as a stand-alone project, most of us believe the share price should be north of where we are at atm but obviously the trend of lithium atm is not helping with confidence in the sector.
there is also a fair amount of conflicting info around Li deficit vs surplus over the next 3-10 years and unfortunately general discussion around it gets muddy with a lot of strong opinions. Add to the fact that a lot of other companies have seen capex forecast blow out (though LRS have shown strong numbers in the PEA which I think some people think are too good to be true), there may be some hesitancy.
from my simple geo brain - • project is in a country that wants to progress mining • project is supported by local/national politicians (Brazil) • robust PEA which has significant upside with infill drilling, exploration and commercial acquisition • strong, technical management team which is attracting the right talent • Sigma have created a decent blueprint which LRS can utilise to streamline their development and reduce overall risk •LRS has exposure to other companies which have significant potential (Maverick, Solis etc) • expected short term upgrade to JORC resource will add further serious value to company.
there’s still risk - given the geopolitical crap going on, Li price doing unfavourable things and other Li companies not hitting targets… but the potential for LRS to be a Tier 1 operator is getting closer and closer with every announcement. I believe that they will and that’s why I have put all of my eggs into this basket.
LRS Price at posting:
26.5¢ Sentiment: Buy Disclosure: Held
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