Critical Elements Lithium Corp V.CRE

NPV + Blue-sky = $???

[Wasisname]

Now that federal and provincial permits are in hand, the next big de-risking event will no doubt be project financing. Eric has stated in at least one video that CRE wants partner(s) who will have “skin in the game”, which could mean buying either a part of the Rose deposit or shares of CRE.  With the current crazy lithium prices and inadequate supply forecast for the next decade or so (at least by most forecasts I’ve read!), I doubt CRE will do an equity financing with an offtake partner for any substantial discount to the NPV/share, especially with the blue-sky potential to increase resources on their extensive land package. Are the CRE guys thinking “We know signing this deal will drive the stock price up a few bucks but we’re such nice guys we will give it to you at current market price” – I don’t think so; CRE has some serious pros tending the shop and I am thinking a pretty sweet deal will be coming our way in the next few months. Say CRE is expected to go to 300M shares in the coming short-medium term, which with a NPV of $CAN2,400M would be equivalent to $8NPV/share. Just guessing here, but with OEMs scrambling for lithium supply, I am thinking an equity financing deal with an offtake partner would be more within the $8/share range than anywhere near the current market price. This is all pure speculation on my part, but I have been here and accumulating for over ten years and won’t be cashing in for a while yet.
Good luck folks. I think the fun has just begun!

[Wheeler]

I agree 100%, the company doesn't have to sell shares at these prices to finance the mine so why would they. We didn't hold out on a partnership for this long for nothing.

[tinker901]

In your calculations (NPV/share) you assume 100% of NPV ? At best, I think it would be more reasonable to say 60%, at least before CRE actually has spodumene for sale. So, 2400 / 300 * .6 = 4.80$/ share These are logical assumptions. But looking at where we are now and where others are sitting, maybe logic is only a small part of the equation.

[Wheeler]

I'm wondering if they are going to drill the rose further to increase the resource and subsequently the NAV before they complete a deal. I was very pleased to hear JSL say during the RK Equity interview that drilling will continue throughout the winter and will in fact be easier and cheaper. I didn't realize that.

[tinker901]

Yes Wheeler, drilling in winter can be a bit cheaper since you do not have to install temporary bridges over wet areas and small creeks. This saves time time setting up new drill sites. But I would say that the money economy is the smaller factor in winter drilling. The main one is accessibility. Some areas are simply out of the question in summer. But do not hold your breath for a new and

[cawboye]

Thanks for all your input over the years Tinker, much appreciated, but I do beg to differ I think with CRE`s track record over the last 13 years I do think by the time we get financing and a partner we could well have a increased reserve (NI 43-101) to think all of a sudden JSL is going to change stripes and meet some semblance of a proposed timeline for financing etc. is ludicrous. GO CRE GO !!!!