LTR

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92.5¢ liontown resources limited

MERGING OF MIN & LTR --> LARGEST LITHIM COMPANY IN WORLD, page-86

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ckleinnba

545 Posts.

33

14/04/23

15:44

Post #: 67280559
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Originally posted by mailpal: ↑

Upon reading Anatol's post I did some research on MIN.ASX.

SP is $78 AUD.
Market Cap: $15B
Shares: 193M

If MIN had the same amount of shares as LTR (2.2B), with the same market cap its SP would be $6.84 today. In other words MIN.ASX SP is high because they have issued less shares.

However, when I looked at some other numbers that drive the SP this is what I found:
Revenue: 3.4B
Net Profit: 0.34B
Profit Rate: 10% (0.34B / 3.4B)
Dividend: $1.2

LTR’s revenue is estimated to be 3.36B at full capacity production (600 ktpa) at current market spodumene price of $5,600 AUD. With 88% profit rate (from the DFS) LTR’s net profit will be 2.2B with the current spodumene prices.

If they distribute 40% of the profits it translates to 40c per share dividend. If we apply the MIN ratios above LTR’s SP should be $26.20.

This is how I arrived at this number:

If I buy 1000 MIN shares it will cost me $78K.
My return on this is 1.2 x 1000 = $1,200.
Or, 1.54%.

To achieve 1.54% return for 40c dividend on 1000 shares, the SP should be $26.20 when it is operating at full capacity (and selling spodumene only).
(By the way, if they distribute 50% of profits the SP would be 32.75 and so on).

This is based on how the market is evaluating MIN. They may evaluate LTR differently of course but still the numbers are the numbers and they show a huge discrepancy in the current SP discussions.

Expand

you do realise MIN is not a pure lithium miner?....... lol

MIN has multiple business segments generating revenue from other industry sectors... like construction.... iron ore....

your calculations does not make rational sense

its like comparing Apples to Oranges

and plus.... who will wait till SP is $26... definitely not me

LTR Price at posting: $2.74 Sentiment: Hold Disclosure: Held
1 Upvote

0 Great analysis

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(20min delay)
Last 92.5¢		Change -0.040(4.15%)		Mkt cap ! $2.243B

Open	High	Low	Value	Volume
94.0¢	95.0¢	92.0¢	$8.521M	9.153M

Buyers (Bids)

No.	Vol.	Price($)
26	369258	92.5¢

Sellers (Offers)

Price($)	Vol.	No.
93.0¢	5600	2

View Market Depth

No.	Vol.	Price($)
17	161831	0.925
36	434133	0.920
14	290407	0.915
40	708990	0.910
14	423032	0.905

Price($)	Vol.	No.
0.930	3600	1
0.935	67300	2
0.940	15000	2
0.945	30000	1
0.950	110600	9

Last trade - 16.10pm 02/08/2024 (20 minute delay)

LTR (ASX) Chart

MERGING OF MIN & LTR --> LARGEST LITHIM COMPANY IN WORLD, page-86

Commodity house Trafigura funds Develop Global's copper-zinc Woodlawn play with offtake deal in place

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Uranium prices on the NYMEX are stable, but ASX uranium stocks are sinking on Friday. The answer lies in Kazakhstan

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MERGING OF MIN & LTR --> LARGEST LITHIM COMPANY IN WORLD, page-86

Top Stories

Commodity house Trafigura funds Develop Global's copper-zinc Woodlawn play with offtake deal in place

Westgold sets its sights on top five producer status through merger with Karora

Week 31 Wrap: JORC rules to get tougher; RBA rate hike chance 50/50; US Fed Sept cut still the quo

GreenX picks up prospective copper project in Germany

Cost blow-out for Rook I uranium project sees share plummet for NexGen

Venture to sniff out high-grade REE targets at Jupiter project, WA

Vmoto sales plummet -50% YoY as weak demand in Europe & China stifles EV scooter sales growth

Is oil undervalued?

Uranium prices on the NYMEX are stable, but ASX uranium stocks are sinking on Friday. The answer lies in Kazakhstan

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Featured News

Buyers (Bids)

Sellers (Offers)

Featured News