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Well i did a lot of calcs when i brought in around 1.50 and...

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greyhounder

346 Posts.

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29/11/17

00:41

Post #: 29197394
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Originally posted by RPaulson ↑

Over valued? Why?

I can understand if you do not expect nameplate to be achieved and thus no potential for expansion (Phase II & beyond)

Even so, the company is producing 14,000 tonnes of lithium annually.

0.66*[(14,000*10,000)-(14,000*3,000)]= ~$64mln gross profit.

Gives us a 16 PE and we should be valued at roughly $1bln solely off current production. Let alone the fact we will likely achieve nameplate and expand production. Using same basic formula for 35,000ktpa we see a valuation of $2.5bln => SP of ~$12

Rough back of envelope (ignoring many factors) and I understand that costs are probably higher but so are lithium prices (and they are increases while costs are likely to fall).

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Well i did a lot of calcs when i brought in around 1.50 and valued it at 5 and then 7 with expansion. Not sure that i had a PE of 16 would have been lower.
There are also risk factors of alternate tech, slow takeup in EVs, spec product pricing etc etc but you dont want to hear that.
I went short again today with half position my signals were not activated just a hunch. If it tries 630 again in the morning i am all in still have a target around 5.20.

ORE Price at posting: $6.14 Sentiment: Sell Disclosure: Not Held
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