Hey LD good to see you around the traps. And This is true...

Hey LD good to see you around the traps.
And This is true regarding TLG grade.

Talga's grade is quite high @ 24% in their reserves and delivered a pre-tax NPV8 of US 1BN. So post-tax and converted to AUD around 1Bn give or take some change.

Meaning currently trades at 50% their post-tax NPV.

As you know Grade isn't everything - and you can still have a economically viable deposit at a lower grade.
Siviour (RNU's project) - with 8% TGC reserves over LoM - delivered a post-tax NPV10 of ~390m AUD (noting without the downstream BAM economics built in)

Meaning currently trades at 120% their post-tax NPV.

The value proposition for ITM is - what will their feasibility study deliver in terms of post-tax NPV and what % should the MC of the company be in relation to that.

It appears that CSPG economics is feasible for Campoona (stage 2 met complete) & Lacroma with stage 1 met worked in that process flow sheet as well. In terms of grade, resource size, process flow sheet, strip ratio I can see ITM being maybe not as economic as RNU but still viable, and still able to print a decent EBITDA.

Continuing with that logic further should ITM deliver a post-tax NPV of say 250M AUD for it's lacroma and campoona graphite project somewhere early next year. We'd be trading at 10% our post-tax NPV. I postulate that 30-40% would be fair at that point given advanced licensing, location, upside in resource + sugarloaf + REO stuff then = 75-100m AUD = 75c-$1

That also does not consider if sugarloaf becomes viable which would be a standalone project/flow sheet.

Disclosure i dont hold RNU or TLG but consider them both quite robust projects with a great long term investment thesis for holders. My personal preference/investing strategy has generally always been looking for lower MC co's with maybe greater risk, but hopefully greater upside.

We'll see how we go here - for the greater sector success hopefully the graphite pricing moves back north and/or some ex-china pricing starts getting published more publicly.

SF2TH