Hey all I was doing some workings on AJM in terms of a valuation...

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kelkent

833 Posts.

138

31/08/17

09:55

Post #: 26887104

Hey all I was doing some workings on AJM in terms of a valuation of what potential MC could be when producing occurs and came out with the below.

It has some simple assumptions but also is also based upon a wide range of lithium pricing in USD

Feel free to critique and DYOR, but with cashflow imminent my conclusion is at a very minimum this is undervalued by about 35%

Column 1 Column 2 Column 3 Column 4 Column 5 Column 6 Column 7 Column 8 Column 9

0 Sale Price (USD) 537 600 650 700 750 800 850 900

1 All in Costs including royalties (USD) 287 287 287 287 287 287 287 287

2 1.54mtpa Ore Shipped 219,000 219,000 219,000 219,000 219,000 219,000 219,000 219,000

3 Exchange Rate 0.78 0.78 0.78 0.78 0.78 0.78 0.78 0.78

4 Profit 70,192,308 87,880,769 101,919,231 115,957,692 129,996,154 144,034,615 158,073,077 172,111,538

5 Earnings Multiple X5 350,961,538 439,403,846 509,596,154 579,788,462 649,980,769 720,173,077 790,365,385 860,557,692

6 Earnings Multiple X10 701,923,077 878,807,692 1,019,192,308 1,159,576,923 1,299,961,538 1,440,346,154 1,580,730,769 1,721,115,385

	Column 1	Column 2	Column 3	Column 4	Column 5	Column 6	Column 7	Column 8	Column 9
0	Sale Price (USD)	537	600	650	700	750	800	850	900
1	All in Costs including royalties (USD)	287	287	287	287	287	287	287	287
2	1.54mtpa Ore Shipped	219,000	219,000	219,000	219,000	219,000	219,000	219,000	219,000
3	Exchange Rate	0.78	0.78	0.78	0.78	0.78	0.78	0.78	0.78
4	Profit	70,192,308	87,880,769	101,919,231	115,957,692	129,996,154	144,034,615	158,073,077	172,111,538
5	Earnings Multiple X5	350,961,538	439,403,846	509,596,154	579,788,462	649,980,769	720,173,077	790,365,385	860,557,692
6	Earnings Multiple X10	701,923,077	878,807,692	1,019,192,308	1,159,576,923	1,299,961,538	1,440,346,154	1,580,730,769	1,721,115,385