Hope Ubique13 does not mind me posting his Comparison Table for Lithium on a new Thread to discuss Goulamina value. I have been posting for years but rarely bothered to start a new thread.
Yesterdays ann (8/1/21) said " Contemporaneously, we are actively progressing options to advance and realise the value of our world-class Goulamina Lithium Project."
Advancing Goulamina likely means seeking offtakes and Finance. Realising the value likely means a sale, spin off or JV. The value of a discovered asset such as Goulamina cannot be included on the Balance sheet. So retaining it and 'realising' value would mean coming up with some sort of scheme to sell but still own?
Anyway if we want to find out what something we own is worth we go on line and check the asking/market price of similar items. Ubique13's Table provides that information for us. I have copied it below.
Ubique 13 includes on his Table Lithium DFS NPV10 (Attrib) value for FFX and its peers. Also included is the "Trading at % of NPV" %.
I note that the
Table shows both AVZ and LTR at that time traded at 45% of of NPV10. Using 45% as a starting point for our Lithium value/asking price we get $A1506x 45% = $678 million value and haggle from there.Its a long way from the Euroz value of $30 mill. They said this was cheap compared to peers and was likely based on bottom of Lithium market sentiment.
Can't argue about market Cap value. It changes daily but its what the market thinks the companies on the table are worth. DFS comparisons are apples for apples and our DFS having been verified by CHICO is arguably more reliable.
Its going to be an interesting 12 months. No rush to sell Lithium. I prefer a spin off to take advantage of the EV bull that is just starting. The BOD may see this as a 'Northern Star' GOLD opportunity. Sell Goulamina and buy a GOLD resource and build another Plant with the proceeds. Add another possible big find on our Holdings and we are suddenly a huge Goldie.
The next 12 months will be interesting and exciting for holders.
(20min delay)