To those of you who has the slightest doubt about LPI is undervalued you must have not been made aware of the new quota bidding recently took place in Chile. The highest bidders amongst 5 companies and their bids were published see below:
https://www.bnamericas.com/en/news/5-companies-bid-in-chile-lithium-tenderSo to sum it up, the five winning bids are:
Highest bidder BYD Chile offered 61 million USD for one allocation of 80,000t LCE
Servicios y Operaciones Mineras del Norte offered 60 million USD for one allocation of 80,000t LCE
Cosayach Caliche offered 30.1 million USD for one allocation of 80,000t LCE
Albemarle offered 60 million USD for two allocations of 80,000t LCE
Totalling 211.1 million USD (292 million AUD) for a total of 400,000 tonnes quota of LCE.
LPI already has 400,000 tonnes production and export quota under the old code which attract a much lower royalty. so would you say this 400,000 tonne of quota itself is worth upwards of 400 million AUD?
and would you say LPI's 5 million tonnes of world's second highest grade, most advanced, shovel ready lithium tenements are worth conservatively at another 400 million AUD?
So not to mention LPI's WA assets, cash holdings. Would you say the entire JV is worth at 800 million AUD?
LPI's 51.3% of 800 million is $410 millions
This is a share price of $1.36 per share for LPI
Wouldn't you say my method of valuation is a very very conservative approach?
