I would like to make some assumptions regarding a fair value of this stock, hope that you all add your view concerning that.
In my opinion, ORE is clearly undervalued, assuming that the governmental approval will be granted.
So what is a fair value of this stock?
The current price for lithium carbonate is US$4.300, deducting production costs of US$1.230 (incl. potash credit) and multiplying that with an initial target production of 16.400 tons, we get a revenue of US$50.348.000, minus 25% Toyota stake and let´s say 30% tax (just guessed), applying a P/E ratio of let´s say 15 (SQM has 30!) and divided through 103M shares, the fair price per stock would be US$ 3,85...
What do you guys think?
NF
ORE Price at posting:
$1.75 Sentiment: LT Buy Disclosure: Held
