It would seem that GS is trying to pull the wool over our eyes with some tricky financial accounting and of course expecting no one to find the flaw.
The following is from GS'S report, on the Comsec site, on CXO, where they have called a sell and SP of $1
GS says....."The Finniss plant is expected to produce ~160ktpa of 5.8% spodumene concentrate, with recent exploration success giving Finnis a 12 year mine life based on current reserve (10.6Mt @ 1.3% Li2O), where we factor in ~175ktpa average over the same ~12 year mine life on current resource (18.9Mt @ 1.32% Li2O as of July 2022, at a lowered cut-off grade of 0.5% and average LOM price of US$1,250/t)."
"Forward estimates are budget projections for revenue, expenses and financial position for the three years beyond the current (budgeted) fiscal year".
Does everybody agree with that, of course you do . That time frame is pretty much how most Governments forecast the road ahead .
But not Goldburn Sachs.................................not when it comes to Core Lithium
They are saying that Finnis over their ( GS's ) forward projection of 12 Years ,that's right 12years , will have revenue of an average of only US1250/tonne (not much more than we get for dso)
Hello...... is there anyone out there that has forward projections of 12 years on anything ......hello ..........anyone ???????
You see GS wouldn't dare do a forward projection of Finnis over the standard 3 years because the price per tonne would more likely be around an average of let's say US $ 4000per tonne and oh no, we can't do that, because that would just make Core Lithium look red hot as a Lithium producer and we cannot have that now can we, so we'll do a 12 year forward average estimate and hope no one notices the idiocy of the maneuver
Well, I noticed GS, and now everyone will notice
In any accountancy practice, anywhere, a 12year forward average estimate would be regarded as stupid and absurd. Seriously, 3-year forward estimates are hard enough and are usually flawed over the period, but GS and its crystal ball are just breathtaking in their knowledge of the future .
I have made an argument
You be the judge
Expand
(20min delay)