For some strange reason LPI (and now BRZ) are priced for disaster. Management is not panicking and have delivered 99,9% bg samples, we have an export license for the old code tenements which can grow along with the resource. Fully diluted (25c options) we have 296m shares in issue with approx A$33m in cash (incl Arg cash and option strikes). 2 WA tenements worth ~A$15m and that leaves us with an EV of A$33m for 50% of Maricunga. Either we and the management don’t know something or this is the biggest buying opportunity out there. Yes the EIA and DFS are delayed by 1 quarter but that’s hardly a crisis. Even if we’re forced into a sub optimal deal with Codelco on the Litio tenements the NPV of the old code land fully drilled up is equivalent to our PFS numbers. As best as I can understand our old code license is sacrosanct and cannot be touched.
LPI doesn’t need to raise cash so no more CR selling in the future. Unless to a solid offtake partner.
Something is amiss or should we be mortgaging our houses?!
