I guess a real question for me is what kind of enterprise value to EBITDA multiple is appropriate for a small producer, assuming they can successfully use the capex they raise and get to nameplate production.
A major like SQM trades over a long market cycle between an EV/EBITDA multiple of 7 to 20, and it currently is around 18. Expect that to go higher if lithium pricing gets crazy, but that isn't sustainable.
Should a little company like COB get a smaller multiple given extra risks? What kind of multiple makes sense? Maybe there are analogies we can make to iron ore or gold or other resource companies that reach production that we can draw on to get a general sense for where those multiple fall?
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