GREY:NMKEF - Post by User
Post by
Charleneon Nov 28, 2019 5:06pm
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Post# 30403698
Upside with deal & dilution
Upside with deal & dilution I hope it is an all equity deal without debt. Based on the past update. They need $877M to finance the rest of the project. They have about $77M in cash on hand. So, they need about $800M. If its all equity at $0.25 per share.
New value = value with current shares @ 0.25/share + $800M
~ $200M + $800M = $1 billion @0.25.
However, based on the technical report at these low lithium prices - the NPV is $3.1 billion. That implies a 3x upside. That is roughly $0.75/share.
There will likely be an execution discount applied to the stock, so we will likely see the price between $0.50-$0.60 until the project completes. This assumes the lithium prices stay flat. If the prices go down, so will the share price. If the prices go up, share price will follow.