Hi guys, thanks for all your research and confidence - 8horse, drmanhattan etc. especially like scarpa’s VB-fuelled analysis, this is my second ever mining stock so much appreciated.
I’m just trying to get an idea of how to value the lower end of mananos target of 1 billion tonnes. I’m trying to use some high school chemistry here:
Let’s say we have 1 billion tonnes of rock at 1.40% Li2O. That means we have 14 million tonnes of Li2O. Li2O is roughly 40% Lithium by weight (2*5.94/15.99). Thus we have 5.6 million tonnes of pure Lithium. Apparently Lithium carbonate is what used in batteries, and Lithium is roughly 18% by weight in that molecule. So 30ish million tonnes of Lithium carbonate can be made. At a hypothetical value of $12,000 per Lithium carbonate tonne (see below link, converted the $9,000 US forecast to AU) this gives $360 billion worth of Lithium carbonate??
I’m guessing we just ship it out in it’s Li2O form, so say we take a 10% cut that’s still $36 billion and this baby is only valued at ~$400 mill.
Lithium price source
https://oilandgas-investments.com/2017/top-stories/lithium-prices-to-stay-high-to-2024-ubs/