here's my exercise:
If based on long term spodumene concentrate price at US$2,500/ton, LLL's 40% - 45% ownership would generate between $684m and $770m for minimum 18 years, total free cash flow would be $13B - $15B over 21 years.

Versus Current market cap of $700m for LLL.






Here's my exercise for conversion calculation from lithium carbonate price to spodumene concentrate price (pure for exercise).

Lithium carbonate price peaked in China just over CNY600,000/ton, equivalent ~US$87,847/ton, SC6 ~US$8,366/t. Currently is still falling, at around CNY450,000/ton, lithium carbonate price ~US$65,885/t, SC6 ~US$6,145/t. If current price dropped by further 55% to CNY204,900/t (equivalent US$30,000/t LCE or SC6 ~US$2,515/t), LLL still could make $684m net profit after tax per year once the stage 2 online in around three years time. BTW, LCE at US$30,000/t, China lepidolite lithium producers would be struggled to survive as confirmed by three reputable industrial experts.

All imo, and always do your own research.