Other than historic Tanco mine, most other Canada lithium mines look very hard to put into production. Based on the factors below, you may need apply a discount when estimating MC based on resource.
1. Limited road access. Building road/bridges is costly. 2. Hard to get environment approval for production. 3. Far from City/Town. It's Ok for exploration, but it's not easy work for production. 4. Running cost per ton is higher than major lithium producers.
Lots of people only consider resource size, but neglect the difficulty of production, which is totally wrong. I may buy some PMT shares if it's undervalued at this stage, but I am still thinking what is the right discount applying to the difficulty.
PMT Price at posting:
86.0¢ Sentiment: None Disclosure: Not Held
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