Andy,
Got to agree heavily here.
Sox we know the board are targeting 4mtpa.
Let me just lightly gloss over what that means for 1 years production ONLY, and ONLY on a spodumene operation, which has the lesser margin when compared to a carbonate/hydroxide operation which is the end game.
4mtpa = 780,000t spodumene at 6%
300 cash cost vs $1,000 USD sales price = 700m USD margin per tonne.
1 years operation = 546,000,000m USD cash profit.
In AUD that's $728,000,000...
Il let that sit in silence......
So whilst a pause is taken for that, apply a PE of 7 which is light on for a LOM of 20 in a bull market, and that's effectively 5 billion.
Divide that by 235m shares... that's $21 a share...
Now assume, say an RG outcome where 40/40/20 split with some JV partner and Mali Gov as a template and you get $8 per share....
$8 per share vs 50c
Conservative cash cost, conservative sales price, conservative operation (only spod not higher margin carbonate/hydroxide), conservative PE...
We really need to be talking multi dollars here.... that's why I heavily agree with your graph.
Spot on.
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