Hi Norman, thanks for the kind thoughts. A value of a share is very hard to put a price on at any point or 2 points in time, so really is what the market thinks it is on any one day. We all can and do think the valuation is incorrect depending on if we hold, want to buy or have sold.
As a holder I think we are undervalued, but for the number of shares on issue and the stage we are at, by probably by something like 20c undervalued, but that value will grow as we head towards DSO sales and then the concentrate sales. Value will again go up with participation of the conversion plant as well.
My own belief is that when we start getting regular income, even from DSO we should be worth at least $1 as we are further derisked. If LCE prices rise then that should also push the price higher, but a fall would likewise bring the price back.
As the resource grows then the value also goes up, IMO.
So of course from now into the future, even by the time we are first selling concentrate, our value should be somewhere $1-2, IMO, and by the time $4Mt is being concentrated and the ownership and running of a conversion plant, with prices around current ones, then $3-4/sh.
The further into the future the more a WAG it becomes, with parameters that can vastly change those prices, but I see a future where we are processing 6-10Mt/a of spodumene, with a 500-600Mt resource and several partners with conversion plants, all producing $2B+ in cashflow per annum, which should turn into an extremely high share valuation, all within a dozen years.
It is because I believe in the lithium battery lead future, where ICEs are a part of history like steam engines, all within a short period of time. I'm expecting a spectacular uptake of EVs in the next 5-8 years that leaves all the analysts scratching for answers of why their expert opinions were so wrong on the low side, when to me the answer is obvious, they just don't understand disruptive change.
I also believe that we have the lithium the world needs, so our production will go very high commanding a higher price than others because the grain size of the spodumene allows for a pure product, unlike many other mines and brines.
YNMA look in my profile for my location.
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