PLS 2.33% $2.94 pilbara minerals limited

LG Chem, page-59

  1. 1,065 Posts.
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    Hi all,

    I'm running my own valuation and just having trouble confirming a couple of things. Hoping some of you may be able to assist as I'm trying to work out earnings per share. Easy if you were working on pre tax/depreciation (i.e. EBITDA) but not taking these expenses into account is a bold strategy.

    1. Depreciation expense. We know the capital outlay for the construction of the mine is $214m and the life of mine is 36 years. The building itself isn't a depreciating asset but some of the equipment is. Not sure what a reasonable per year depreciation expense should be based on?

    2. The DFS confirms prices for "average realised lithium price" of $537 per annum. I assume that this includes the spodumene 6% and lithium carbonate equivalent (LCE)?

    Thanks very much.
 
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