NPV of Mt.Cattlin was around 400m$ right? With current Lithium prices maybe it is 800m$. But we have about 2B shares. So Mt.Cattlin would be good for an SP of $0.4. The other 0.3$ are then coming from SDV mainly, maybe a tiny little bit for JB. Means that a lot of future work is already in the SP now. Of course a fully operational SDV is worth much more then 0.3$ per share (600m$) but it will also take a bit of time to get there (3-5years?). So IMHO SP is getting near being overvalued. We will see a lot of profit taking in the coming days and probably a big "sell on the news" when the payment news surfaces.
Do not get me wrong, GXY is doing great and will bring SDV to production and probably also James Bay. And with all the money they earn from Mt.Cattlin they can and will expand more in Australia as well I guess and will become a hell of a big miner. But it will not be a straight line up for the SP, never is. Think we are near a peak and taking profit now and getting back in later (and lower) might not be a bad move.
GXY Price at posting:
66.0¢ Sentiment: Buy Disclosure: Held
