GT1 - Megathread, page-1377

Its already testing levels that I didn't think were possible and unsurprisingly from that, I'm sitting on large losses. There was a time not that long ago when analysts were noting the ball-park starting valuation for lithium projects was $10m per Mt of resource. This increased where there was a clear pathway to production. I don't believe it would be possible to progress a greenfields project to the point GT1 has for the MC that GT1 has. When investors do look to re-enter the lithium sector (and I believe they will at some stage) GT1 will stand out as cheap and far cheaper than trying to start with exploration to progress to the position they are at.

If a company were adding value with their progress towards a projects development and the market recognised that value add, the EV should be around if not above the sum of capitalised exploration and evaluation expenditure plus the accumulated losses to support getting to that point. At any point below that, the shareholders contributing to that progress have a negative return on their investment. Clearly GT1 doesn't have an EV of $108m+.

If the insiders were bailing out realising they had invested in a dud, I could understand the huge expenditure vs valuation disconnect but the insiders are doing the exact reverse and throwing new monies at the project.