Pretty sure a few people here should lower their expectations, perhaps google 'time value of money'.
Hypothetically, a resource of 800Mt is not worth double that of 400Mt. Costs wont remain the same through life of mine, commodity price/s won't remain the same for duration (especially over a boom period) and it definitely won't all get to market at the same time, the part where you get the money for it. Just to name a few reasons.
Assuming 200Mt is proved (could end up over 1000Mt!), at 10Mt/year mined (which is ridiculously high to start at) this would have a 20+ year mine life. Even if lithium/tin prices remain elevated in 10-20 years time, this has minimal impact on economics today. I get the impression a few people here don't realise cash flow year 1 is more valuable than year 2 etc, compounding each year into the future. Quickly each extra year of life isn't worth much at all (assuming it all goes well).
This asset is potentially too big (excluding the transportation issue/getting large volumes out quickly from the start), I think it is workable, but it will probably take a couple of years to properly develop logistics, allowing production to then ramp up significantly.
Although it also becomes a strategic asset. Snap it up today and secure an endless source of lithium/tin and lock in the price of lithium for the buyer/s. Make it work and you can print your own money! If certain companies went after it, they could see their competitors struggle to find lithium supply, forcing them to higher cost alternatives or a price set by the owners. Probably more likely you work out how many players want a piece of it and split it up or negotiate with them to take it all out together.
Of course those that would want this asset are going to be aware of all this, they sure aren't going to pay overs for it. They are going to use every trick in the book to get it as cheap as possible, why wouldn't they? There are tools/strategies available that can achieve this for them.
I honestly am not expecting to get more than 20c for this, if things go to plan. That is not to say I don't think it is worth more than 20c, pricing things best case and if things go to plan probably isn't going to be accurate, especially here. Also nothing ever seems to go to plan on the ASX and this is based in the DRC, so I don't exactly expect this to be any different. I'll be very happy to be proved wrong though.
You can do all the calcs you want, but at the end of the day it is only worth what the highest bidder/s are willing to pay.
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