Mate you are way out of whack with your valuation of LPI.
For those of you who don't know this yet. Today is the day 5 winning bids are due to be announced. Guess what? Only the two highest bidders out of the 5 BYD Chile and Servicios y Operaciones Mineras del Norte has been awarded with their 80,000t CEOL for $61M and $60M USD resp. This sets the standard for anyone who wants to purchase a lithium operation contract in Chile, this is what the going rate will be!! See below:
https://www.asiafinancial.com/chinas-byd-wins-chile-lithium-extraction-contractSo, 160,000t LCE has been auctioned for $121M USD. On a pro rata basis, MSB's 400,000t LCE would be valued at $302.5M USD.
Considering the lower royalty associated with MSB's old code mining concessions, this 400,000t quota should be valued at a minimum of 400M USD (555 AUD)
I previously mentioned that MSB's 5 million tonne, world's second highest grade resource should be valued at 400M AUD minimum. Lady and gentlemen I have to apologise that I am way way out of whack with that. Because you cannot name one brine project in the world with 5 mt of lithium at average grade of 1000 mg/l, that has all the licence, and permit & environmental approval in place and is shovel ready like LPI's Maricunga project. This is a billion dollar resource but let's discount it by 50% say $500 Million USD (694 AUD), I don't think anyone would disagree.
This values MSA's maricunga project at 1.249 billion AUD.
LPI's 51.3% share is $624.5M AUD
This is a share price of $2.08, If LPI is to be taken over.
I am expecting a binding finance and offtake agreement signed with one or both the CEOL winners involving Codelco. Then Maricunga will be a project with an annual production of 40,000 tpa.
For all these years the management and us long term shareholders have been waiting for this and it is finally about to come.
Again, I do apologise my previous incorrect valuation of this company.
