Re KDR Chart, page-2691

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246 Posts.

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05/07/18

17:43

Post #: 34168563
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Originally posted by eshmun ↑

Overbought on lithium stock hype. Pumped by investors flying by the seat of their pants. If you want to ride a bull, you need to be prepared to get bucked off. Lithium developers with large resources are producing FS with upwardly distorted NPV values, as the price of concentrate can not be predicted beyond 5 to 10 years (if that), let alone for the next three decades. The discount on future cash flows in these NPV models needs to be calculated based on a rapidly converging time series (for the years beyond the limits of reliable price estimates of the concentrate), ie basically discounted to zero beyond a certain point in time. The flow sheet in the scoping study at Mt Holland looked to me like a plate of spaghetti and I wouldn’t trust the results of any of these DFS unless the they are based on very high internal rates of return. I stand by my contention that the project will have high real stripping costs. When I last owned the stock I couldn’t see much value beyond about 60-70 cents. The current strength in this stock/company is its share price, as it insulates shareholders from dilution if capital needs raising. If the share price falls away that strength will be lost.

Looks like the stock closed at the bottom of the support/resistance zone which I posted earlier. It really needs to bounce up off $1.66 right now.Esh

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I'm trying to cross reference your previous post about the high real stripping costs, but can't find it.
Was that under a different name?

KDR Price at posting: $1.66 Sentiment: Hold Disclosure: Held
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0 Great analysis

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