..and this table below is an illustration on how well valued ASX lithium stocks are
..LTR at closing price of $1.245 is trading at a market cap of just over $3B, Bell Potter has projected a NPAT for 2025 at $139mil (based on Spodumene price of $1400/T, now spot is well below this) and a PE x of 21.77.
..Compare to established Gold stocks GOR and PRU which are well established gold mining operators with recorded profits of $115m and $290m respectively, both are trading at close to or below LTR.
..and while LTR's plant is nearing completion, it is not completely de-risked yet with funding still in progress. Lithium as a mineral is subject to a wide variety of risk factors as covered under this thread including demand variability. There is no risk to Gold demand. Gold prosper with recession but not lithium.
..we can say perhaps these gold stocks are cheap, but I think it is more like they are reasonably priced, but given LTR's progress and the space it is in, LTR's valuation is still above what can be considered reasonable. A 15x PE for LTR would place its price at about 86c (30% lower than where it is at).
