Neo Lithium Corp V.NLC

RE:Capital Raise for Production Plant

[SnowyWindows]

Take the 40% partnership agreement. NLC has about a 1 year pay back on its project. So if we had the cash ourselves to build the full ponds/production plant/equipment, we would pay ourselves back in 1.5 years. That amount might be close to $500M. So in 3 years Neo Lithium would have to divide $500M between itself and the partner. If Neo Lithium receives 60% we would get $300M in cash in roughly 3 years from now. NLC is trading at a $90M market cap right now. $300M is about 3x our current valuation.

You are free to price the risk/reward potential of receiving 2-3 times your money, in the form of stock repurchases/dividends, in about 3 years. Most people on this board are buying the stock now, but you can definitely wait to see if it goes lower. 

pone wrote: Based on the old reports I read, we might expect that the production plant for Neo Lithium might require $400M to $500M of additional capital.  We might expect a joint venture partner to supply 30% to 40% of that and the market would have to support the rest.   It is hard for me to understand valuation post-financing when the new market cap is likely to be more than five times as large as the current market cap, with a significant dilution to go with the new money coming in.   Does anyone have guesses about a post-money valuation and how do you get to that number?

Looking at how things when at Orocobre from Oct 2012 when they announced the Toyota joint venture, they had effectively bottomed prior to that announcement and then traded almost flat for two years building out the plant.   Is there a reason Neo will not follow a similar course?